London, UK, 26 August 2021

Stern Groep (STRN): A strong H1, more emphasis on used/rental

Stern's 2020 financial and operational restructuring has placed it in a good position to cope with the uncertain car market in 2021. Opportunities to create further shareholder value range from M&A to high dividend pay-outs. We are increasing our EPS forecasts by 10.5% and 9.9% in 2021 and 2022 respectively, driven by the restructured organisation, digitisation efforts and an improving market environment. The valuation is undemanding, at 6.7x 2022e P/E.

Stern is trading at an FY22e P/E of 6.7x based on an anticipated recovery in profitability in the coming years. Compared to the peer group average of 11.3x, this reflects a large discount. Applying the average peer multiple and adding the book value of the stake in insurer Bovemij (€3.47 per Stern share) results in an implied valuation of €27.31/share (versus €26.70/share in March 2021).  

to view the full report or to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the .

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Edwin De Jong +44 (0)20 3077 5700

Learn more at and connect with Edison on: 

LinkedIn       

Twitter          

YouTube