Stockmann (Initiation of Coverage): Department stores still a source of grief
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We expect Lindex's result to fall from the exceptionally high level in recent years and department stores to remain clearly cash flow negative in coming years, resulting in a cash-adjusted P/E of about 12x in 2023-24. We believe this is a neutral level and do not expect significant earnings growth even in the medium term. Lindex's large logistics investment in 2022-23 will reduce the company's net cash and we do not expect dividends for the next few years.
Lindex Group
Lindex Group operates in the retail industry. The Group manages a number of stores around larger shopping centers and commercial premises located in the Nordic market. The Group is a reseller of several brands and the range consists of shoes and associated accessories. The company is headquartered in Helsinki.
Read more on company pageKey Estimate Figures2022-11-17
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 899.0 | 989.1 | 970.0 |
growth-% | 13.70 % | 10.02 % | -1.93 % |
EBIT (adj.) | 68.3 | 81.2 | 64.0 |
EBIT-% (adj.) | 7.60 % | 8.21 % | 6.60 % |
EPS (adj.) | 0.32 | 0.30 | 0.17 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | 6.68 | 11.12 | 19.88 |
EV/EBITDA | 4.97 | 3.90 | 6.44 |
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