Original-Research: Delticom AG (von Quirin Privatbank Kapitalmarktgeschäft):...
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Original-Research: Delticom AG - from Quirin Privatbank Kapitalmarktgeschäft
19.05.2025 / 13:58 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of Quirin Privatbank Kapitalmarktgeschäft to Delticom AG
Company Name: Delticom AG
ISIN: DE0005146807
Reason for the research: Update
Recommendation: Buy
from: 19.05.2025
Target price: 4.20
Last rating change:
Analyst: Daniel Kukalj, CIIA, CEFA
Good start into FY 2025
Delticom AG remained focused on profitable growth during Q1 2025 with
revenues growth of 9.0% yoy. This positive development is also reflected in
the overall market environment: According to the European Tyre and Rubber
Manufacturers' Association (ETRMA), the upward trend in the consumer tyre
segment (+3% yoy), already observed in the second half of 2024 (+8% yoy),
continued in the first quarter of 2025. Volumes nearly returned to the
levels of Q1 2019 - before the onset of the pandemic. TTM sales fell by EUR
4m to EUR 490 million and were therefore 1% lower than TTM sales in the same
period of the previous year, but the strong Q4 2023 must be taken into
account, so the current TTM development can be seen as positive. Q1 2025
Group EBITDA was also significantly higher year-on-year at EUR 1.5m (Q1
2024: EUR 0.7m), resulting in a TTM EBITDA of EUR 21.1m (4% lower than TTM
EBITDA in the same period last year). If you look at the TTM figures at
sales and EBITDA level, the company's 2025 forecast (Sales EUR 470-490m;
operating EBITDA EUR 19-21m; Quirin estimates: EUR 472m and EUR 19.3m,
respectively) can be considered realistic, as the uncertainties surrounding
the end markets are difficult to predict. The European replacement tyre
market remains dramatically underestimated in terms of size and future
growth potential, which positions the company to benefit from long-term
tailwinds. Applying our ROE/COE valuation approach, we derive a new fair
value of 4.20 (4.10), therefore we confirm our BUY rating. The outstanding
dividend payment of EUR 0.12 per share, which represents an attractive
dividend yield of ~4.8%, and the ongoing share buy-back currently provides
downside risk protection.
You can download the research here: http://www.more-ir.de/d/32662.pdf
For additional information visit our website:
https://research.quirinprivatbank.de/
Contact for questions:
Quirin Privatbank AG
Institutionelles Research
Schillerstraße 20
60313 Frankfurt am Main
research@quirinprivatbank.de
https://research.quirinprivatbank.de/
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2140704 19.05.2025 CET/CEST
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