Our target price is mechanically cut by allowing for a c. 23% drop in 2020 revenues and a best guess at zero profits. The small industrial conglomerate entered the COVID-19 crisis with a very strong balance sheet and a cool-headed owner and CEO. It should rebound as quickly as its underlying markets, notably the promising security/safety ones.
2020 earnings reflect the fact that a near 25% drop in revenue cannot help absorb fixed costs. We see only a partial recovery in 2021.
Our DCF is impacted by postponed growth and slower long-term expectations. The long-term growth expectations do not allow for a widening of EBITDA margins in rather competitive industries.
Download report : click here
View full research content : click here
The AlphaValue Corporate Services analysts are AlphaValue’s sector specialists. Their robust knowledge of the business models in their sectors enables the rapid generation of incisive, relevant research and advantageous interaction with the management teams.