Report

Q3 trading statement: more time needed... (DMS)

Q3 trading statement: more time needed...

OPINION CHANGE

CHANGE IN OPINIONAdd vs Buy


CHANGE IN EPS2016 : € -0.14 vs -0.14
2017 : € -0.07 vs -0.05 ns
We have cut our estimates for FY17, with 9 months sales still showing a decrease in group sales on a comparable basis. Before new segments start delivering, the group is likely to show hardly changed sales numbers and profit will suffer from this still too weak top-line. This said, quarterly sales can prove volatile (sometimes depending on large orders), which means the P&L should be assessed on a longer period of time.

CHANGE IN DCF€ 1.94 vs 2.21 -12.3%
Our DCF valuation goes down with the revised forecasts, despite the fact we still bet on a rather significant uptick in group sales from FY18 onwards, due to both the former perimeter and the ramp-up of new segments (DMS Biotech and DMS Wellness).
Underlying
Diagnostic Medical Systems

DIAGNOSTIC MEDICAL SYSTEMS SA, (formerly known as DMS), is a France-based company, which together with its subsidiaries, designs, produces and markets medical imagery devices dedicated to conventional and digital radiology as well as bone densitometry. The Company manufactures a range of products for bone densitometry examination, including the ultrasound imaging system UBIS 5000, Challenger Envision, Stratos dR and Stratos. In the radiology sector, its products include Baccara dRF 43, EOL, Platinum and Da Vinci solutions, among others. In addition, it offers such products as scanners, transcranial Doppler, and Giotto Image mammography system. The Company operates several direct subsidiaries, AXS Medical, Apelem SAS, which manufactures radiology equipment, Medilink SARL, which produces Doppler and bone densitometry devices, Apelem SA, based in Spain, Alpha MOS based in France and one indirect subsidiary, SA Apelem and one indirect affiliated company, Spectrap.

Provider
AlphaValue Corporate Services
AlphaValue Corporate Services

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Analysts
Fabrice Farigoule

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