Last close As at 05/08/2026
—
— 0.00 (0.00%)
Market capitalisation
—
Deutsche Börse (DB1) is a leading European capital markets infrastructure provider across pre-trading, trading and clearing, and post-trade segments. It is following a road map designed to secure faster growth including both organic and M&A elements. At the Q3 stage, the group reported that it is making progress in line with its objectives. DB1 is keen to use its available cash and debt capacity (up to c €2bn) for acquisitions that meet its criteria; these are set to be both lower risk and less transformational than London Stock Exchange’s Refinitiv transaction.
Written by
Deutsche Börse |
Financial services |
Share price graph
Share details
Business description
Bull
Bear
Analyst
Deutsche Börse is a client of Edison Investment Research Limited |
On track to meet strategic targets
Deutsche Börse (DB1) is a leading European capital markets infrastructure provider across pre-trading, trading and clearing, and post-trade segments. It is following a road map designed to secure faster growth including both organic and M&A elements. At the Q3 stage, the group reported that it is making progress in line with its objectives. DB1 is keen to use its available cash and debt capacity (up to c €2bn) for acquisitions that meet its criteria; these are set to be both lower risk and less transformational than London Stock Exchange’s Refinitiv transaction.
Progressing with strategic plan
Deutsche Börse set out its strategic plan, Roadmap 2020, last year. This aims to accelerate both long-term and cyclical growth. Key pillars of the plan are organic growth, focused M&A, maintaining technology leadership and disciplined execution, including cost management. Financial targets for the 2017–20 period include: secular, organic compound annual growth in net revenue of over 5%; net pre-exceptional organic profit CAGR of 10–15%; dividends equivalent to 40–60% of net profit subject to business conditions; net debt below 1.75x EBITDA; and a structural cost reduction of €100m by the end of the period (currently running ahead of plan).
Q319 result and outlook
Adjusted for exceptional items, DB1’s Q319 net revenues increased by 13% y-o-y, while costs, depreciation and impairments together rose by less than 8%, allowing pre-tax profit growth of 16% (net profit +18% to €282.9m). Exceptional costs of €46m in the period were primarily associated with acquisitions and measures to reduce costs as part of the strategic plan. On a reported basis, net profit increased by 10% y-o-y to €248.6m. One of the acquisitions completed in Q3 was Axioma, a global supplier of multi-asset class portfolio and risk management software and analytics. This has been merged with the STOXX index business to form a new segment, Qontigo. Within the overall revenue growth, secular growth contributed 6% (in line with the plan), cyclical changes 6% and acquisitions 1%. Secular growth drivers included new products, OTC clearing and pricing at Eurex (financial derivatives), together with growth in EEX (commodities), Qontigo, 360T (foreign exchange) and IFS (investment fund services). Looking ahead, DB1 reiterated its expectation for adjusted net income growth of 10% for FY19.
Valuation: P/E trails global peers
DB1 trades on prospective P/E multiples below its global exchange peers, which appears cautious given the group’s diversification and structural growth plans.
|
Consensus estimates
Source: Refinitiv |
|
|
Research: Healthcare
Laboratorios Farmacéuticos ROVI (ROVI) has reported operating revenue of €270.8m (+24% y-o-y) for the first nine months of FY19 (9M19), driven by substantial growth in the prescription-based pharmaceutical business (9M19: €199.2m, +27% y-o-y). The focus on new, proprietary products continues to benefit ROVI, as evidenced by ongoing success in the European roll-out of Becat (enoxaparin biosimilar), sales of which grew threefold y-o-y to €52.9m. Total LMWH franchise sales were reported at €122.6m (9M19, +44%), aided by Hibor sales growth in Spain. Management has guided to mid-single digit growth in operating revenues in 2020. We believe this is slightly cautious given the potential for growth across multiple areas of the business, despite the loss of some mature product sales. We value ROVI at €1.35bn.