Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on STORE ELECTRONIC. We currently have 5 research reports from 1 professional analysts.
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Record EUR98m order for non-food retailer
11 Dec 15
Store Electronics Systems (SES) has announced that it has won the largest ESL order in the history of the market. The €98m order from a leading electronic retailer headquartered in Germany follows on from a €35m order from the same customer, which is currently being executed. The order will see SES’s subsidiary Imagotag install its ESL systems in 1,000 stores across 14 countries, with a concentration of high-spec colour and NFC-enabled e-graphic labels. The contract will commence in Q116 and we assume that it will run over the next two years with a strongly positive impact on 2016 revenues.
The pieces are dropping into place
18 Nov 15
Over the last 18 months, Store Electronic Systems (SES) has transformed its business, investing in a range of next-generation electronic shelf labels (ESLs) and extending its distribution network into the Americas and Asia. The new labels are generating strong interest from the existing food retailer base as well as from non-food retailers, but with their production runs still relatively small, they are margin dilutive. We see significant upside for earnings as sales growth leads to operational gearing benefits.
Coming to a shelf near you
17 Nov 15
Store Electronics (SES) reported a more than doubling in y-o-y revenues in Q3 on 212% growth in international sales and a 16% increase in French revenues. The results reflect strong H1 order inflows arising from the transformation of SES’s product range and its international expansion efforts. We expect SES’s new products to continue to gain traction, and major new orders in markets so far resistant to ESLs. Europe should fuel the bulk of this growth in 2016-17 as ESL penetration is still less than 10% in the region compared with c 50% in France and Norway.
Record order book supports strong growth in H2
16 Sep 15
Following a weak Q1, Store Electronic Systems (SES) has delivered an improved second quarter with revenue up 13% year-on-year and 47% sequentially. Gross margin was 200bp lower y-o-y but better than we expected given the US dollar strength and mix of newer, lower-margin products. The order book stands at a record €101m, much of which is expected to be delivered in H2. Therefore, our revenue forecasts remain unchanged despite H1 reaching only 40% of our FY15e revenue forecasts.
€35m contract win and record order book
23 Jun 15
Store Electronic Systems (SES) has signed a €35m contract – its largest ever – with a leading German retailer, which extends the already record order intake announced in the Q1 trading update. Revenue was down 16% y-o-y in Q1, but the healthy order book provides a solid foundation to our €102m FY15e revenue forecast and shows market demand is growing. The strong US dollar and increasingly competitive market, however, are likely to put pressure on margins, and therefore we have reduced our FY15e gross profit forecast by 15%.
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.
N+1 Singer - Small-cap quantitative research - Momentum screen refresh + 10 focus stocks
12 Jan 17
We have refreshed our momentum style screen for the first time since inception on 26 July 2016. As before, the screen selects the 25 stocks exhibiting the most extreme momentum characteristics, according to our measurement method. From these we have selected 10 to focus on. Since inception the screen has underperformed both the main small-cap and micro-cap indices against a background of generally rising momentum. We have noted a subset of the basket, where decelerating momentum at the time of measurement appears correlated with significant share price falls since selection. We shall monitor this factor with the new screen, albeit there are only two such stocks showing this pattern, namely Lamprell (not rated) and Gear4music (not rated).
N+1 Singer - Morning Song 12-01-2017
12 Jan 17
As anticipated, the second half has again been stronger than H1 and results will be broadly in line with expectations. In line with this, the order book has continued to grow and is at record levels. This confirms that significant progress has been made in the Group’s shift towards its Technology Products division which, as targeted, contributed c.60% of group revenue in FY16. The small acquisition of Cable Power also gives a complementary boost to the product range. It is also worth noting the significant reduction in net debt, £1.0m ahead of our forecast. We remain supportive of the Group’s strategy and continue to see a bright future as this transition towards a design led technology solutions business continues. We look forward to more detail in March at the final results.
Upgrade on positive year-end trading update
10 Jan 17
The group has announced a positive year end update, with a stronger finish to the year delivering sales slightly better than expectations. Operational gearing results in a 7.5% increase in EPS. Cash generation is significantly better than expected. As a result, we increase our price target from 205p to 254p, based on a fair value P/E of 12.0x for 2017. With healthy growth set to carry on, the shares should continue to show robust momentum, with the potential for a special dividend an additional positive.