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PIERER Mobility

SW: PMAG

€1334.3m market cap

€59 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 is a leading manufacturer of powered two wheelers (PTWs) focused on premium markets through the KTM, HUSQVARNA and GASGAS motorcycle brands. It has added e-bikes as a new organic growth stream as urban e-mobility markets continue to develop. H120 saw strenthening demand for PTWs as lockdowns ended which continued in Q320. Having returned to full production in May, PIERER requires higher H220 production. Management increased FY20 revenue guidance by 3% to more than €1.45bn with an EBIT margin of 4–6%, and we increased our estimates modestly.

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 32.5 N/A
2019A 1520.0 241.0 118.0 241.8 24.5 N/A
2020E 1458.0 202.0 61.0 102.2 57.9 N/A
2021E 1736.0 285.0 126.0 230.4 25.7 8.3
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 6m 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 24/11/2020
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Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (€m) 0
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 9.4 13.4 15.4
Relative* 4.6 10.6 15.2
52-week high/low €59.5/€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