AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

Chargeurs

CR
Bloomberg   CRI FP
Holding Companies  /  France  Web Site   |   Investors Relation
Carrying on with strategic acquisitions
Target
Upside 75.3%
Price (€) 17.6
Market Cap (€M) 406
Debt

From 2014, Chargeurs has been running a net cash position down to c.€9m in 2017 and shifting to a €92m net debt as a result of the 2017 and 2018 acquisitions.

Funding has not been an issue as Chargeurs’ management wisely accumulated excess resources to that effect through a combination of private debt placings (Euro PP) between 2016 and 2017 and various credit lines. Most notably, Chargeurs syndicated a bank loan of €230m at the close of 2018. While the group is left with significant dry powder to go and purchase its growth, its 2021 objective of reaching €1bn in sales cannot be exclusively debt funded, with the company feeling comfortable with a net debt/EBITDA ratio below 2.5x. On a funding scenario used in AlphaValue modelling where Chargeurs raises €100m in new equity by 2020, its net debt/EBITDA ratio would remain below 1.5x.

Funding - Liquidity
  12/18A 12/19E 12/20E 12/21E
EBITDA €M 59.8 57.2 80.1 102
Funds from operations (FFO) €M 36.5 39.6 57.7 72.4
Ordinary shareholders' equity €M 237 253 376 412
Gross debt €M 181 174 172 170
   o/w Less than 1 year - Gross debt €M 12.3 7.00 7.50 3.30
   o/w 1 to 5 year - Gross debt €M 119 127 130 136
   of which Y+2 €M 7.00 7.50 3.30 101
   of which Y+3 €M 7.50 3.30 101 15.0
   of which Y+4 €M 3.30 101 15.0 10.0
   of which Y+5 €M 101 15.0 10.0 10.0
   o/w Beyond 5 years - Gross debt €M 50.0 40.0 35.0 30.0
 + Gross Cash €M 89.2 -0.46 42.8 -1.48
 = Net debt / (cash) €M 92.2 175 129 171
Bank borrowings €M 70.0 70.0 70.0 70.0
Issued bonds €M 81.0 81.0 81.0 81.0
Financial leases liabilities €M 13.4 13.4 13.4 13.4
Other financing €M 17.0 9.70 7.70 5.20
Gearing (at book value) % 17.6 52.7 40.4 36.5
Adj. Net debt/EBITDA(R) x 1.54 3.05 1.61 1.67
Adjusted Gross Debt/EBITDA(R) x 3.33 3.37 2.43 1.89
Adj. gross debt/(Adj. gross debt+Equity) % 45.7 43.2 34.1 31.9
Ebit cover x 4.67 3.55 4.12 4.29
FFO/Gross Debt % 18.3 20.5 29.6 37.6
FFO/Net debt % 39.6 22.7 44.6 42.3
FCF/Adj. gross debt (%) % -6.02 3.17 18.2 28.1
(Gross cash+ "cash" FCF+undrawn)/ST debt x 6.28 0.81 10.4 16.0
"Cash" FCF/ST debt x -0.84 0.82 4.70 16.3
Credit Risk
Covenants
BeginEndTriggerConditionConsequence
30/06/2017 31/12/2023 Net debt/Ebitda(R) < 3.50 Early repayment
30/06/2017 31/12/2023 Gearing < 85.0 Early repayment
Changes to Story : 18/11/2019, Changes to Forecasts : 18/11/2019.