Stern Groep

AS: STRN

Market Cap€81.5m

Last Close €13.95

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’s 2020 financial and operational restructuring has placed it in a good position to cope with the uncertain car market in 2021. Reducing balance sheet risk and reaching higher ROI’s are opportunities to create further shareholder value, as well as M&A and high dividend pay-outs. The valuation is undemanding, at 6.7x 2022e P/E.

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 47.2 N/A
2020A 751.1 27.8 0.8 (85.41) N/A N/A
2021E 837.9 19.9 10.3 164.00 8.4 N/A
2022E 873.3 23.7 13.3 211.51 6.5 N/A
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 to 356,051 in the Netherlands, sector organisation Aumacon now expects a stable market of 360,000 new cars (it was previously expected to rebound 16.6% to 415,000), while sector organisations RAI and Bovag still expect a rebound of 12.3% to 400,000. Stern should start to see the effects of optimising its dealer network, focusing on omnichannnel, moving out of unattractive car brands and executing cost controls.

Last updated on 14/10/2021
Content on Stern Groep
Stern Groep – A strong H1, more emphasis on used/rental
Industrials | Update | 25 August 2021
werkplaats-stern-11
Stern Groep – executive interview
Industrials | Edison TV | 18 August 2021
Stern Groep – Opportunities opening up
Industrials | Update | 12 May 2021
werkplaats-stern-11
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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 (3.5) (2.5) 13.6
Relative* (1.3) (7.4) (18.9)
52-week high/low €14.5/€11.6
*% relative to local index
Key management
Henk van der Kwast CEO
Finus Porsius CFO