Market Cap€242m

Last Close €16.2

Kendrion develops, manufactures and markets a range of smart actuators for industrial (54% of revenues) and automotive applications (46%). The FY21 geographical spread of revenues is Germany 39%, other Europe 30%, the Americas 16% and Asia 15%.

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Investment summary

Kendrion’s Q322 results showed a relatively good performance under difficult market conditions, with continued pressure from a shortage of materials, volatile demand and inflation. Revenues in the quarter were stronger than we expected; the Industrial division remained the top performer, with revenues up 27% y-o-y, while the Automotive division returned to growth with an 8% top-line increase. Kendrion expects the current difficult environment to continue for the rest of the year and into 2023 but is confident that the trends towards electrification and clean energy will drive strong growth in the medium term. The average of our three valuation methods points to a fair value of €22.2 per share.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2020A 396.4 44.6 5.7 79.25 20.4 5.9
2021A 463.6 55.8 20.1 139.04 11.7 4.4
2022E 515.5 58.6 20.3 160.50 10.1 4.3
2023E 541.3 68.7 36.3 196.10 8.3 3.9
Industry outlook

In H122, reported revenue growth was 9.5% y-o-y, of which 5.0% was organic. Growth slowed down due to the many challenges in the market, particularly in Automotive which faced declining car production. With continued pressure on costs, EBITDA declined 4% y-o-y. Industrial continues good growth, benefiting from the accelerating transition to clean energy and electrification. Kendrion expects that markets will remain volatile for the foreseeable future, but remains very positive about its long-term growth perspectives.

Last updated on 30/11/2022
Content on Kendrion
Kendrion – Industrial continues on strong growth path
Industrials | research Update | 22 November 2022
Kendrion – EKF interview
Industrials | Edison TV | 4 November 2022
Kendrion – CMD confirms strategic direction and targets
Industrials | research Outlook | 30 September 2022
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Share price graph
Balance sheet
Forecast net debt (€m) 134.1
Forecast gearing ratio (%) N/A
Price performance
Actual 10.7 4.5 (18.3)
Relative* 2.5 (1.8) (12.3)
52-week high/low €22.4/€13.0
*% relative to local index
Key management
Joep van Beurden CEO
Jeroen Hemmen CFO
Cleo Ferreira IRO