Last close As at 05/08/2026
—
— 0.00 (0.00%)
Market capitalisation
—
Research: Industrials
Daldrup & Söhne is a leading drilling specialist in Europe and focuses on energy topics such as geothermal heat recovery, environmental protection and drinking water quality. With its drilling services, the company provides its customers geothermal energy sources as an alternative to fossil fuels. Over the next few years, Daldrup also aims to build up a portfolio of minority interests in medium-sized geothermal power plants, especially heating plants. Market conditions in the drilling segment remain positive, driven by customers’ long-term goal to increase renewable energy sources and reduce carbon emissions.
Daldrup & Söhne |
Leading drilling specialist in Central Europe
|
Alternative energy |
Deutsches Eigenkapitalforum 2020
22 October 2020 |
Share price graph
Share details
Business description
Bull
Bear
Analyst
Daldrup & Söhne is a client of Edison Investment Research Limited |
||||||||||||||||||||||
Daldrup & Söhne is a leading drilling specialist in Europe and focuses on energy topics such as geothermal heat recovery, environmental protection and drinking water quality. With its drilling services, the company provides its customers geothermal energy sources as an alternative to fossil fuels. Over the next few years, Daldrup also aims to build up a portfolio of minority interests in medium-sized geothermal power plants, especially heating plants. Market conditions in the drilling segment remain positive, driven by customers’ long-term goal to increase renewable energy sources and reduce carbon emissions.
Business in 2020 hardly affected so far
Daldrup & Söhne experienced minimal negative effect from the coronavirus pandemic in H120. Its supply and service chains mostly continued to work on time. The company’s projects are characterised by a relatively long development and decision period and, once financed, tend to proceed according to plan. Total output in H120 increased by 5% to €23m, driven by positive sentiment in the drilling market, and EBIT turned positive to €0.5m after a loss of €1.0m in H119. Management reiterated its FY20 guidance of total output of at least €40m and an underlying EBIT margin of 2–4%.
Long-term trends positive for drilling
Market conditions in the geothermal drilling segment remain positive, driven by targets set by its customers to increase the importance of renewable energy and emission reduction. At the end of September, Daldrup had an order backlog of €27.3m, which should ensure capacity utilisation well into 2021, according to management. Since then, the company has secured two more contracts with a total value of €7m. The most recent order creates a new market segment for Daldrup in Germany for exploring areas for the planning of a safe salvage of stored nuclear waste casks. For FY20 the underlying EBIT margin guidance is 2–4% and management considers an EBIT margin of at least 4–5% to be achievable over the next few years, including the effects of planned improvements in the group’s structure, project planning and control, management system and supply of material.
Valuation: Discount to peer group
Daldrup is valued at an EV/EBIT for 2021e of 12.6x, based on consensus estimates. This valuation reflects a discount to its peers, which we think is mainly caused by its below average margin. This offers potential for multiple expansion once the gap in margin has been closed.
|
Consensus estimates
Source: Daldrup & Söhne, Refinitiv (only one analyst) |
|
|
Research: TMT
TXT e-solutions has expanded its Italian IT services business with the acquisition of HSPI for €11.6m in cash and equity. The deal adds public sector, energy and utilities to TXT’s existing fintech and industrial verticals and broadens the services offered to management consulting. On a pro forma basis, we estimate the deal adds c 18% to FY20 revenue and c 22% to FY20 EBITDA.