Report

P&L disappoints but focus should be on cash flow (SFPI Group)

P&L disappoints but focus should be on cash flow

TARGET CHANGE

CHANGE IN EPS2019 : € 0.17 vs 0.21 -22.0%
2020 : € 0.21 vs 0.23 -9.99%
Following the somewhat disappointing H1 on the P&L side, we have decreased our EPS for FY19 (c.-20%) and FY20 (c.-10%). Note, however, that cash generation was satisfactory, so that it had a limited impact on our valuation (c.-10%).

CHANGE IN NAV€ 3.46 vs 4.06 -14.7%
We have lowered the reference multiple, which has impacted rather significantly our NAV. Overall, EBIT is forecast to be c.15% below our previous forecast for FY20, which means that the decrease in our reference multiple explains all the decrease in our NAV.

CHANGE IN DCF€ 3.51 vs 4.24 -17.3%
We have decreased our long-term FCF conversion assumption from more than 40% to some 35%, on the back of a lower EBITDA than previously expected and stable capex. As the terminal value accounts for about 60% of the overall DCF, this had a significant impact on our DCF.
Underlying
Groupe SFPI SA

Groupe SFPI SA. Groupe SFPI SA is a group of manufacturing companies based in France. Each company of the Group designs, produces and distributes equipment for the construction and manufacturing industries. The Group divides its business activities into two main segments: Construction and Manufacturing. The Construction segment focuses on the supply of equipment, convenience, security and energy efficiency to a number of access points, which includes joinery, shutters, industrial closures, locks, sophisticated access security systems, monitoring systems and alarms, among others. The Manufacturing segment focuses on heat exchanges, sterilizers, air conditioning units, pneumatic transport and dust extraction systems.

Provider
AlphaValue Corporate Services
AlphaValue Corporate Services

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Analysts
Felix Brunotte

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