326967_OFFROAD KEY VISUAL 2020_323540_Sam Sunderland 3019-11-07 KTM DAKAR RALLY STAGE_(c)ktm ag

PIERER Mobility

SW: PMAG

€950m market cap

€42.15 last close

PIERER Mobility (previously KTM Industries) is a leading manufacturer of powered two wheelers, focusing on premium motorcycles and two-wheeled electric vehicles. With its well-known brands – KTM, HUSQVARNA and GASGAS – it is the largest sports motorcycle manufacturer in Europe.

Investment summary

PIERER Mobility has announced that it is seeing encouraging strength in several major markets as it emerges from the constrained environment of lockdowns. It is seeing share gains in the US motorcycle market, as well as strong demand for e-bike demand across its main European market. It has returned to full production following the production halt in Austria and is increasing staff numbers to meet the stronger demand. We maintain our forecast for now given continuing uncertainty, but the news of improving demand seems encouraging for the path to financial recovery.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 1462.0 211.0 112.0 182.3 23.1 11.2
2019A 1520.0 241.0 118.0 241.8 17.4 3.7
2020E 1431.0 200.0 57.0 100.5 41.9 5.2
2021E 1698.0 270.0 118.0 207.2 20.3 4.8
Industry outlook

PIERER Mobility’s historic target PTW market has been for motorcycles greater than 120cc that retail for over €2,500. The segment represents six million units or around 11% of the global PTW market. PIERER had a market share of around 9.5% of this market in 2019 with a record 280.9k registrations, up 10% on 2018. 66.2k were through the Indian jv partner Bajaj. The market for e-bikes and scooters has grown strongly in Europe, supported by structural long-term trends especially cleaner transport solutions.

Last updated on 28/05/2020
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 385
Forecast gearing ratio (%) 112
Price performance
%
1m
3m
12m
Actual 41.4 (12.7) (29.2)
Relative* 42.1 (8.3) (29.2)
52-week high/low €60.0/€25.0
*% relative to local index
Key management
Stefan Pierer CEO
Friedrich Roithner Vorstand CFO
Josef Blazicek Chairman of the Supervisory Board
Michaela Friepess Investor Relations