Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SYNGENTA AG-REG. We currently have 11 research reports from 2 professional analysts.
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FY16: a transition year
08 Feb 17
Revenues in FY16 reached US$12,790m (-5% and -2% at CER), EBITDA US$2,659m (-4%m, +2% at CER), operating income US$1,647m (-11%) and net income US$1,178m (-12%). Net debt at the end of FY16 was US$2.3bn (US$3.09bn in FY15). No regular dividend will be proposed at the AGM in June (with a CHF5 dividend to be paid conditional upon and prior to the first settlement of the transaction. The expected closing of the deal with ChemChina is in Q2. For FY17, management expects a low single-digit sales growth at CER and an improvement in the group’s EBITDA margin.
Q3 in line. Doubts on the ChemChina offer ?
25 Oct 16
Syngenta released Q3 sales, which reached US$2.524m (-3% both published and at CER) bringing 9m sales to US$9,618m (-6% and -3% at CER). At CER, regional sales (i.e. excluding Lawn and Garden) were down 4% (prices up 3%, volumes down 7%) with a weak South America where the change in sales terms in Brazil (and weak insecticides) weighed again. The group reiterated its full-year guidance of a low single-digit decline in sales, with an EBITDA margin at « around last year’s level ». The group also indicated that they now expect the regulatory process of the ChemChina offer to extend into Q1 17.
Q1 trading statement: rather weak as expected
20 Apr 16
Sales reached US$3.7bn (-7% and flat at CER, with prices up 2% and volumes down 2%). The group indicated it targets to maintain its sales level of last year at CER while profits should benefit from the cost-cutting programme (US$300m in FY16) and lower raw material costs. It also aims to deliver a US$1bn free cash flow, partly on the release of working capital.
FY15 in line. ChemChina offering CHF480/share.
03 Feb 16
Syngenta released FY15 results. They show sales down 11% to US$ 13.4bn (+1% at CER), EBITDA down 5% to US$2.78bn (+16% at CER), operating income down 13% to US$1.84bn and net income down 17% to US$1.34bn. Free cash flow (before M&A) was US$0.8bn. The proposed dividend is CHF11 (unchanged). For FY16, the group aims at "improving profitability on the basis of its AOL programme" (Accelerating Operational Leverage), which is a rather vague statement.
27 Feb 17
Treatt has yet again beaten expectations by delivering an exceptionally strong start to FY17 despite Q1 typically being a seasonally weak quarter. The success is across the board and has led to a surprise trading statement (23 February). We upgrade our forecasts to reflect the strong sales growth and also the margin improvement as Treatt moves further up the value chain. Our fair value increases to 350p (from 293p) as a result.
Suffering CropScience, operating CF’s tide is high
22 Feb 17
Bayer reported +2% (organic: +4%) higher sales at €46,769m and the gross profit margin improved from 54.4% to 56.6% in 2016. EBITDA rose +13% to €10,785m and net profit attributable to shareholders came in at €4,531m, up by +10%. Operating CF (+32% to €9,089m) benefited from the good operating basis and higher D/A (+12%), but the significantly lower NWC outflow (€-149m after €-817m) and the contribution from discontinued operations (Diabetes Care and CS Consumer) were the afterburner. Investing CF reflects the company’s willingness to hoard cash for the Monsanto takeover as it moved from €-2,762m to €-8,729m, primarily due to the outflows for current financial assets (€-5,645m after €-344m). Financing CF (€-350m after €-3,974m) saw a strong inflow from capital contributions and lower net gross debt repayments (€-730m after €-2,929m). Management will propose a +8% higher dividend of €2.70 (€2.50) per share at the AGM on 28 April 2017. Management gave a detailed 2017 guidance and expects sales to increase to over €49bn. EBITDA before one-offs is seen to increase by a mid single-digit percentage and core earnings per share from continuing operations by a mid single-digit percentage as well.
What a Treatt
18 Jan 17
Treatt is steadily transforming itself from a seller of flavour and fragrance-based commodities to a value-added ingredients supplier. The strategy of deep customer knowledge is paying off, leading to stronger relationships, a real competitive advantage and greater profitability, with EBIT margins increasing from 9.6% in 2014 to 10.8% in 2016. Management has delivered four consecutive years of earnings above expectations and the momentum remains strong. Our DCF analysis calculates a fair value of 293p, supported by benchmark analysis that places the stock at a c 30% discount to its peer group.
Still solid, but not perfect in an unadjusted, real world
23 Feb 17
Henkel increased sales by +4% (organic: +3%) to €18,714m, the gross profit margin weakened 30bp to 47.9% in 2016. EBITDA moved up +8% to €3,345m and net profit attributable to shareholders came in at €2,053m, +7% higher. Operating CF strongly increased +20% to €2,850m seeing a higher operating basis and a stronger NWC inflow (€281m after €20) due to higher payables as well as other liabilities and provisions. Investing CF (€-4,250m after €-893m) was clearly impacted by acquisition-related costs (€-3,727m after €-322m) for e.g. Sun Products. Financing CF swung from €-1,555m to €1,678m primarily due to the financing measures in the context of the large acquisition, which had been fully debt and cash financed as net gross debt repayment of €-1,025m swung to net gross debt issuance of €2,740m. Management proposes a +10% higher dividend of €1.60 (€1.45) per share at the AGM on 6 April 2017. For 2017, management expects organic sales growth of 2-4% with all divisions in this range, an adjusted EBIT of >17.0% and an adjusted EPS growth of 7-9%.
N+1 Singer - Strategy - Best Ideas 2017
04 Jan 17
Today we publish our Best Ideas for 2017. We have chosen 12 stocks that we believe have excellent prospects in the current year, together with an in depth discussion of what we see as the key sector and market themes for 2017. Our top picks are Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec, Severfield. Please see the separate note for further details.
29 Nov 16
The prospect of Hilary Clinton creating an oversight panel with the power to impose a set of harsh enforcement rules to control aggressive pricing of pharmaceuticals in the US fell away with the election of Trump, leading to a 16% bounce in the NASDAQ Biotech index and an 8% increase in the US Pharma & Biotech index, some of which has already been given back.