The company's Q2 performance was exceptionally good relative to expectations, as net sales and the result exceeded our estimates. The outlook was in line with expectations given the unchanged guidance. The company has so far coped well with rising costs and market challenges, although there are uncertainties, especially in the third quarter. After a strong year in 2021, we expect net sales growth and earnings to moderate due to, among other things, the economic situation, market demand normalizing and cost inflation. However, we feel the valuation is very moderate considering the current earnings level and potential and offers a clear upside.
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 Figures2022-08-11
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 843.6 | 943.5 | 907.3 |
growth-% | 25.69 % | 11.84 % | -3.84 % |
EBIT (adj.) | 73.7 | 69.4 | 73.7 |
EBIT-% (adj.) | 8.73 % | 7.36 % | 8.12 % |
EPS (adj.) | 1.78 | 1.07 | 1.15 |
Dividend | 0.36 | 0.37 | 0.40 |
Dividend % | 2.54 % | 5.23 % | 5.65 % |
P/E (adj.) | 7.96 | 6.60 | 6.16 |
EV/EBITDA | 24.28 | 5.38 | 4.32 |