DVS Technology

DB: DIS

€142m market cap

€14.9 last close

DVS TECHNOLOGY (also known as Diskus Werke) is an archetypal Mittelstand systems provider with very strong market positions in the sub-segments within which it operates. The company is organised around three business units: Machine Tools & Automation, Tools & Components and Production.

Investment summary

A sharply deteriorating machine tool market and procurement cost pressures have driven a reduction of over a third in DVS TECHNOLOGY’s H119 PBT and a material revision of full-year PBT guidance from €16m to €10m. This is all the more disappointing after H218 resilience (PBT up 11%) defied a similar profit warning. Management recently adopted a comprehensive group-wide plan to strengthen marketing and secure efficiencies. Finances remain sound (equity ratio almost unchanged at 50%) despite much higher net debt (up by a quarter since December), thanks to working capital needs and continued strong investment.

Sector
Industrials
Share price graph
Price performance
%
1m
3m
12m
Actual (0.7) (10.9) (9.8)
Relative* (4.7) 10.9 (0.3)
52-week high/low €17.9/€13.2
*% relative to local index
Key management
Axel Loehr CFO