Kreate: Not the new normal
Infrastructure builder Kreate has been one of the fastest growing and also one of the most profitable companies in its sector. The growth has been supported by the company's expertise in demanding infrastructure construction projects, the successful implementation of which has created a good market position for the company in its own specialized field. However, above-market growth has taken its toll as profitability has been eroded by rising costs (materials, labor, wages) eating into project margins. However, we believe that current profitability reflects the bottom of the cycle rather than the new normal. With a combination of normalizing earnings and a moderate valuation, we continue to see the risk/return ratio of the Kreate share as good.
Kreate Group
Kreate Group is active in the infrastructure sector. The company offers a wide range of services in the development of demanding industrial projects. Examples of services include repair and construction of bridges, track construction for trains and rails, as well as mass excavation and crushing of stone for extensions of new motorways. The largest business operations are in the Nordic market.
Read more on company pageKey Estimate Figures27.11.2023
2022 | 23e | 24e | |
---|---|---|---|
Omsætning | 273,9 | 326,4 | 305,5 |
vækst-% | 15,30 % | 19,15 % | -6,39 % |
EBIT (adj.) | 8,6 | 7,0 | 9,4 |
EBIT-% (adj.) | 3,14 % | 2,15 % | 3,09 % |
EPS (adj.) | 0,64 | 0,40 | 0,63 |
Udbytte | 0,46 | 0,30 | 0,35 |
Udbytte % | 5,69 % | 3,74 % | 4,36 % |
P/E (adj.) | 12,73 | 20,03 | 12,80 |
EV/EBITDA | 7,80 | 8,15 | 6,75 |