Report
Arnaud Goossens
EUR 147.78 For Business Accounts Only

When the going gets tough

Roularta reprted a weak set of 1H17 results (net profit down 90%), reflecting pressure on Belgian advertising revenues in Print Media and TV broadcasting. However, cash flow is resilient (operating cash flow -10%) and the group's leading market share is not at risk. Our EPS forecasts have been cut by 63%, 50% and 53% for 2017e, 2018e and 2019e respectively to take into account the weak ad spend environment and further margin pressure. Our fair equity value is set at €17.3/share, in line with the current share price, down from €23.1/share previously, based on our sum of the parts model, which points to 2018e P/E and EV/EBIT multiples of 20x and 10x respectively (based on combined accounts).

Provider
Merodis Equity Research
Merodis Equity Research

Merodis Equity Research offers bespoke equity research backed by our extensive experience in equity markets at top-tier investment banks in London, Paris and Brussels serving institutional investors worldwide. Analysts at Merodis Equity Research have achieved #1 Extel rankings in the past for Benelux equity research.

Please note that we may have been mandated by the company to produce the research report (clearly indicated on the front page of the report), but that (1) our fees are not linked at all to our opinions and views, and (2) that we refund the company with the proceeds from the sale of our research as to remain 100% independent. This is an innovative business model, which we hope will contribute to improving the visibility towards worldwide investors of small & mid caps that deserve wider market attention and ownership.

Analysts
Arnaud Goossens

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