Original-Research: R. STAHL AG - from NuWays AG
09.08.2024 / 09:02 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.
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Classification of NuWays AG to R. STAHL AG
Company Name: R. STAHL AG
ISIN: DE000A1PHBB5
Reason for the research: Update
Recommendation: BUY
from: 09.08.2024
Target price: EUR 29.00
Last rating change:
Analyst: Christian Sandherr
Strong Q2 numbers // FY guidance confirmed; chg. est.
Topic: R. Stahl released strong Q2 numbers with sales and EBITDA above our estimates. Management confirmed its FY24e guidance, which looks well in reach (eNuW).
Q2 sales grew 16.4% yoy to EUR 89.3m (eNuW: EUR 87m), driven by a solid order backlog of EUR 122m at the end of Q1 and a further ease in supply chains. Q2 adj. EBITDA increased disproportionately by 25.7% yoy to EUR 10.9m (eNuW: EUR 10.2m) thanks to a lower cost of materials ratio (30.6% vs. 34.4% in Q2'23) and despite higher personnel costs due to wage inflation. Further, other operating expenses came in unusually high (EUR 16.4m vs. EUR 13.9m in Q2'23) due to negative one-offs from consulting costs incurred in connection with the EXcelerate strategy program, which should come down in Q3 and Q4. The adj. EBITDA margin increased by 0.9pp yoy to 12.2% and remains at a solid level.
Solid order intake. After a subdued order intake in H2'23, driven by active destocking activities from customers due to an increasing stabilization of global supply chains and a muted European chemical industry, order intake in H1'24 recovered from a low level (EUR 181m in H1'24 vs. EUR 157m in H2'23). Q2 order intake came in at EUR 88.5m, slightly below the EUR 89.3m last year but significantly above Q3&Q4'23. Order intake was supported by a slight recovery in the chemical industry and new orders in the nuclear sector (c. EUR 3m as stated in the CC). Book-to-bill came in at a healthy 0.99 leading to a solid order backlog of EUR 121m.
Guidance confirmed: Management confirmed its FY24e guidance with sales between EUR 335 - 350m and adj. EBITDA in the range of EUR 35 - 45m. Supported by a strong H1 and a solid order backlog, it seems plausible for R. Stahl to reach its guidance in our view (eNuW: sales EUR 349; adj. EBITDA EUR 40m). Even more importantly, R. Stahl's mid-term prospects remain bright as the company strongly benefits from (1) its superior market share along the LNG value chain (liquefaction and shipping: 75%, natural gas production: 50% and regasification 25%), (2) a rising need for production automation across offshore oil and gas rigs, and production plants of several industries, and (3) the ongoing nuclear renaissance across Europe.
Hence, R. Stahl is well positioned to gradually improve margins, returns and cash flow generation. We reiterate our BUY rating with an unchanged EUR 29 PT, based on DCF.
You can download the research here: http://www.more-ir.de/d/30411.pdf For additional information visit our website: 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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1964455 09.08.2024 CET/CEST
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