Delignit

DB: DLX

€40.2m market cap

€4.9 last close

Delignit manufactures ecological products and system solutions based on sustainable raw materials for the automotive and railway industries. Exports account for over 40% of sales.

Investment summary

After further positive guidance in April, Delignit’s H119 earnings shortfall (EBITDA down 16%) and full-year profit warning are all the more disappointing. In mitigation, the company has arguably been a victim of its own successful Automotive OEM business in ramping up for special call-offs that may yet materialise, while incurring higher costs than planned for a still potentially transformative motor caravan order. Management now expects 2019 revenue of €64m (ahead of last year but below the original forecast of €70m) and an EBITDA margin between 6% and 7% (originally 9.3%, as in 2018). Its confidence in Delignit’s strategic direction and long-term prospects appears to remain undimmed.

Sector
Industrials
Share price graph
Price performance
%
1m
3m
12m
Actual (29) (10.9) (36.8)
Relative* (9.3) 18.5 (27.8)
52-week high/low €7.9/€4.1
*% relative to local index
Key management
Markus Buescher CEO