MASTER IN FINANCE FIELMANN AG COMPANY REPORT EUROPEAN EYEWEAR RETAIL 4 JANUARY 2021 STUDENT: JAN-PHILIP JANSEN
[email protected] Fashionable Glasses for Everyone Recommendation: BUY Fielmann Strengthens its Position in the Industry Price Target FY21: 79.01 € Price (as of 3-Jan-21) 66.45 € Our recommendation is to BUY Fielmann AG considering a Bloomberg: FIE target price of €79.01 as of 31.12.2021 reflected in an upside potential of 20.69% (thereof €1.19 expected dividend) to the current 52-week range (€) 41.90-76.25 Market Cap (€m) 5,581 share price of €66.45. Outstanding Shares (m) 84,000 Source: Thomson Reuters EIKON Market trends like an ever aging population, digitalization and industry consolidation set a solid foundation for further sustainable growth. We think Fielmann will be able to re-accelerate top-line growth back to 5%, achieved by a consistent realization of Fielmann’s corporate strategy “Vision 2025”. High Liquidity and strong Free Cash Flows provide sufficient funding for the renovation and internationalization Source: Yahoo Finance strategy. (Values in € millions) 2019 2020E 2021F The COVID-19 pandemic is currently the biggest threat for Revenues 1,524 1,385 1,556 the eyewear industry but at the same time a huge opportunity for EBITDA 410 328 382 EBIT 281 178 244 Fielmann due to its strong financial position. In contrast to other Capex 185 155 215 analysts, we expect Fielmann to be one of the post-crisis winners. FCF 126 118 68 Source: Annual Report 2019, Analyst Estimation We believe that the broad market might underestimate future profitabilty arising from further market consolidation.