23.11.2023-
Original-Research: Einhell Germany AG (von NuWays AG): BUY
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Original-Research: Einhell Germany AG - von NuWays AG
Einstufung von NuWays AG zu Einhell Germany AG
Unternehmen: Einhell Germany AG
ISIN: DE0005654933
Anlass der Studie: Q3 Review
Empfehlung: BUY
seit: 23.11.2023
Kursziel: EUR 225,00
Kursziel auf Sicht von: 12 Monaten
Letzte Ratingänderung:
Analyst: Christian Salis
Final Q3 slightly better than expected // Bottom-line stays strong
Einhell released better-than-expected final Q3 results, reflecting that the
company executes tight cost control amid a challenging market environment.
Q3 sales decreased by 5% yoy to EUR 230m (prelim: EUR 225m). While Eastern
Europe showed strong growth of 30% yoy, DACH decreased by 8% yoy as DIY
partners remained cautious to buy inventories. Positively, however, the
Power X-Change trend remained fully intact, growing by 3pp yoy to 45% of
group sales. Einhell confirmed its adjusted FY 23 guidance of EUR
1.0bn revenue. This implies an 8% sales growth yoy in Q4, which we consider
ambitious and therefore sit a notch lower at EUR 991m, implying 4% sales
growth against an easier comparable base.
Importantly, profitability remained at a healthy level. A significantly
improved gross margin of 39.7% (+3.7pp yoy) on the back of favorable mix
(i.e. higher share of PXC) and price increases almost fully compensated for
negative operating leverage and cost inflation. Hence, EBT margin decreased
by only 0.7pp yoy to 8.0%, still significantly exceeding pre-pandemic
levels (Q3 19: 4.5%). This also explains why Einhell confirmed its FY 23
bottom-line range of 8.0-8.5% ("low end", eNuW: 8.0%) despite
the weaker top-line.
In Q4, Einhell is seen to show a gradual recovery on both top- and
bottom-line. During our recent roadshow, CFO Teichert indicated that
discussions with DIY partners indicate a recovery in DACH while Einhell
continues to gain market share. In FY 24e, Einhell should return to growth
on the back of easier comps, sustained market share gains, positive M&A and
FX effects. Hence, we model 6% sales growth yoy to EUR 1,050m in FY 24e and
EBT margin is seen to recover slightly by 0.2pp yoy to 8.2% thanks to lower
input costs, positive mix effects and FX, which should turn into a tailwind
latest in H2 2024e.
Strategically, the US market should provide an attractive growth
opportunity. Following its successful international expansion in e.g.
Australia and Canada, a potential market entry could happen already in FY
24 via Einhell's proven success model: Gaining market access through the
acquisition of a small- to mid-sized local DIY brand and gradually
replacing the assortment with best-in-class price/value PXC products. The
US market looks attractive given that it is by far the largest DIY market
globally and Einhell's major rival Ryobi seems to neglect the online
channel as well as Tier-2/3 DIY stores, which Einhell aims to tackle.
Against this backdrop, valuation looks undemanding, trading at 8.9x PER 24e
and an 11.4% FCF yield. BUY, PT EUR 225.00, based on DCF.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/28379.pdf
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
www.nuways-ag.com/research.
Kontakt für Rückfragen
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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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
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