SFPI Group

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SFPI Group ^CR	Bloomberg SFPI FP
Misc. Bldg & Construct Prod / France	Web Site \| Investors Relation

Hands-on conglomerate with a locks forte

Pros

SFPI combines exposure to capital goods and construction. Its growth hinges on the continuing need for security, energy savings, IoT, renovation and increasing regulation
No capital increase despite the successive crises and a policy to at least maintain the dividend (only briefly dropped in COVID times) are two differentiating elements in the small cap universe
Excellent track record in terms of acquisitions (more than 80 implemented): SFPI Group operates in niche, fragmented markets with bolt-on acquisitions to restart when prices adjust lower

Cons

SFPI is a by-word for industrial caution. This has kept the lid on debt-financed growth, but proved a formidable plus in COVID times
SFPI is France-centred (c.60% of sales), but the company is willing to accelerate in Europe as well as globally but on a longer horizon.
Management efforts to aggregate environmental data at group level are likely to deliver only from 2022 leading to the current weak sustainability ratings

Updates

30/05/23	EPS	We have trimmed our 2023 forecasts so...
30/05/23	NAV	While the value of the main legs of SFPI i...
30/05/23	DCF	Allowing for the restructuring of MAC imp...
26/04/23	Earnings	Disappointing 2022 heralds a more tightl...
10/10/22	Earnings	H1 sees contracting margins
10/10/22	EPS	Despite sustained sales growth, mostly d...
10/10/22	DCF	Our DCF resets a bit lower as a result of ...
17/05/22	Target	The target price benefits from extremely s...
17/05/22	EPS	EPS mechanically benefit from the excell...
17/05/22	NAV	The NAV benefits from repeated strong r...
27/04/22	Earnings	Great 2021, solid start to 2022, €600m re...
24/09/21	Other news	In excellent shape
24/09/21	EPS	With sales back to 2019 levels and opera...
24/09/21	DCF	The DCF benefits from a stronger than ex...
04/06/21	Earnings	Sound business shows its mettle in Covid...
04/06/21	Target	The sharp increase in the target price is l...
04/06/21	EPS	The 2021 and 2022 jump in earnings exp...
04/06/21	NAV	Paradoxically the NAV increase stems le...
04/06/21	DCF	The DCF too is helped by the stronger ne...
28/09/20	Earnings	H1 behind with limited scars; H2 partial re...
26/09/20	EPS	The H1 20 delivery was a good surprise ...
26/09/20	DCF	The DCF mechanically benefits from a re...
27/05/20	Target	Our target price is mechanically cut by all...
27/05/20	EPS	2020 earnings reflect the fact that a near...
27/05/20	DCF	Our DCF is impacted by postponed growt...
20/05/20	Earnings	As fit as possible
07/10/19	Earnings	H1 19: P&L disappoints but cash flow ge...
07/10/19	EPS	Following the somewhat disappointing H...
07/10/19	NAV	We have lowered the reference multiple, ...
07/10/19	DCF	We have decreased our long-term FCF c...
07/05/19	EPS	As a result of the negative surprise in FY...
07/05/19	NAV	We have lowered the reference multiples...
07/05/19	DCF	The lower expected EBIT than previously...
24/04/19	Earnings	SFPI disappoints in 2018 but prepares its...
03/03/19	Target	Following the publication of FY18 sales, ...
05/12/18	Initiation cov.	Dedicated to safety for people, goods an...

Key Data

	12/21A	12/22A	12/23E	12/24E	12/25E
Adjusted P/E (x)	7.99	9.39	5.94	5.46	4.60
Dividend yield (%)	2.98	1.91	3.36	3.64	3.92
EV/EBITDA(R) (x)	3.89	4.92	3.04	2.77	2.34
Adjusted EPS (€)	0.34	0.28	0.30	0.33	0.39
Growth in EPS (%)	45.1	-16.9	7.67	8.72	18.8
Dividend (€)	0.08	0.05	0.06	0.07	0.07
Sales (€M)	569	629	715	740	787
EBIT margin (%)	7.66	5.72	5.71	5.95	6.22
Attributable net profit (€M)	32.5	21.7	25.7	28.1	33.8
ROE (after tax) (%)	14.5	9.03	9.95	10.1	11.3
Gearing (%)	-25.5	-14.0	-1.63	-4.11	-8.11
Last Div. Indic € 0.08 payment 20/06/2023