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Research Tree provides access to ongoing research coverage, media content and regulatory news on FUCHS PETROLUB SE. We currently have 5 research reports from 1 professional analysts.
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FUCHS PETROLUB SE
FUCHS PETROLUB SE
Outlook 2017: further growth in revenues and earnings
16 Feb 17
Q4 revenues came in at €564m (+4.4% yoy), bringing the annual growth to 9.0% as announced in January. The EBIT for the quarter was €94m (+15% yoy), also in line with January’s guidance. Outlook 2017: further growth in revenues and earnings, based on a generally positive economic outlook despite the risks in important regions.
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.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Continued progress since interims
01 Feb 17
Carclo has announced that H217 trading remains strong and the outlook for the full year is in line with its expectations. Growth is being driven by the two larger divisions, Technical Plastics (TP) and LED Technologies, while the Aerospace division is experiencing stable trading conditions. We leave our estimates unchanged, but note potential currency upside should foreign exchange rates remain at current levels for the remainder of FY17.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Small Cap Breakfast
14 Dec 16
Ultimate Products—The Telegraph reports Jim McCarthy, former chief of Poundland has been appointed Chairman of Ultimate Products ahead of a £100m listing in H1 2017. Ultimate Products owns the Beldray cleaning brand and the licence to sell Russell Hobbs and Salter electrical products in the UK. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
N+1 Singer - Victrex - Strong Q4 delivered – meeting FY expectations
11 Oct 16
Victrex’ year end update confirms a strong Q4 performance, driven by the anticipated surge in demand from its large consumer electronics programme. Full year volume and revenue are both a touch ahead of our forecasts and consensus expectations. Invibio has delivered a steady year, in line with expectations, and the Magma oil & gas project has delivered its first meaningful revenues of over £1m. The outlook reiterates previous caution over the consumer electronics outlook but we believe this is now reflected in most analysts’ forecasts, including our own. There is no mention of currency, but this is clearly a strong tailwind for FY17 and, if current rates persist, into FY18. Overall, today’s statement should be well received. There was a lot to do in Q4 and Victrex has delivered it. In our view, the FY17 rating of 16x with a 6% yield (inc. 3% special) represents an attractive entry point for this high quality group.