Delignit

DB: DLX

€61.9m market cap

€7.55 last close

Delignit is a German manufacturer of ecological products and system solutions based on hardwood for the automotive, rail and safety equipment industries. It was acquired by Germany-based industrial holding company MBB in 2003 and was later listed in 2007. 70% of group sales are derived domestically.

Investment summary

Delignit has combined another strong trading performance (H118 EBITDA up 16%) with further signs of a potentially lucrative return on its strategic goal of business model transition. While early days, the award of a high-profile OEM contract for motor caravans brings not only the promise of double-digit million annual sales but, yet more importantly, encouraging evidence of Delignit’s ability to transfer its model to new markets. Meanwhile, H1’s clear EBITDA margin beat (by 10%) suggests that, as for 2017, this full-year management guidance may well prove cautious. Finances remain sound (net debt/EBITDA of only 0.8x for the last 12 months).

Sector
Industrials
Share price graph
Price performance
%
1m
3m
12m
Actual (3.2) 15.3 (37.1)
Relative* (4.9) 5.4 (33.3)
52-week high/low €11.8/€5.8
*% relative to local index
Key management
Markus Buescher CEO