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Research Tree provides access to ongoing research coverage, media content and regulatory news on FUCHS PETROLUB SE. We currently have 3 research reports from 1 professional analysts.
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FUCHS PETROLUB SE
FUCHS PETROLUB SE
Revenues supported by Europe; guidance for 2016 confirmed
03 Nov 16
Q3 revenues were €566m (+7% yoy), slightly below consensus estimates. EBIT came in at €93m (+10% yoy), slightly below consensus. Net income was €65m, just marginally below consensus. Guidance 2016 has been confirmed: - growth of revenues at the top end of +7-11% range (“at the top end” is an improvement); +7-8% after currency effects; - EBIT increased to +4-6% (vs. +3-7%); - FCF before acquisition in the upper end of €170-200m range (here also “upper end” is an upgrade).
Q2 revenues and EBIT beat driven by Europe
01 Aug 16
Q2 revenues grew by 14% yoy, to €576m, driven by Europe (+27% yoy, to €372m). In Asia-Pacific & Africa, organic growth was more than offset by currency weakness. The Americas were also affected by South American currencies. The EBIT came in at €102m (+18% yoy), beating consensus (at €92m). In Europe (+20%), growth was supported by the recent acquisitions (Pentosin and Statoil Fuel & Retail Lubricants). However, Asia posted a 7% decline, largely due to currency weakness and soft Australia and South Africa. The Americas were flat. The net income, at €68m, was slightly above consensus. Guidance 2016 has been confirmed: - Organic growth of revenues at +7-11%; - EBIT increase at +3-7%; - FCF before acquisition at €170-200m.
Initiating coverage on Fuchs Petrolub
06 Jul 16
Fuchs Petrolub (market cap.: €4.8bn) is the largest global independent manufacturer of lubricants. Fuchs’ strategy is based on differentiation, through a “specialised” positioning, differing from those of vertically-integrated mineral oil companies, which target broad sales channels (e.g. supermarkets or fuel stations). Fuchs focuses on technological leadership within niches and premium business segments. The company sells c. 10,000 KPUs and enjoys a c. 2% market share (the top 10 manufacturers have >50% by volume). We initiate coverage with a REDUCE recommendation and -9% downside. Fuchs Petrolub has built and sustains an economic moat by de-commoditising its offering while keeping a critical commercial scale. The margins are a result of and should be protected by the economic moat; moreover, an asset-light model concurs in underlying a structurally robust ROCE, regularly above 20%. The concerns relate to current valuation levels, with the company trading at 11.7x EV/EBITDA (vs. peers at 9.3x) and 18.5x P/E (vs. 16.8x); our DCF points to a -6% downside, assuming a growth of sales and EBITDA at 5.0% from 2019e to 2026e. Europe accounts for 59% of revenues, highlighting exposure to a GDP slowdown that may be not fully integrated in the stock price.
Innovate, specialise, integrate, globalise
01 Dec 16
Carclo has refocused investment in its established businesses (Technical Plastics and LED Technologies), where a differentiated offer and long-term relationships with customers provide good earnings visibility and more certainty of a return. This strategy delivered strong revenue and profits growth during H117. This growth appears set to continue, underpinned by long-term relationships with blue-chip customers. We leave our estimates and indicative valuation broadly unchanged and introduce our estimates for FY19.
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
30 Nov 16
Results have yet again beaten our forecasts and the management has now delivered the fourth consecutive year of earnings above expectations. The share price is up 41% over the last three months, and Treatt is steadily moving from commoditised sales to more value-added products. Its strategy of deep customer relationships is paying off, giving it a real competitive advantage and improving margins. The year finished strongly and momentum is due to continue in the traditionally seasonally weaker Q117. Our P&L forecasts are broadly maintained, but our fair value moves to 272p (from 240p) as a result of stronger cash flow.
N+1 Singer - Carclo - Trading in line; all divisions performing well
15 Nov 16
Trading remains positive with momentum strong in Plastics and LED. For those willing to look past the pension and dividend issues discussed previously (or for those who think bond yields will now start to help the situation), we feel that there is an attractive investment case at these levels (P/E of c.10x March 17). We remain at Buy.