CIE AUTOMOTIVE: 1Q’20 RESULTS (ANÃLISIS BANCO SABADELL)
1Q'20 vs. 1Q'19 Results:Sales: € 822.0 M (+1.2% vs. -2.8% BS(e) and -0.8% consensus);
EBITDA: € 140.3 M (-7.1% vs. -18.1% BS(e) and -14.6% consensus);
EBIT: € 104.3 M (-7.6% vs. -24.7% BS(e) and -20.3% consensus);
Net Profit: € 72.6 M (0.0% vs. -20.5% BS(e) and -20.1% consensus).
The 1Q’20 results came in above expectations in EBITDA (around +13% vs. BS(e) and +9% vs. consensus) and slightly below in cash generation due to higher CAPEX and more working capital consumption than expected.
Sales performed better than expected, growing +1.2% vs. 1Q’19 (-2.8% BS(e) and -0.8% consensus), although CIE has not broken these results down into organic and inorganic growth, only providing the figure for the drop on the global market (-24.4%). That said, inorganic growth has obviously played an important role. Based on our inorganic growth estimates (+18% vs. 1Q’19 BS(e)), organic growth would have come in at -17%, easily beating the market. The EBITDA margin stood at 17.1%, far above expectations (15.7% BS(e) and 16.0% consensus), as it has only fallen -150bps vs. 1Q’19 and is +100bps above the company’s pro forma figure including the acquisitions made for the full year. Thus, EBITDA fell only -7.1% vs. 1Q’19 (-18.1% BS(e) and -14.6% consensus) to € 140 M.
Net debt reached € 1.68 Bn (2.5x normalised NFD/EBITDA) vs. € 1.51 Bn in Dec’19, affected by the acquisitions made over the period, which is slightly worse than our estimate (€ 1.65 Bn BS(e)) due to higher CAPEX and more working capital consumption than expected. In this regard, the company has announced that it has cash and undrawn lines totalling € 890 M vs. €~500 M of maturities in 2020.
In short, we expect the results to be well received by the market, even after the stock has outperformed the IBEX by +4% since 19/02 (index high before the Covid-19 impact). Currently the stock is up +6.5% vs. the IBEX. There is a conference call that began at 15:30 (CET). BUY. T.P. € 26.85/sh. (upside +87.11%).
CIE Automotive is the parent company of an industrial group formed by several companies that are engaged in the design, manufacture and sale of automobile component and sub-units on the world market. In addition, Co. is also engaged in the bio-fuels business which is in the initial stages of development and is made up of various companies devoted to the production and distribution of bio-fuels.
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.