Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on TARKETT. We currently have 6 research reports from 1 professional analysts.
|20Jan16 09:30||GNW||Tarkett, active contributor to Wold Economic Forum's annual meeting in Davos|
|23Nov15 14:47||GNW||Tarkett, to engage alongside 79 multinationals calling for concrete action on climate change ahead of COP 21|
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Research reports on
Clear margin recovery in the CIS!
10 Feb 17
Key information: • Net sales up 0.9% and by 1.7% organically. • Adjusted EBITDA of €334m, up 17%. • EBITDA margin of 12.2% vs. 10.5% in 2015. • Net profit up 42% vs. 2015, to €119m. • FY net income €119m versus consensus of €104.2m. • Net debt/adjusted EBITDA of 1.1x vs. 1.7x at 31 December 2015. • A dividend of €0.60 per share will be proposed at the AGM, vs. €0.52 last year.
Recovery in CIS oversold/Tarkett doesn’t deserve to trade at American peers’ EV/EBITDA
28 Oct 16
Key information (9m figures): • Sales up by only 0.5% and 1.7% organically. • Adjusted EBITDA up by 12.2%. • Adjusted EBITDA margin up by 135bp to 12.9%. Key information (3m figures): • Sales decreased by 1.8% and by 2.1% organically. • Adjusted EBITDA up by 5.3%. • Adjusted EBITDA margin up by 101bp to 15.0%. Guidance: • For FY2016, management expects net sales between €2,700m and €2,750m, adjusted EBITDA in the range of €315m to €330m and financial leverage between 1.2x and 1.4x adjusted EBITDA.
North America and productivity gains boost adjusted EBITDA margin by 160bp
29 Jul 16
Key information: • Sales increased by +1.9% on a reported basis and by +4.1% organically. • Adjusted EBITDA increased by 18%. • Adjusted EBITDA margin up by 160bp to 11.7%. • Net profit increased by 49%. • Net debt / LTM adjusted EBITDA at 1.8x in H1 16 vs 2.3x in H1 15.
Good set of results but below our estimates
24 Feb 16
h2. Key information: • Net sales up 12.4% to €2,715m and down 0.3% on a lfl basis: scope effect +9.0% and currency effect of 7.2% excluding CIS and -3.4% from the CIS. • Adjusted EBITDA increased by 3.7% to €285m. • Adjusted EBITDA margin at 10.5% vs 11.4% in 2014 because of the negative developments in emerging countries (the CIS, APAC & LatAm division). • Net profit up by 36% to €83m. • Net debt/adjusted EBITDA at 1.7x vs 2.0x at end of 2014. • EPS at €1.31 per share vs €0.96 in 2014. • Dividend proposed of €0.52 per share, namely a 37% increase.
Low oil price environment should allow Tarkett to improve its financial performance
20 Jan 16
h1. Business Tarkett has a €1.5bn market cap. It is the third largest manufacturer of flooring and sports surfaces (namely “Resilient” but the clear leader when considering the broad portfolio of products and geographical reach. Thanks to its high exposure to the renovation market (c.80% of sales in sqm), the company remains fairly resilient to the construction cycle. On the negative side, the company is absent from the residential carpet and the ceramic markets, which reduces its potential market by two-thirds. We estimate that Tarkett has a 10% to 14% global market share when considering only its end-markets. The company has a multibrand distribution strategy (global and national brands adapted to the distribution strategy implemented in each market) and management believes that it has the strongest brand portfolio. Brand awareness among installers and sales advisors is the key to maintaining market share and solid margins. This explains the high proportion of sales people amongst employees (c.10% of overall employees). The two other strengths of Tarkett’s business model is the diversified mix of distribution channels as well as its local manufacturing facilities (35 industrial sites) in each of its principal geographic regions. h1. Recommendation and upside Thanks to the overall decline in equity valuations, we are initiating coverage of Tarkett with a buy recommendation and 16% upside. One month ago, we would have initiated Tarkett with the same target price but with a lower recommendation. h1. The weak oil price environment acts as a strong catalyst to profitability In 2012 (last available information), purchases of raw materials represented 61.9% of the cost of sales, of which 74% relate to oil-based products, namely PVC and plasticisers. Hence the company should enjoy a significant benefit from the low oil price environment. We estimate that the 75% decrease in oil price should result in a c.20-30% decrease in the overall cost of sales, which should allow the company to increase its profitability and reduce the selling price of its products. h1. Need to know The two main shareholders are the Deconinck family (50.2%), namely the heirs of Mr Allibert, the founder of the company, and KKR (21.5%). The company’s bylaws provide for double-voting rights for registered shares held for more than two years by the same holders from 22 November 2015. As a consequence, the power of other shareholders is fairly limited. In our opinion, KKR could sell its remaining stake as soon as it is satisfied with the valuation, implying an overhang on the potential upside.
N+1 Singer - T. Clarke - Strong conclusion to FY16, record order book
28 Mar 17
After significant upgrades at the time of the full year update (PBT forecast +43% FY16; +14% FY17), today’s results are c.4% ahead of our expectations at the PBT level and show strong growth on the prior year (PBT +48%). All regions achieved positive growth in revenue. The outlook statement refers to a still growing order book (£350m at the end of February vs. £330m at the year end) and the strength of recent trading, with London & the South East and Scotland said to be particularly positive. The Group has reiterated its ambitions to improve margins, but we have not incorporated this into our forecasts at this stage. We have nudged up our FY’17 forecasts (PBT +5%) and introduced FY’18 forecasts that imply 2% PBT growth. Despite the well justified bounce in the share price, the shares still trade at a significant discount to the peer group (7.6x FY17 PE, 4% yield).
N+1 Singer - Severfield - Strong H2 drives upgrades; CEO temporarily steps down due to ill health
28 Mar 17
Severfield’s trading update highlights that trading during H2 was strong and the Group now expects results to be ahead of expectations. Cash flow performance has been similarly strong with net funds at the year end also expected to be ahead of expectations. The strong performance was driven by both a better than expected revenue performance and better than expected growth in the operating margin. We expect to increase our FY16 PBT forecasts by c.9% to around £19.5m. In addition, we are disappointed to see that Ian Lawson (CEO) has taken a temporary leave of absence due to physical ill health. John Dodds (non-executive Chairman) will step up to Executive Chairman on an interim basis and Alan Dunsmore (FD) has agreed to assume the role of CEO on a similar basis. This should ensure the continuity of the business whilst Ian is recovering. The outlook for Sevefield remains positive and the Group has reiterated its medium term target to double PBT from £13.2m in FY16 by FY20. We remain positive on Severfield (one of our best ideas for 2017) and continue to see clear potential for it to outperform its medium term targets.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)