Kendrion

AS: KENDR

Market Cap€339m

Last Close €22.7

Kendrion develops, manufactures and markets high-quality electromagnetic systems for automotive (52% of revenues) and industrial applications (48%). The geographical spread of revenues is Germany 39%, other Europe 30%, the Americas 15% and Asia 16%.

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Investment summary

Kendrion is a global player in high-quality electromagnetic systems that optimise safety, performance and comfort in automotive and industrial applications. Despite the short-term uncertainty, the underlying demand for Kendrion’s products is strong and it will benefit from long-term disruptive trends such as autonomous driving, electrification, emission reduction and industrial automation. Its valuation shows a discount to peers, which should gradually vanish when company targets are met.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2019A 412.4 43.8 11.0 93.57 24.3 N/A
2020A 396.4 44.6 5.7 79.25 28.6 N/A
2021E 438.1 54.1 19.7 109.51 20.7 N/A
2022E 477.5 62.9 29.1 151.89 14.9 N/A
Industry outlook

Kendrion’s targets for 2025 are an organic revenue growth of at least 5% on average per year and an EBITDA margin of at least 15%. For both Automotive and Industrial a market recovery is expected in 2021–22. In Automotive, Kendrion focuses on the car of the future (fully electric and autonomous), with existing but particularly with relatively new products. For Industrial Brakes, Kendrion expects the market to grow >5% per year, with above-average growth in robotics, wind power and industrial trucks.

Last updated on 21/06/2021
Content on Kendrion
Kendrion – Strong recovery set to continue
Industrials | Update | 10 May 2021
Kendrion – Energised by electrification
Industrials | Initiation | 19 April 2021
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Share price graph
Balance sheet
Forecast net debt (€m) 104.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (1.5) 6.8 102.0
Relative* (3.8) 0.6 58.4
52-week high/low €24.6/€11.1
*% relative to local index
Key management
Joep van Beurden CEO
Jeroen Hemmen CFO
Cleo Ferreira IRO