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.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.
15 Feb 17
At the current market capitalisation of £29m, we believe the shares are significantly undervalued. We estimate that the highly profitable Maritime business is alone worth at least £40m. With net cash of £9m at end-2016, this implies that the market is currently ascribing a combined negative value of £17m to the rest of the group, which together account for c.54% of group revenues. This is very harsh given the management actions to transform TP Group to a profit-driven Tier 2 specialist services and engineering company are bearing fruits across the divisions. TPG Managed Solutions is expected to more than double its profits in 2017, while TPG Engineering and Design & Technology are on course to deliver sustainable profits from 2019. Even if we ascribe zero value to Engineering, Design & Technology and Managed Solutions, the shares are worth 9.5p a share, a 38% upside from the current share price. BUY.
Taking the bull by the horns
15 Feb 17
Avon Rubber announced this morning that CEO Rob Rennie has left and been replaced with Paul McDonald, formerly managing director of Avon’s Dairy division. This news comes as a surprise and is likely to raise some questions over the CEO and CFO transition, with the CEO only being in post for just over a year. However, the group has appointed an executive already known to many who have followed the business, and as such should be seen as a good appointment with a track record of decisiveness and getting things done.