Tessenderlo Model update – FCF generation allows for dividends and growth investments
We have updated our model following yesterday's release of better than expected FY22 results. Following the FY23 guidance of a lower (pro-forma) adjusted EBITDA, we have lowered our FY23 adj EBITDA forecast by c. 0.2% with our new forecast representing an 8% decline vs FY22. As we are c. 6% below consensus, we do consider consensus to be too optimistic. After the successful exchange offer with Picanol, Machines & Technologies is consolidated as from January 2023 onwards. Tessenderlo now is an even more diversified group with a strong balance sheet and solid FCF generation which we assume will be mainly put at work for further growth projects, although the higher than expected dividend represents a 2.6% dividend yield. Valuation is attractive and we maintain our Accumulate rating and € 38 TP, which is the average between our DCF and SOTP model.Tessenderlo Group is engaged in providing solutions for food, agriculture, water management and use and re-use of natural resources. Co. has three operating segments: Agro, which is engaged in the production and marketing of crop nutrients (liquid crop fertilizers and Sulfate of Potash) and crop protection products; Bio-Valorization, which combines Co.'s activities in animal by-product processing, comprised of Akiolis (rendering, production and sales of proteins and fats) and PB Gelatins (production and sales of gelatins); and Industrial Solutions, with activities including the production and sales of plastic pipes systems and water treatment chemicals.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.