Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LEGRAND SA. We currently have 8 research reports from 2 professional analysts.
Frequency of research reports
Research reports on
Progressive acceleration in revenue growth expected
09 Feb 17
Legrand reported its Q4 16 and FY16 figures. - Growth excluding FX: +6.5% (vs. +2.1% in 2015), of which organic growth of 1.8% (the target was 2%) and external growth of 4.7%; - 8 acquisitions were made in 2016 vs 4 in 2015: over €170m annual sales acquired; - Adjusted EBIT margin before acquisition: 19.7% when the target was 19.6%; - Total sales have been reached €5,019m (vs €4,810m in 2015): growth of 4.3%; - Adjusted net income excluding minority interest up 3% to €567m; - Robust cash flow from operations: €791.4m, i.e. 15.8% of sales; - Net debt has risen by €0.8bn to €1.0bn including more than €300m dividend paid and more than €400m invested in eight acquisitions (vs >€250m in 2015); - Dividend proposal: €1.19 in 2016 (+3.5%) from €1.15 in 2015.
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.
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).
Panmure Morning Note 29-03-2017
29 Mar 17
We are cutting our recommendation to HOLD as we see little upside from current levels given the lack of positive surprises in today’s trading update. Multiples of 4.4x 2017 sales and 17x 2017 EBITDA imply an expectation of at least slightly exceeding expectations. We had assumed that acquisitions will provide the momentum until organic investments deliver. However, acquisitions are proving elusive and excess cash is diluting returns. Moreover, our forecast relies on at least one order in vehicle simulator market, which has yet to be announced. The management has shown that it can use the financial markets to raise equity but it now needs to show that it can deploy excess equity productively.
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.
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)