Rosenbauer confirmed at BUY, TP EUR 52 - Pandemic year ended on a strong note
Rosenbauer reported better than expected prelim. FY 20 results, determined by an earnings/margin beat. Both revenues and operating profit reached new record levelsHaving achieved a 5.5% EBIT margin in FY 20, the FY 21 outlook of about 5% might not be particularly inspiring at first glance. However, we point out that the management usually provided guidance only at a later stage in the year and thus might have opted for an initially conservative wording
While the FY 21 guidance suggests limited short-term upside to forecasts, for us the investment case relies much more on an improved cash conversion.
Overall minor changes to estimates. We lift 2020 EPS by 9% to EUR 3.99 and increase DPS to EUR 1.25 (yield 3%)
Rosenbauer International is a holding company. Co. through its subsidiaries is engaged in the manufacture, sale and distribution of mobile fire protection and civil defense solutions. Co. maintains five business segments: vehicles, aerials, fire and safety equipment, service and spare parts/others, fire fighting components. Co.'s product portfolio includes a range of municipal fire fighting vehicles and aerials built to both European and the United States standards, series of aircraft rescue and fire fighting vehicles, industrial fire fighting vehicles, fire and safety components and equipment. Co. provides services and spare parts, instruction and training programs for its products.
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