Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BEKAERT NV. We currently have 6 research reports from 1 professional analysts.
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EBIT margin trending towards 10%
02 Mar 17
Bekaert reported its FY16 results which showed impressive progress in all metrics resulting from cost-cutting actions and portfolio reshaping including acquisitions and business disposals. - Consolidated revenue reached €3.7bn (up 1%). - Q4 16 sales were up 9% vs Q4 15. Mergers and acquisitions accounted for 6% and organic sales growth was 3% driven by strong volume growth in Asia Pacific. - Gross profit increased by 15% in 2016: €690m (18.6% of sales) vs €598m in 2015 (16.3% of sales). - Underlying EBIT has risen by 32% (from €231m in 2015 to €305m in 2016) reflecting a margin of 8.2% versus 6.3% (+210bp). - EBIT has reached €260m vs €219m in 2015 and the EBIT margin has increased from 6% to 7%. - The ROCE is at 11.8% compared with 9.1% in 2015. - Net debt is €1068m including the €279m acquisition impact of the Bridon merger deal. - EPS is €1.87 vs €1.82 in 2015.
A mixed bag in Q3, as the solar market weighed
18 Nov 16
The 9M revenues reached €2,759m (-1% yoy) as organic volume growth of 4.5% was more than offset by the lower wire rod prices (-3.2%), while the effect of mergers, acquisitions and disvestments was +1.6%. The company expects continuing strong demand from the automotive and construction markets in Q4 16 and anticipates a moderate pick-up in demand from solar markets after the Q3 decline. A reduction in feed-in tariffs is expected in China in April 2017 and demand is projected to strengthen ahead of this change. The oil and gas markets will remain weak. Bekaert believes its transformational excellence programmes will continue to underpin its move towards a sustainable higher level performance and has revised its previous target range (between 7% and 8% REBIT) for full-year 2016 and now expects to achieve between a 7.5% and 8% REBIT margin on sales.
Strong H1 margins lead to a rise in FY16 guidance
29 Jul 16
Bekaert reported robust H1 16 results. Main facts: H1 16 revenue reached €1.82bn (-4% yoy), strong currency impact of €-63m (3% of revenue). Recurring EBIT margin of 8.6% (€157m) to be compared with 5.9% in H1 15. Net income was impacted by “other financial income and expenses” of €-53.2m (versus €-13.9m) and reflected the increase in the fair value of the conversion option of the previous convertible bond (€-42.7m) in line with the evolution of the share price. The EPS was, consequently, €0.58 versus €0.93 in H1 15. Net debt was €1,151m (versus €1,023m in H1 15)including the €298m acquisition impact of the Bridon merger deal. Net debt/EBITDA was 2.4x, unchanged from the same period last year and up from 1.9x at year-end 2015. Excluding the Bridon impact, net debt/EBITDA was 1.8x, slightly down from year-end 2015. The company expects it will end the year ahead of the target goal of 7% recurring EBIT, achieving between 7% and 8% REBIT for full-year 2016.
Negative FX and prices offset Q1 16 volume growth
11 May 16
Bekaert reported Q1 16 revenue showing mixed figures. The company also looks more cautious for the second half of the year. Bekaert achieved consolidated sales of €884m in Q1 16, a 2% yoy decrease. The solid organic volume growth (+5.5%) was fully offset by significantly lower wire rod prices (-6%) which were passed on to customers. At the same time, mix improvements (+3%) were more than offset by continued price erosion in tyre markets (-2%). The net effect of acquisitions (+2%) and divestments (-2%) was neutral, but unfavourable currency movements – driven by LatAm and Brazil – drove consolidated sales down by 2%.
Strong prospects ahead despite some tailwinds
26 Feb 16
Bekaert reported strong FY15 results and 2016 guidance, both above market expectations and our forecasts. Main figures: * 2015 revenue at €3.67bn, in line with expectations, corresponding to an organic growth of 2% (+14% reported). * The 2015 adj. EBIT reached €223m vs €164m last year, corresponding to an operating margin of 6.1% above expectations. * 2015 EPS €1.83 versus market estimate of €1.65. * Dividend raised to €0.90/share as expected (vs €0.85 last year). * Net debt €832m at year-end vs est. €991m despite acquisitions (€235m net of divestiture). Bekaert forecasts a significant step in 2016 towards the goal of a 7% adj. EBIT margin, and expects to outperform the market environment as it anticipates strong demand in the automotive sector (>40% of sales) to continue, while, seeing pressure across most other industries due to global overcapacities.
Increased volumes offset by pricing pressure
13 Nov 15
Bekaert reported Q3 15 revenues of €898m, 10% higher than last year, with acquisition and FX accounting for more than 15%. The organic decline was therefore 5% due to the positive price mix and volume effects (+1%) and significantly lower wire rod prices (-6%).
The tide is turning
20 Apr 17
Any investor worth their salt knows it is impossible to precisely call a bottom in a particular stock. For Gattaca, though, we believe this moment has now passed given the compelling valuation (6.9x EV/EBIT vs 9.8x sector average), attractive 9.8% unlevered cashflow yield and constructive secular trends supporting its specialist markets. Sure, Net Fee Income (NFI) like-for-likes (LFL) have fallen of late, yet equally there are now early indications that organic growth may soon turn positive.
19 Apr 17
We take a look at the supply and demand dynamics of the world’s largest diamonds. Less than 200 very large (>200 carat) gem quality diamonds have ever been found, yet 23 of these have been found in the past three years. This dramatic increase is being driven by a combination of the rapid increase in the number of billionaires and hence price and demand, combined with technological developments that have improved large diamond recovery and a certain amount of geological good luck.
19 Apr 17
Lombard Risk Management* (LRM): Beats demanding growth and profit forecasts (CORP) | Frontier Developments* (FDEV): Steaming ahead (CORP) | Tax Systems* (TAX): Right place, right time (CORP) | Acal (ACL): Stronger H2 and brighter outlook (BUY) | Fenner (FENR): Interim results signal upgrades (BUY) | Minds + Machines* (MMX): US and Europe domain sales (CORP)
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.