Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on JC DECAUX SA. We currently have 7 research reports from 1 professional analysts.
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JC DECAUX SA
JC DECAUX SA
FY16 "annus horribilis"...
02 Mar 17
JCDecaux today reported poor FY16 results as expected. As a reminder, the group already had released its FY16 revenues at the end of January (up 5.8% to €3,392.8m adjusted, i.e. before applying IFRS11 and +3.3% organically; please refer to our 27 January Latest). FY16 consolidated adjusted OP (i.e. before IFRS11 or, i.e. proportionately consolidating JVs instead of under the equity method) reached €646.5m, down 7%, in line with our forecasts (€650m) and versus €695.2m in FY15. This implies a 260bp declining operating margin to 19.1% compared to 21.7% in FY15 and to our 19.2% forecast. Note that IFRS11 OP (i.e. figures retained in our model) are in line at €528.1m (AV was €533m), down 9.4% and reflecting a decline in profitability from 20.8% in FY15 to 17.8% (AV was 17.9%). The adjusted FCF also dropped by c.21% to €263.7m after higher growth capex (mainly linked to London and New York City Street Furniture digitalisation) and net income group share amounted €224.7m, down 3.9% and 5% above our expectations (€214m). The dividend per share is unchanged from the previous year at €0.56 (we had expected €0.59).
A FY16 ending above expectations...
27 Jan 17
JCDecaux announced FY16 adjusted revenues (i.e. before applying IFRS11) up 5.8% to €3,392.8m (+€185.2m), slightly exceeding our forecasts (€3,375m) and +3.3% organically (i.e. better than the “slightly below 3%” guidance for the full year). It was the first time since 2010 that each of the group’s three divisions had delivered positive organic revenue growth. Q4 was nearly flat on a non-IFRS basis (-0.11% to €982.8m) and declined by only 0.3% organically, when the guidance was for a -2% organic trend. Note that the full-year results as well as the Q1 17e guidance are due to be provided on 2 March.
Poor Q4 ahead and revised FY16e guidance
04 Nov 16
JCDecaux announced Q3 adjusted revenues (i.e. before applying IFRS11) up 3.8% to €792.7m (+€28.7m; slightly under consensus expectations) and +1.5% organically (from a rather unfavourable basis of comparison as Q3 15 was up +4.3% organically). The quarter lfl performance was driven by Street Furniture (+6%; 43% total adjusted revenues), while Billboard improved by 1.1% and Transport (42% total) declined by 2.4% lfl, impacted by Asia Pacific and North America (Washington airports contract loss). A “significant slowdown” was also highlighted in Greater China (an important market for the group, generating c.19% of total revenues). Overall, the consolidated 9 months organic adjusted revenue growth reached +4.8% (with growth across the board) but management is guiding for a FY16e organic and adjusted top-line performance revised downward to “slightly below 3%”, with Q4 anticipated to decline organically by around 2%.
Hurt by London bus shelter contract delays and CEMUSA's integration...
17 Aug 16
Coming after a particularly strong Q1 16 (+10.5% on an organic basis) and in line with its guidance, JCDecaux produced a lower Q2 16 with an adjusted (before applying IFRS11, i.e. including its pro-rata share in companies under joint control) top-line growing at +3.4% organically. H1 16 adjusted consolidated revenues improved by c.€158m or 10.8% to €1,617.3m (+6.6% organic) after a negative foreign exchange impact of €41.6m and a positive perimeter change of +€103m. Adjusted operating profit declined by 7.4% (-€21.2m) to €264.5m, i.e. a … 320bp drop in profitability (16.4% to 19.6%) due to Street Furniture (unexpected -790bp to 22.4%...). Free cash flow at €98.3m was down 10% compared to H1 15. Within a slowing macro-economic environment and increased uncertainties in the aftermath of the Brexit vote in the UK, management is guiding for low single-digit Q3 adjusted organic revenue growth…
A strong start to the year… expected to slowdown
11 May 16
JCDecaux reported Q1 16 revenues up 15.3% on an adjusted basis (i.e. before applying IFRS11) to €748.5m and up 10.5% on an organic basis, i.e. above the group’s guidance of “around +9%”. Conversely, the guidance is for a lower trend in Q2 16e with organic growth expected at only around +3%.
Boosting top-line growth while delaying the operating leverage
13 Nov 15
JCDecaux announced satisfactory Q3 adjusted revenues (i.e. before applying IFRS11), up 14.1% to €764m and +4.3% organically. The quarter like-for-like performance was driven by Transport (+9.7%; c.45% total adjusted revenues), while Street Furniture (c.40% total adjusted revenues) rose by 3.2% and Billboard declined by 5.9%, still affected by difficult market conditions in Russia. Overall, the consolidated 9 months organic adjusted revenue growth reached +3.4% and management is guiding for FY15e organic and adjusted performance "above 3%", with Q4 "in line with the first 9 months". Going forward, revenue growth will significantly benefit from the recent contract wins (namely the London bus shelter contract starting next year) and acquisitions (i.e. CEMUSA as well as the recently-announced acquisition of the LatAm business of Outfront).
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
10 Mar 17
We have run our new quantitative Slide Rule over the Support Services sector. Of the c.500 stocks we have ranked on a Quality, Value, Growth and Momentum basis in the small to mid-cap space, 21 Support Services stocks appear in the top 100. Fulcrum leads the pack, ranked no. 6 out of 500 (and not coincidentally our top pick for the year), closely followed by Brainjuicer (no.7), Sanne (no.8), Learning Technologies (no. 12) and Next Fifteen (no.16). These stocks have high ROCE on both an EBIT and cash basis, strong growth prospects, earnings and share price momentum and valuations that, in this context, remain attractive. At the other end of the spectrum, HSS, Management Consulting, Serco, Mitie and Lakehouse appear towards the bottom of the rankings. Strong returns could, of course, be made if any of these turn their fortunes around, and management has been changed at Lakehouse, Serco and Mitie.
Small Cap Breakfast
23 Mar 17
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march.
21 Mar 17
NAHL has a track record of being highly innovative around changes in regulation and we believe the changing personal injury landscape presents an opportunity to build market share. The recent strategy statement provides forecast benchmarks to base long term investment decisions. Whilst the shares are up 21% over the last month, valuations remain very modest with a FY17 PE of just 6.5x and a dividend yield of 10.4%. We believe the shares are meaningfully oversold and expect a recovery bounce to over 200p short term.