Report
Pierre-Yves Gauthier

Robust funding, promises in locks & safety (SFPI Group)

Robust funding, promises in locks & safety

TARGET CHANGE

CHANGE IN TARGET PRICE€ 2.60 vs 3.17 -17.8%
Our target price is mechanically cut by allowing for a c. 23% drop in 2020 revenues and a best guess at zero profits. The small industrial conglomerate entered the COVID-19 crisis with a very strong balance sheet and a cool-headed owner and CEO. It should rebound as quickly as its underlying markets, notably the promising security/safety ones.

CHANGE IN EPS2020 : € 0.00 vs 0.21 -98.5%
2021 : € 0.16 vs 0.25 -35.1%
2020 earnings reflect the fact that a near 25% drop in revenue cannot help absorb fixed costs. We see only a partial recovery in 2021.

CHANGE IN DCF€ 2.66 vs 3.86 -31.2%
Our DCF is impacted by postponed growth and slower long-term expectations. The long-term growth expectations do not allow for a widening of EBITDA margins in rather competitive industries.
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
Pierre-Yves Gauthier

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