Classification of NuWays AG to Semperit AG Holding
| Company Name: |
Semperit AG Holding |
| ISIN: |
AT0000785555 |
| |
| Reason for the research: |
Initiation |
| Recommendation: |
BUY |
| from: |
06.05.2025 |
| Target price: |
EUR 18.20 |
| Target price on sight of: |
12 months |
| Last rating change: |
|
| Analyst: |
Christian Sandherr |
Overlooked niche player, Initiating coverage with BUYSemperit is a specialized niche player for rubber products in various industrial applications. Its most important products among others are hoses, liquid silicone rubber products and tools, seals, escalator handrails, and conveyor belts, where
Semperit holds strong positions in
Europe and other regions.
The business can be subdivided into the two segments Semperit Industrial Applications (SIA) and Semperit Engineered Applications (SEA). Both segments follow different strategies.
SIA is a commoditized business where
Semperit aims for a high degree of standardization and competitive quality based on cost leadership. As
Semperit is the third largest producer of hydraulic hoses globally and the second largest in
Europe, the company can substantially benefit from
economies of scale.
SEA on the other hand is characterized by a high level of customization and innovation.
Semperit can excel thanks to its
extensive know-how in rubber processing based on over 200 years of experience in the rubber market. Over the years, the company has developed hundreds of different mixtures of rubber, which are hard to copy for its competitors. Further, years of successful partnerships with its customers and a consistent high product quality created a positive
brand perception.
Semperit's business is cyclical and currently at the bottom of the cycle after three years of slowdown. Nevertheless, the company has not been idle but
invested massively in expanding its capacities to come back even stronger in the next upswing. In addition,
Semperit acquired the highly profitable and fast-growing RICO group in 2023 (14% sales CAGR 2010-2022), a specialist in the liquid silicone sector. Although FY25e could still be challenging, we expect a medium-term sales CAGR of 3.7% (FY24-FY27e) and an EBITDA CAGR of 4.5% (FY24-FY27e), supported by the announced € 500bn infrastructure program in
Germany.
Semperit has not only demonstrated resilience in the crisis through disciplined cost management but is also ideally equipped for the upswing thanks to strategic investments. Looking at the current valuation of
6x trailing EV/EBITDA, the potential reward clearly outweighs the risks.
We initiate coverage with a
BUY recommendation and PT of € 18.2, based on DCF.
You can download the research here:
http://www.more-ir.de/d/32470.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed
Contact for questions:
NuWays AG -
Equity ResearchWeb:
www.nuways-ag.comEmail:
research@nuways-ag.comLinkedIn:
https://www.linkedin.com/company/nuwaysagAdresse: Mittelweg 16-17, 20148
Hamburg, Germany++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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