AlphaValue Corporate Services
COVERAGE ABOUT US CONTACT FR
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

SFPI Group

CR 		Bloomberg   SFPI FP
Misc. Bldg & Construct Prod  /  France  Web Site   |   Investors Relation
Hands-on conglomerate with a locks forte
Target
Upside 124%
Price (€) 1.80
Target Price (€) 4.03
Market Cap (€M) 179
Perf. 1W: -1.53%
Perf. 1M: -1.21%
Perf. 3M: -12.1%
Perf Ytd: -16.8%
10 day relative perf. to stoxx600: -1.01%
20 day relative perf. to stoxx600: -0.55%
Target Change07/05/2019
Download

Change in Target Price€ 3.54 vs 4.10-13.9%

Change in EPS2019 : € 0.21 vs 0.23-6.28%
2020 : € 0.23 vs 0.26-9.82%

As a result of the negative surprise in FY18, we have reduced our EPS forecasts for FY19 onwards since we now take a more cautious view on the recovery: +25bp increase in the EBIT margin per year vs previously a +50bp increase in the EBIT margin per year. Automatically, this has a stronger impact on FY20 (-50bp impact on EBIT margin) than on FY19 (25bp impact on the EBIT margin). This change alone explains most of the change in our EPS.
Change in NAV€ 4.06 vs 4.42-8.22%

We have lowered the reference multiples as we have reviewed our assumptions on the improvement in the EBIT margin from 50bp per year to 25bp. Note that we have not changed the multiples for each division with the exception of DOM security, which has seen its multiple decrease from 11x to 10x.
Change in DCF€ 4.12 vs 4.55-9.48%

The lower expected EBIT than previously forecasted explains most of the decrease in our DCF. We have left the 2022-29 growth forecasts as well as the capex forecasts unchanged, which are the two most important parameters in a DCF valuation.
.