Purmo Group: Cost savings support the bottom line
Purmo's Q2 net sales fell significantly and missed expectations. However, cost savings and other margin management supported a small margin improvement year-on-year, but the result was also below expectations. The company reiterated its guidance for the full year of adjusted EBITDA being at last year's level. We lowered our estimates based on the report and now expect a result of EUR 93 million, exactly the same as last year. The company's valuation is at the lower end of acceptable multiples for this year, and we believe that earnings growth in the coming years will support the stock.
Purmo Group
Purmo Group develops solutions for indoor climate. The company provides heating and cooling solutions for residential buildings and premises, including radiators, towel warmers, underfloor heating, convectors, valves, and controls. The business is divided into a number of business areas and the solutions are used in industry and the real estate industry. Customers are found on a global level with the largest concentration in Europe. The products are aimed at corporate and private customers.
Read more on company pageKey Estimate Figures20.07.2023
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 904.1 | 769.1 | 803.2 |
growth-% | 7.18 % | -14.93 % | 4.43 % |
EBIT (adj.) | 60.7 | 61.1 | 67.4 |
EBIT-% (adj.) | 6.71 % | 7.94 % | 8.40 % |
EPS (adj.) | 0.85 | 0.72 | 0.82 |
Dividend | 0.35 | 0.35 | 0.35 |
Dividend % | 4.25 % | 3.57 % | 3.57 % |
P/E (adj.) | 9.70 | 13.70 | 11.92 |
EV/EBITDA | 8.00 | 10.06 | 6.61 |