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%.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
N+1 Singer - St Ives - Downgrade
19 Jan 17
Marketing activation has been impacted by further decline in grocery retail impacting profit by c£5m. Strategic The Company is also taking this opportunity to revise its guidance for Strategic Marketing as its recovery pace is not running at the planned target rate. PBT falls from N1Se £31.9m to £25m. The Company expects dividend to be held based upon lowered guidance and the implied cash flow performance. There do not appear to be any covenant issues. Forecasts and TP under review and downgrade to Hold. We expect the shares to test the 100p level.
19 Jan 17
Aggregated Micro Power* (AMPH): Funding for first peaking power plant project (CORP) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Cello (CLL): Increasingly backed by, and leveraging, technology (BUY) | 4imprint (FOUR): Growth backed by strong cash flow continues (BUY) | Allergy Therapeutics (AGY): Positive trading update and market share gains drive upgrades (BUY) | Shanta Gold (SHG): Q4 operating results (BUY) | Sound Energy (SOU): Tendrara extended well test result (BUY) | Revolution Bars (RBG): Price target increase (BUY)
Trading conditions difficult but acquisitions underpin growth
23 Jan 17
FY16 revenue will be £53.7m (FY15: £44.8m), in line with ZC estimate of £53.9m, showing growth of c. 20% yoy underpinned by the three acquisitions undertaken in the year. However, due to higher costs relating to the acquisitions and, to a lesser extent, gross margin pressure, PBT will be in the region of £7.0 to £7.2m equating to growth of between 5.5% and 8.0%. As a result, FY16 ZC profit forecast is reduced by 8.0% to £7.0m. The impact in FY18 and FY19 is muted by the announcement of a further acquisition leading to an increase in revenue estimates of 8.7% whilst profit estimates fall c.4.5% in each year, respectively. Despite the decrease in forecasts the PER multiple on FY17 earnings remains single digit at just 9.1x, against a distributor average of 15.8x. With commitment to the forecast dividend increase reiterated, Flowtech offers an above average yield of 4.1%
N+1 Singer - Northern lights - Shining prospects for 2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.