Purmo Group: Stable earnings outlook for this year is a relief
Purmo's Q4 result was mainly in line with the company's previous estimates and decreased clearly from the comparison period, but exceeded our expectations. The company’s guidance for 2023 is adjusted EBITDA at roughly 2022 level which we feel was a relief. However, our estimate changes were minor and our 2023 estimate is at the lower end of the range. We consider the company's valuation to be neutral, but earnings growth expectations and dividend yield provide a sufficient expected return.
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 Figures2022-12-09
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 843.6 | 904.0 | 872.4 |
growth-% | 25.68 % | 7.16 % | -3.50 % |
EBIT (adj.) | 73.7 | 58.4 | 54.6 |
EBIT-% (adj.) | 8.73 % | 6.46 % | 6.26 % |
EPS (adj.) | 1.78 | 0.79 | 0.77 |
Dividend | 0.36 | 0.35 | 0.35 |
Dividend % | 2.54 % | 3.56 % | 3.56 % |
P/E (adj.) | 7.96 | 12.43 | 12.73 |
EV/EBITDA | 24.30 | 8.41 | 11.67 |