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Stern Groep

AS: STRN

Market Cap€103.7m

Last Close €17.5

Stern Groep is the fifth largest automotive group in the Netherlands. It has around 60 dealer and Stern Point car repair locations and revenues of over €800m. The company had 1,674 full- and part-time employees at year end 2020.

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Investment summary

Stern has announced that it is in negotiations with Swedish mobility group Hedin, which has offered €83m in cash to acquire all of Stern’s activities, except its participation in car insurer Bovemij. After the sale, Stern will look at strategic options for its Bovemij stake, which has a book value of €19.3m. Stern believes the actual value of Bovemij is much higher and is committed to realising the full value. The potential deal values Stern at >€103m, which represents a premium of at least 33% compared to the pre-announcement market cap of €77m.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2019A 876.8 26.4 (1.4) 29.13 60.1 8.4
2020A 751.1 27.8 0.8 (85.41) N/A N/A
2021E 801.2 22.0 12.3 196.72 8.9 5.4
2022E 863.1 23.0 12.4 196.05 8.9 2.8
Industry outlook

Automotive retail already had to deal with structural change and COVID-19 has presented another big challenge. After a 20% drop in new car sales in 2020 (356,051), sector organisations RAI and Bovag now expect 327,000 new car sales in 2021, mostly driven by a shortage of new cars. For 2022 a recovery to 390,000
(+19%) is expected. The volume decrease in new passenger cars sales is offset by higher average prices and better used cars sales. Car shortages and a better mix have also led to significantly improved margins and as such 2021 is going to be a very good year in terms of profitability.

Last updated on 18/01/2022
Content on Stern Groep
Stern Groep – Hedin to acquire Stern’s activities ex Bovemij
Industrials | Flash note | 14 December 2021
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Stern Groep – A very profitable year
Industrials | Update | 16 November 2021
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Stern Groep – A strong H1, more emphasis on used/rental
Industrials | Update | 25 August 2021
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Share price graph
Balance sheet
Forecast net debt (€m) 99.1
Forecast gearing ratio (%) 74
Price performance
%
1m
3m
12m
Actual 2.0 26.8 39.4
Relative* 2.3 31.3 17.8
52-week high/low €18.2/€11.7
*% relative to local index
Key management
Henk van der Kwast CEO
Finus Porsius CFO