Electrolux AB B

AB Electrolux sells home appliance for households and businesses, with products such as refrigerators, dishwashers, washing machines, cookers, vacuum cleaners, air conditioners and small domestic appliances under brands such as Electrolux, AEG, Zanussi, Frigidaire and Electrolux Grand Cuisine. Co. has six segments: Major Appliances Europe, Middle East and Africa; Major Appliances North America; Major Appliances Latin America; Major Appliances Asia/Pacific; and Small Appliances, which comprise the products for consumer durables market; and Professional products. Co.'s professional products include food-service equipment for hotels, restaurants and institutions, as well as laundry equipment.
  • TickerELUX B
  • ISINSE0000103814
  • ExchangeNasdaq Nordic Stockholm
  • SectorHousehold Goods & Home Construction
  • CountrySweden

Analysts

Antti Kansanen ...
  • Christer Magnergård
  • Eivind Sars Veddeng
  • Jørgen Lian
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Simen Mortensen

Northern Lights

Christer Magnergård

Electrolux (Buy, TP: SEK215.00) - No help from external factors

Despite facing some headwinds from FX, raw material costs, and tariffs, we believe Electrolux should still report decent profitability in 2018e and in 2019e. Although the headwinds seem larger than what we previously forecast (resulting in c11% lower 2019 EPS estimates), we believe the company should be able to report improving EBIT. As the shares are trading at 0.4x EV/sales, we believe the risk-reward is positive. We retain our BUY with a SEK215 (240) target price.

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Eivind Sars Veddeng
  • Karl-Johan Bonnevier
  • Nicolay Dyvik
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Simen Mortensen

Northern Lights

Christer Magnergård

Electrolux (Buy, TP: SEK240.00) - Always outnumbered, never outgunned

Electrolux continues to battle external headwinds; we expect FX and raw material costs totalling SEK775m YOY in Q3. Nonetheless, we see Electrolux continuing to perform well, and achieve close to 6% EBIT margins in 2018. Looking at 2019, we believe the group should be able to more than offset costs related to tariffs with further cost savings and improved price/mix. We have trimmed our target price to SEK240 (265) and reiterate BUY.

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Frank Maaø
  • Håkon Astrup
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Mattias Holmberg
  • Mattias Montgomery
  • Nicolas McBeath
  • Ole-Andreas Krohn
  • Patrik Ling
  • Simen Mortensen
  • Stefan Gauffin

Assets exposed to interest hikes

Christer Magnergård

Electrolux (Buy, TP: SEK215.00) - No help from external factors

Despite facing some headwinds from FX, raw material costs, and tariffs, we believe Electrolux should still report decent profitability in 2018e and in 2019e. Although the headwinds seem larger than what we previously forecast (resulting in c11% lower 2019 EPS estimates), we believe the company should be able to report improving EBIT. As the shares are trading at 0.4x EV/sales, we believe the risk-reward is positive. We retain our BUY with a SEK215 (240) target price.

Christer Magnergård

Electrolux (Buy, TP: SEK240.00) - Always outnumbered, never outgunned

Electrolux continues to battle external headwinds; we expect FX and raw material costs totalling SEK775m YOY in Q3. Nonetheless, we see Electrolux continuing to perform well, and achieve close to 6% EBIT margins in 2018. Looking at 2019, we believe the group should be able to more than offset costs related to tariffs with further cost savings and improved price/mix. We have trimmed our target price to SEK240 (265) and reiterate BUY.

Christer Magnergård

Electrolux (Buy, TP: SEK265.00) - Increased quality

We note increased profitability stability and believe that the company is becoming increasingly agile in its work to offset headwinds by adjusting costs or raising prices. We look for close to 6% EBIT margins this year, despite a SEK2.5bn headwind from FX and raw material costs, in addition to US tariffs, higher logistic costs and cost inflation on components. At a 2019e EV/sales of 0.44x, we find the valuation undemanding and keep our BUY and SEK265 target price.

Christer Magnergård

Electrolux (Buy, TP: SEK265.00) - Worse before it gets better

With H2e pointing to solid earnings growth driven by a positive price/mix and cost savings, we believe the recent sell-off offers a particularly good entry point. That said, Q2 should be a really weak quarter burdened by raw materials cost inflation, FX headwinds, and tough market conditions in North America (aircons) and Brazil. We stick to our BUY but have lowered our target price to SEK265 (285).

Christer Magnergård

Electrolux (Buy, TP: SEK320.00) - Set to take next step at CMD

Electrolux (ELUXB SS, Buy) - Set to take next step at CMD (33 pages)

Antti Kansanen ...
  • Christer Magnergård
  • Eivind Sars Veddeng
  • Jørgen Lian
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Simen Mortensen

Northern Lights

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Eivind Sars Veddeng
  • Karl-Johan Bonnevier
  • Nicolay Dyvik
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Simen Mortensen

Northern Lights

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Frank Maaø
  • Håkon Astrup
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Mattias Holmberg
  • Mattias Montgomery
  • Nicolas McBeath
  • Ole-Andreas Krohn
  • Patrik Ling
  • Simen Mortensen
  • Stefan Gauffin

Assets exposed to interest hikes

Christer Magnergård ...
  • Karl-Johan Bonnevier
  • Mattias Holmberg
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Rune Majlund Dahl

Northern Lights

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Expert Corporate Governance Service (ECGS)

Proxy Report - 05/04/2018

In general, Electrolux is in compliance with the Swedish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEMS 14a-14i, the (re-)election of the board of directors is proposed. In light of concerns over aggregate time commitments, ECGS recommends to vote OPPOSE to the (re-)election of: Mr. Bert Nordberg (ITEM 14e). Under ITEM 16, the board of directors seeks approval of the Company's remuneration policy. ECGS questions the overall balance of Electrolux' executive compensation package. The performance period of the LT incentive plan (1 year) is ins...

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