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|
Frequency of research reports
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.
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.