Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LEGRAND SA. We currently have 7 research reports from 2 professional analysts.
|01Dec16 01:00||PRN||Fighting Global Warming: Legrand Reasserts its Determination to Reduce its Energy Footprint|
|01Dec16 08:00||PRN||Fighting Global Warming: Legrand Reasserts its Determination to Reduce its Energy Footprint|
|23Aug16 02:55||PRN||World-Class Smart Home Products Now Available to HomeSphere Network|
|26Jul16 03:00||PRN||Legrand® Announces New Leaders in Sales Reorganization|
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Too slow, too expensive, too French
01 Dec 16
Legrand 9 Months 2016 total Sales grew +4.1% (+2.1% organic) . Company Mgmt Guidance for 2016 is +2% in Organic Sales with 19.4% Ebit Margin (from 19.3% in 2015) By Regions, France organic Sales dropped -2.3% in 9M 2016 (base effect will be clearly negative in Q4 2016 in France !), Europe grew +5.7% (17% of total Sales), Italy +3.8% (10% of total) North America +6.5% (30% of total) and Others -2.2% (25% of total) with weak Sales in Brazil and Middle-East
Solid Q3 16 figures, modest FY16 guidance lift
10 Nov 16
Legrand reported satisfactory numbers for Q3 16 Revenues in the first 9M16 came in at €3.7bn, a +4.1% increase yoy, of which 2.1% organic growth. In Q3 16 alone, organic growth reached 2.5% and was mainly driven by North America (+7.8%) and other Europe (+5%), while Italy grew 2.4%. The operating margin in the first 9M reached 20% (20.2% before acquisitions), +5.7% yoy, and in Q3 16 alone the adjusted operating margin was 19.7%. FCF generation was also very strong at €482.5m (versus €479.8m) representing 13% of sales. The company revised its FY16 guidance slightly upwards with organic growth now expected between 0% and +2% (versus -2% to +2%) coupled with an adjusted operating margin of between 19.3% and 19.6% (versus 18.5% to 19.5%). The company achieved eight acquisitions since the beginning of the year, totalling annual acquired sales of over €170m, of which 80% with products N°1 or 2 in their markets. For 2016, acquisitions should contribute over +4% to growth.
Growth pulled by acquisitions, USA and... Italy!
01 Aug 16
Legrand released its H1 sales, reaching €2.45bn vs €2.41bn yoy. Also, H1 adjusted operating profit amounted to €492.7m vs €478.1m yoy. Its H1 organic growth in sales stood at +1.9% as a result of solid performance in the US growing by +5.5%, while growth in mature European economies reached +1.6%. Legrand’s net profit stayed at €283.5m but decreased slightly as a percentage of sales. Finally, the Eliot programme that Legrand launched in 2015 continued successfully and ahead of schedule in implementing targets set in the programme. The group confirmed its 2016 outlook saying that it expects organic change in sales of between -2% and +2%, and adjusted operating margin before acquisitions of between 18.5% and 19.5% of sales.
Solid Q1 16 figures boosted by a strong US
04 May 16
Main facts The group’s revenue reached €1190m, +1.9% organic growth including +7.6% in North America (+6.9% in the US alone) and +4.7% in Italy, partly offset by -4% in France – despite improving leading indicators – and ROW (-2.4%). The adjusted operating profit reached €226.77m, corresponding to a 19.1% margin (versus 18.8% in Q1 15), while net debt was lowered to €790m versus €866m last year. Legrand confirmed its FY16 target of organic growth between -2% and +2%, and the adjusted operating margin before acquisitions (at 2015 scope of consolidation) of between 18.5% and 19.5% of sales. The company announced two other small acquisitions in the UK – Jontek, a specialist in solutions for monitoring assisted living platforms – and Indonesia – Trias, a specialist in cable management & distribution cabinets – which together represent sales of around €10m.
Cautious on 2016, but growth potential intact
12 Feb 16
Legrand published Q4 15 results in line with market expectations but gave a cautious guidance for 2016. * Q4 15 organic growth was +0.9% yoy (of which France -1.6%, North America +4.3%, Italy +0.9% and ROW +0.6%). * FY15 sales grew 6.9% yoy to €4,810m (vs €4,499m in FY14) due to FX tailwinds (+4.7%), external growth (+1.5%) and a small 0.5% organic growth (vs guidance between -1% and +1%). * Adjusted operating margin was 19.4% (vs a target above 19%). The company proposed a dividend of €1.15, in line with expectations (56% payout ratio). * The company, however, issued cautious FY16 guidance with organic growth forecast between -2% and +2% and adjusted operating margin between 18.5% and 19.5% which points to a similar year as 2015 before any contribution from acquisitions.
Italy is bottoming out while US traction continues
05 Nov 15
Legrand reported its Q3 15 results, which look mixed at first take but overall are reassuring. 9M 15 sales reached €3.56bn, +7.1% yoy, of which +0.4% organic. The North American area reported a +32.1% rise in the period. The adjusted operating margin before acquisition costs reached 19.8% of sales. In Q3 alone, organic growth surged to 1.5% with a strong contribution from Italy (+2.6%) and the US (+5.4%) while the ROW remained sluggish at -0.3%. The operating margin was a tick lower in Q3 15 at 19.4% (versus 20% in H1 15) mainly due to the mix effect. The normalised FCF remained very strong at €480m, or 13.5% of sales, leading to further deleveraging, with a net financial position at €1,022m at the end of 09/2015 (vs €1,116m in Q3 14). Legrand now sees 2015 organic change in sales between -1% and +1%, instead of between -3% and +2% on 30 July and now expects its adjusted operating margin pre-acquisitions of at least 19%, instead of between 18.8% and 20.1%.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
N+1 Singer - Waterman Group - Encouraging AGM statement in line with expectations
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.