Original-Research: R. Stahl AG - from NuWays AG
Classification of NuWays AG to R. Stahl AG
Company Name: R. Stahl AG
ISIN: DE000A1PHBB5
Reason for the research: Update
Recommendation: Kaufen
from: 18.04.2024
Target price: EUR 29.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Christian Sandherr
Strong FY23 results with a record high in revenue; chg. est.
Topic: R. Stahl confirmed its strong FY23 prelims and released a promising FY24e guidance supported by a solid preliminary first quarter revenue of EUR 84.7m.
To recap, FY23 sales increased by 21% yoy to a record high of EUR 331m, exceeding the guidance range of EUR 305-320m. The remarkable increase in revenue was carried by an unbroken demand for electrical explosion protection solutions in the LNG and gas industry as well as further improved supply chains and price increases. The adj. EBITDA grew by 73% to EUR 38.6m, hitting the guidance range of EUR 35-40m with a significantly improved margin of 11.7% (+3.6 pp) due to price increases as well as a good utilization of production capacities and targeted cost management.
What's new: Free Cashflow improved to EUR 0.3m (FY23: EUR -4.4m), due to a strong operating performance and despite a further expansion of working capital. For instance, inventories and prepayments rose 30% yoy to EUR 64m (FY22: EUR 37m) due to an increased stock in electronic materials. Furthermore, R. Stahl recognized a full impairment of the 25% stake in the Russian company ZAVOD Goreltex as expected (NuWays Update 16.02.2024). However, the EUR 10.3m write-off did not affect liquidity and adjusting for the impairment, EBT would have been EUR 12.3m (FY22: EUR 3.9m).
Solid Q1 sales with profitability on a high level: Preliminary sales in the first quarter came in at EUR 84.7m (eNuW: EUR 81m), an 8.5% increase yoy (Q1 FY23: EUR 78.1m). After a subdued order intake of EUR 74.5 in the fourth quarter, due to a soft chemical industry in the DACH region, order intake came in at EUR 92.3m, slightly below last year (Q1 2023: EUR 96.7m). Adj. EBITDA in the first quarter decreased 19% to EUR 8.4m (eNuW: EUR 7.9m), with a lower but still solid margin of 9.9% (-3.4 pp) due to higher personnel costs and a EUR 2m one-off from the implementation of the EXcelerate strategy program.
Conservative FY24e guidance: Management expects sales in the range of EUR 335-350m (eNuW: EUR 347m) and an adj. EBITDA of EUR 35-45m (eNuW: EUR 39.7m) supported by a strong demand from the LNG industry. In our view, the guidance seems reasonable thanks to R. Stahl having done its homework by implementing changes on the back of efficiency, structural trends kicking in and a high preliminary order backlog of EUR 123m at the end of Q1. We reiterate our BUY rating with a slightly reduced PT of EUR 29 (old: EUR 31), based on DCF.
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http://www.more-ir.de/d/29451.pdf
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www.nuways-ag.com/research.
Contact for questions
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.
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