Kendrion develops, manufactures and markets a range of smart actuators for industrial (54% of revenues) and automotive applications (46%). The FY21 geographical spread of revenues is Germany 39%, other Europe 30%, the Americas 16% and Asia 15%.
In H122, reported revenue growth was 9.5% y-o-y, of which 5.0% was organic. Growth slowed down due to the many challenges in the market, particularly in Automotive which faced declining car production. With continued pressure on costs, EBITDA declined 4% y-o-y. Industrial continues good growth, benefiting from the accelerating transition to clean energy and electrification. Kendrion expects that markets will remain volatile for the foreseeable future, but remains very positive about its long-term growth perspectives.
Industrials
Cleo Ferreira
IRO
Jeroen Hemmen
CFO
Joep van Beurden
CEO
Forecast net debt (€m)
134.1
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 8.7 | 19.3 | (15.2) |
Relative | 2.8 | 7.2 | (15.4) |
52 week high/low | €21.5/€13.0 |
Kendrion’s Q322 results showed a relatively good performance under difficult market conditions, with continued pressure from a shortage of materials, volatile demand and inflation. Revenues in the quarter were stronger than we expected; the Industrial division remained the top performer, with revenues up 27% y-o-y, while the Automotive division returned to growth with an 8% top-line increase. Kendrion expects the current difficult environment to continue for the rest of the year and into 2023 but is confident that the trends towards electrification and clean energy will drive strong growth in the medium term. The average of our three valuation methods points to a fair value of €22.2 per share.
Y/E Dec | Revenue (€m) | EBITDA (€m) | PBT (€m) | EPS (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2020A | 396.4 | 44.6 | 5.7 | 79.25 | 21.1 | 6.1 |
2021A | 463.6 | 55.8 | 20.1 | 139.04 | 12.0 | 4.5 |
2022E | 515.5 | 58.6 | 20.3 | 160.50 | 10.4 | 4.4 |
2023E | 541.3 | 68.7 | 36.3 | 196.10 | 8.5 | 4.0 |
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