Purmo Group: Earnings improve with efficiency measures and growth
We expect market weakness to push Purmo’s result slightly downwards this year. We believe that the efficiency program, market turning to growth and growth, especially, in the Solutions division, will support clear earnings growth in 2024-25. The recent hybrid bond resulted in a decrease of over 10% in our per share estimates for the next few years. Purmo’s valuation is moderate and we still find the expected return to be sufficient.
Purmo Group
Purmo Group develops solutions for indoor climate. The company provides heating and cooling solutions for residential buildings and premises, including radiators, towel warmers, underfloor heating, convectors, valves, and controls. The business is divided into a number of business areas and the solutions are used in industry and the real estate industry. Customers are found on a global level with the largest concentration in Europe. The products are aimed at corporate and private customers.
Read more on company pageKey Estimate Figures05.04.2023
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 904.1 | 862.4 | 887.4 |
growth-% | 7.18 % | -4.61 % | 2.89 % |
EBIT (adj.) | 60.7 | 55.7 | 67.6 |
EBIT-% (adj.) | 6.71 % | 6.46 % | 7.61 % |
EPS (adj.) | 0.85 | 0.66 | 0.86 |
Dividend | 0.35 | 0.35 | 0.35 |
Dividend % | 4.25 % | 3.11 % | 3.11 % |
P/E (adj.) | 9.70 | 17.12 | 13.07 |
EV/EBITDA | 8.00 | 12.66 | 7.36 |