Event in Progress:
Discover the latest content that has just been published on Research Tree
The group’s FY23 results were consensus-meeting and guidance-beating, while the to-be-spun-off Pluxee comfortably outperformed, offsetting the below-consensus On-Site Services. Regardless, we reconfirm our Add opinion on Sodexo’s current shares as a way into the promising-looking Pluxee and to capture the potential upsides for both entities following the unwinding of the conglomerate discount. We will upgrade our estimates for ex-Pluxee Sodexo and we reiterate our upbeat stance on the to-be-list
Companies: Sodexo (SW:EPA)Sodexo SA (SW:PAR)
AlphaValue
Sodexo reported a buoyant Q3 and broadly maintained its FY23 outlook, but now with a better forecast for its Benefits & Rewards Services. We expect no material changes in the consensus or our estimates.
Following the consensus-beating H1 results, more upbeat FY guidance and the plan to spin-off and list the promising BRS unit, Sodexo’s share price rose by +10%. The spin-off of BRS should be well-received as it is expected to foster further cash generation potential and unblock the conglomerate discount. We expect an upgrade in the consensus and our target price has been raised by 7.5%.
Sodexo has reported a slightly-consensus-beating Q1 revenue figure and maintained its FY guidance, which remains in line with analysts’ expectations. However, the stock market seems not to have been convinced, which can be partially explained by the inflation-related concerns. We expect no material changes in the consensus but an upgrade in our FY23 estimates.
Both the FY22 figures and FY23 guidance were positioned above the market’s expectations, bolstering hopes of a full recovery in underlying profit. We expect an increase in the consensus and our estimates. More visibility on the group’s strategic roadmap should be provided at the forthcoming CMD on 2 November.
Sodexo published market-beating quarterly revenue and reiterated its FY guidance, despite the increasing inflationary impacts from its last communication. Despite a share price upturn, we don’t expect major changes to the current consensus and our valuation.
Companies: Sodexo SA (SW:PAR)Sodexo SA (0J3F:LON)
Sodexo reported a stronger-than-expected H1. However, the stock declined by c.10% yesterday (biggest faller in the Stoxx 600) following the de facto narrowed guidance, affected by the war-driven inflationary pressure and lingering pandemic impacts. Despite the (already) strong absorption capacity, market concerns have increased due to the massive geopolitical uncertainties. Additionally, the lack of any strategic or longer-term ambitions/positives have also frustrated the market, given the first
The founder family will henceforth have important influence on both the board and top management. Such a governance profile might be unfavourable for floating shareholders, reflected by today’s market reaction (-5%).
Sodexo reported slightly stronger-than-expected Q1 revenue and maintains its FY22 guidance. We suggest that the early effects of Omicron in December was rather mild and had made the group believe that the related disruption might be absorbable. This reassuring signal released by the first contract caterer should please the market.
Sodexo delivered consensus-beating FY21 results, despite the higher-than-guided but in line underlying profitability. Its FY22 outlook is also broadly in line with analysts’ expectations and our forecasts. Nevertheless, the market applauses (share price +7% this morning) the group’s strategic planning and the much higher-than-expected dividend proposal, which support and reflect its confidence in future cash generation.
The group’s unexpected and sudden termination of the contract with the current CEO Denis Machuel, without finding the new one, discourages the market.
Sodexo reported a stronger than expected organic revenue growth in Q3 and upgraded its H2 guidance, considering a better outlook, especially in the Americas. Other contract caterers should also benefit from this positive market trend.
Sodexo released better-than-expected H1 underlying results, highlighting the supportive margin. However, its short-term performance should continue to be affected by the volatile market situation.
The French contract caterer Sodexo has released Q1 revenues in line with expectations and an upbeat H1 outlook amidst the still severe COVID-19 impacts. Market consensus is expected to be inspired.
Companies: Sodexo SA
The Q3 results beat the market, but the company now issues a more pessimistic forecast for Q4. A recovery should probably take longer than previously expected for the catering business.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Sodexo SA. We currently have 78 research reports from 4 professional analysts.
