Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PRYSMIAN SPA. We currently have 6 research reports from 1 professional analysts.
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Margin expansion driven by Telecoms and the Energy project
10 Nov 16
Prysmian reported 9M16 revenue of €5,660m with Q3 16 organic growth in line with H1 16 at +1.8% yoy. Like for Nexans, activity was marked by continued negative pressure on O&G with a 31.6% yoy organic decrease in the first 9M16 (and -20% in Q3 16) offset by strong Energy project sales (+20.9% in 9M16 and +16% in Q3 16) and, in particular, sales of submarine cables and systems. Telecom was also strong with +8.4% organic growth (of which +9.7% in Q3). Adjusted EBITDA climbed to €527m in 9M16, with the margin at 9.3% (8.5% at 30/09/2015). For the Q3 16 alone, the adjusted EBITDA margin reached 9.6%. FY16 guidance confirmed, with the target now at the upper end of the adjusted EBITDA range of €670-720m.
Solid H1 margins but disappointing free cash flow generation
29 Jul 16
Prysmian reported H1 16 results. Main facts: H1 16 revenue reached €3,785m, corresponding to a 1.8% organic change (but only 1.5% in Q2 16 alone) supported by Energy projects (+22.7%) and Telecoms (+5.8%). Adjusted EBITDA reached €347m, corresponding to a 9.2% margin (versus 8.4% in H1 15), slightly above expectations. The net profit increased by 59% to €124m (versus €78m). FCF excluding acquisitions was disappointing at €-176m versus €-97m last year due to WC variation. Prysmian confirmed guidance of adjusted EBITDA for FY16 in the range of €670-720m.
Q1 16 growth driven by Energy projects and telecoms
12 May 16
Prysmian reported its Q1 16 figures. Main facts: Revenue reached €1,810m in Q1 16, corresponding to a +2.3% organic increase including a strong contribution from Energy Projects (+26.4%) thanks to a positive performance by submarine cables and systems and strong high voltage underground sales. The telecoms business was up +3.3%, while the O&G segment was off 33.9% yoy. Adj. EBITDA at €150m corresponding to an 8.3% margin, sharply up from €120m (6.8% of sales) in Q1 15. The operating profit was €76m (versus €83m in Q1 15) due to the fair value change in metal derivatives, the fair value of stock options serving long-term incentive plans and impairment losses recognised against the assets of the new Oil & Gas segment. As a consequence, the net profit was also down from €42m last year to €40m in Q1 16. The net financial position was mostly unchanged at €1,038m (vs €1,040m at the end of 03/15). Adj. EBITDA guidance for 2016 is between €670m and €720m (AlphaValue’s current estimate is €684m) and in line with market expectations. All in all, a positive start to the year driven by Energy projects.
Progressive recovery is taking shape
25 Feb 16
Prysmian reported FY15 results perfectly in line with expectations, including an improved balance sheet situation. Revenue at €7,361m, corresponding to +5.3% organic growth, +5.9% excluding WL impact (+3.2% in Q4 15) thanks to sound execution in Energy projects (+18.2% organic growth ex. WL) and Telecoms (+9.9% organic growth yoy). The company reported adjusted EBITDA at €623m, above the mid-point of the guidance range (€590-640m), while net profit came in at €214m (+86% yoy) and net debt at €750m (vs €802m last year), without acquisitions the net financial debt would have been €529m. As usual, the company will provide an EBITDA guidance at the end of Q1 16, but stated that FX will have a negative impact, as well as Oil&Gas and Mining segments. Prysmian expects that demand in the cyclical businesses of medium voltage cables for utilities and building wires will record a slight volume recovery, an improving trend with growth in the Submarine business, while the Telecom business is expected to see continued growth in demand for optical fibre cables in 2016, albeit at a slower pace than in 2015.
EBITDA guidance lowered amid FX and cyclical weakness
06 Nov 15
Reasonable Q3 15 figures but the FY15 EBITDA guidance is slightly lowered. Prysmian posted 9M15 sales of €5,663m, corresponding to +6.9% organic growth with an adj. EBITDA of €473m (€488m ex WL) corresponding to an 8.5% margin. Prysmian reported strong growth in Energy projects (+19.6% yoy organically ex. WL for 9M15) and the award of the first submarine project in China. There was also a solid trend in Telecoms (+10.3% yoy for the 9M15) while the industrial segment stabilised. For Q3 15 alone, organic growth was +6.6% with €1,926m of revenue, while EBITDA was 8.2%. Energy projects grew 23.9% in Q3 15, accelerating again (+17.4% in H1 15), while Telecoms growth declined to 5.1% yoy (vs 13.1% in H1 15), E&I was also weaker in Q3 15 at +1.6% yoy (vs +5.3% in H1 15) but Industrial & Network components was up 1.4% yoy in Q3 15 a sequential improvement (-2.0% yoy in H1 15). The net financial position improved significantly to €955m (from €1,292m in Q3 14), reflecting a sharp reduction in working capital. FY 2015 guidance now targets "above mid-point" of the adjusted EBITDA range of €590–640m (€616–666m excluding WL) while the prior guidance was pointing at the top of the range (consensus €633m). The slightly lowered guidance is due to the softening of telecom and cyclical businesses in some countries, while Q4 is expected to be negatively impacted by the recent weakening of several currencies (mainly BRL, TRY, NOK, AUD).
FY15 guidances lifted amidst progress on WL execution
31 Jul 15
Prysmian reported sales of €3,737m in H1 15, a +13.7% yoy increase corresponding to +7.6% organic growth, enhanced by 8.0% organic growth in Q2 15 (vs 5.9% in Q1 15) and fuelled by solid growth in Energy Projects (+17.4% organic growth yoy ex. WL) and in the Telecom business (+13.1% growth organically). This was partly offset by -2% in Industrial & Network components, which was impacted by weak performances in the oil & gas sector and network components, while automotive suffered from strong competition. Energy & Infrastructure grew +5.3% in H1 15, but with an acceleration in Q2 (+7.7%) boosted by stronger growth in power distribution. The adjusted EBITDA reached €315m in H1 15 correponding to an 8.3% margin, on par with H1 14 (ex. WL). The adj. EBITDA was lower in Energy projects (14.5% in H1 15 vs 16.7% in H1 14), but improved in Energy & Infrastructure (+20bp to 4.3%) and mainly telecoms (EBITDA margin at 12.2% vs 8.8%, margin was a bit lower in Industrial & Network components (7.0% vs 7.7% last year). Prysmian reported the recovery in the WL project is ahead of expectations, allowing it to make a positive revision of €35m to the initial impact estimated. The group now aims to position itself at the top end of the range of €590-640m (vs €560-610m) for the FY15 EBITDA.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
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.
Time to go over weight
24 Feb 17
We believe equity investors are taking an unnecessarily cautious stance on the construction sector. Forward looking indicators (e.g. consumer confidence, construction PMIs and housing starts) point to a stable market and recent sales LFL are particularly encouraging (e.g. Marshalls). Near term margins may suffer temporary distortions as inflationary pressures build. However, history has shown that modest input cost inflation is actually a positive for earnings growth in the sector. Therefore, as we move into 2018, margin trends are likely to surprise on the upside.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced