Purmo Group: Visibility for the rest of the year
Purmo’s Q1 performance was exceptionally good relative to expectations, as net sales and the result exceeded our estimates. The outlook also improved clearly with the guidance and so far, Purmo has managed excellently with increased costs and availability challenges related to materials. After a strong year of growth, we expect net sales growth and the result to moderate, e.g., due to the geopolitical situation, stabilization of market demand and cost inflation, but the earnings level will remain at a good level also according to the guidance. 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 Figures2022-05-12
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 843.6 | 909.6 | 888.0 |
growth-% | 25.69 % | 7.82 % | -2.37 % |
EBIT (adj.) | 73.7 | 69.1 | 72.2 |
EBIT-% (adj.) | 8.73 % | 7.60 % | 8.13 % |
EPS (adj.) | 1.76 | 1.12 | 1.14 |
Dividend | 0.36 | 0.37 | 0.40 |
Dividend % | 2.54 % | 3.30 % | 3.57 % |
P/E (adj.) | 8.09 | 9.98 | 9.85 |
EV/EBITDA | 24.28 | 7.00 | 5.96 |