Vertu is the fourth largest automotive retailer in the UK, with 188 sales outlets and a track record of cross-cycle growth, principally through businesses it has acquired, funded by equity, debt and most importantly cash generation. Vertu operates across the entire vehicle lifecycle, including new and used vehicle sales, and vehicle servicing, repair and parts. Service and repair is a 40+% gross margin repeating business. With economic headwinds, the transition to electric vehicles, recent overs
Companies: Vertu Motors PLC
Progressive Equity Research
Today’s trading statement from ZOO highlights a ramp-up in demand following the end to the industry-wide strikes of last year. ZOO struck a note of caution in its January update regarding the timing of orders. However new productions are starting to translate into a healthy order pipeline, with a good recovery in revenue anticipated in H1 FY25. The update guides to revenue of at least $40m for the year to March 2024, ahead of our estimate at $36.8m. We have improved our adjusted EBITDA loss marg
Companies: ZOO Digital Group plc
Loungers is an award winning, uniquely positioned all day café-bar group that has grown revenues an impressive 22.5% CAGR FY16-FY23. Comprising of Lounges, Cosy Club and Brightside, the 257-site group still has huge scope to grow towards its conservative ambition of over 650 sites. Loungers is profitable with improving margins and we forecast will generate over £100m free cashflow (pre-expansion capex) FY24E-FY26E. This, we estimate, will fully fund c.100 new site openings over the next three y
Companies: Loungers Plc
Equity Development
The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (
Companies: TXG NDVA TSVT BCOW Z29 TXG NCYT GNS SUN AMS OMG APH EKF EAH IMM AGL DEMG AGY TSTL IPO GDR ETX TRX HVO CTEC AVO OXB DEST VLG IXI VAL INDV AGR AVCT BAI 123F IMCR BCOW
Hardman & Co
Companies: Next plc (NXT:LON)Judges Scientific plc (JDG:LON)
Shore Capital
Companies: JDW MAB MARS WTB FSTA BOWL CPG SSPG LGRS SSTY OTB HSW TMO GYM MEX
Liberum
Companies: UTL ASC DNLM BWNG MONY DFS BOO
Pinewood’s transition to a pure-play automotive SaaS business is now largely complete. Today we introduce summary forecasts out to FY26 and reiterate the investment case. We see significant opportunity for Pinewood to grow its user base in the UK and internationally whilst generating high EBITDA margins and cash conversion. With a 24.5p special dividend embedded in the current price (payable Q1/Q2), the effective price today is 12.3p. Based on the Group’s FY27 target of £27m EBITDA, we estimate
Companies: Pinewood Technologies Group PLC
Zeus Capital
This morning’s trading statement from ZOO confirms that production companies are taking longer than expected to complete projects. This follows the resumption of new production after the industry-wide strikes ended in November 2023. The anticipated January ramp-up has yet to fully materialise, with entertainment projects expected to complete in January now moving into February and beyond. However, ZOO has been notified by its largest customer of a pipeline of orders that provides good visibility
The Great Correction of 2022 saw the share prices of streamers plunge after market leader Netflix reported a slowdown/fall in subscriber growth. Having formerly been seduced by hectic subscriber growth rates, investors quickly refocused, this time on fundamental metrics such as revenue, margins, profits and cashflow. Since then, streamers have continued to take a steadily greater share of viewing while linear TV continues to decline. But growth in streaming subscribers in the US and UK is now a
Companies: AMZN DIS WBD NFLX NFLX ITV STVG PARA AMZN DIS
Flutter reported softer than expected Q3 23 trading numbers, as unfavourable sports results weighed on the cross-market performance. The firm lost share in the US even as competition intensified in a seasonally light sports quarter, sending the stock sharply lower. However, we expect a strong recovery in the US in Q4 even as Australia is now expected to remain a pain point into FY24. We will trim our estimates by low to mid-single digits to factor in the soft showing.
Companies: Flutter Entertainment Plc
Companies: Rank Group Plc
Companies: CTG NXT JTC
During 2023, ME Group commenced the deployment of its next generation photobooths, which are integrated with the group’s newly developed proprietary software, gained market leadership in the Japanese photobooth market with an acquisition, continued to roll out laundry units with existing and new location partners, commenced a share buyback programme and gained entry into the FTSE 250. 2023 was a year of significant strategic and financial progress, with sales up 15%, EPS up 31% and net cash main
Companies: ME Group International plc
Cavendish
Share: