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
Now pursuing organic growth ambitions
Target
Upside 68.7%
Price (€) 16.8
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
  12/19A 12/20E 12/21E 12/22E
EBITDA €M 60.0 87.0 63.6 78.7
Funds from operations (FFO) €M 38.8 60.6 43.1 53.2
Ordinary shareholders' equity €M 232 311 349 396
Gross debt €M 216 346 305 266
   o/w Less than 1 year - Gross debt €M 22.8 40.4 39.0 35.2
   o/w 1 to 5 year - Gross debt €M 112 263 246 226
   of which Y+2 €M 4.70 39.0 35.2 29.0
   of which Y+3 €M 3.10 35.2 29.0 160
   of which Y+4 €M 41.7 29.0 160 22.0
   of which Y+5 €M 62.0 160 22.0 15.0
   o/w Beyond 5 years - Gross debt €M 82.0 42.0 20.0 5.00
 + Gross Cash €M 67.5 176 136 98.1
 = Net debt / (cash) €M 149 169 169 168
Bank borrowings €M 132 120 108 103
Issued bonds €M 81.0 81.0 81.0 81.0
Financial leases liabilities €M 0.00 0.00 0.00 0.00
Other financing €M 3.10 144 116 82.0
Gearing (at book value) % 51.9 51.2 48.5 42.6
Adj. Net debt/EBITDA(R) x 2.48 1.95 2.66 2.14
Adjusted Gross Debt/EBITDA(R) x 3.92 4.16 5.06 3.60
Adj. gross debt/(Adj. gross debt+Equity) % 50.3 53.8 48.0 41.7
Ebit cover x 3.47 5.04 2.18 2.27
FFO/Gross Debt % 16.5 16.7 13.4 18.8
FFO/Net debt % 26.1 35.8 25.5 31.6
FCF/Adj. gross debt (%) % -0.64 15.8 8.82 11.0
(Gross cash+ "cash" FCF+undrawn)/ST debt x 2.89 5.79 4.21 3.67
"Cash" FCF/ST debt x 0.01 1.43 0.73 0.89
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 : 14/09/2020, Changes to Forecasts : 14/09/2020.