Waiting for the market to pick up
Sitowise's Q1 results were operationally in line with our expectations. The company's outlook comments showed small signs of improvement for Buildings and Sweden, but overall the current year is still set to be challenging. Eventually, however, the market will pick up and the normalization of utilization rates should provide significant leverage for profitability improvements. Against this backdrop, the valuation of the stock looks low for the next few years, but uncertainty about the pace of market recovery limits the short-term upside in our view. Overall, the risk/reward ratio still leans towards the positive side.
Sitowise Group
Sitowise Group operates in the construction and infrastructure industry. The company specializes in the development of major construction projects. Examples of projects that the company carries out, on its own and in collaboration with other companies in the industry, include road and building construction, as well as pipe and underground constructions. The largest operations are in the Nordic market, where customers are found among corporate customers and public actors.
Read more on company pageKey Estimate Figures09/05
2023 | 24e | 25e | |
---|---|---|---|
Revenue | 210.9 | 204.1 | 213.5 |
growth-% | 3.18 % | -3.24 % | 4.60 % |
EBIT (adj.) | 13.6 | 12.8 | 17.6 |
EBIT-% (adj.) | 6.44 % | 6.25 % | 8.23 % |
EPS (adj.) | 0.21 | 0.18 | 0.30 |
Dividend | 0.00 | 0.06 | 0.10 |
Dividend % | 2.61 % | 4.35 % | |
P/E (adj.) | 15.21 | 12.44 | 7.63 |
EV/EBITDA | 8.45 | 6.53 | 5.36 |