MASTERS IN FINANCE BEIERSDORF AG COMPANY REPORT PERSONAL CARE AND SELF-ADHESIVE/ SEALANT 3 JANUARY 2018 STUDENT: CONSTANTIN FELIX WAGNER
[email protected] Stable and solid growth Recommendation: HOLD Vs Previous Recommendation HOLD Achieving growth through two distinct businesses Price Target FY18: 91.35 € Vs Previous Price Target NA€ Price (as of 3-Jan-18) 97.90 € ▪ We recommend holding Beiersdorf AG given our FY price Reuters: Bloomberg: target of EUR 91.35 per share that corresponds to an overall downside potential of -6.69% against the current price level of EUR 52-week range (€) 83.95-91.03 97.90 as of 2nd January 2017. Market Cap (€m) 24,671 Outstanding Shares (m) 252 ▪ Dividends attributable to shareholders resulted to EUR Source: Bloomberg 1.49, what is derived by a payout ratio of 39.4% in FY 2018. This in return led to a net shareholder return of EUR 92.84, what represents a downside potential of -5.17%. ▪ Beiersdorf relevant operating markets will experience modest growth, although the European market showed low growth rates of 2.1% and 3.5% for the personal care and self-adhesive and sealant market respectively. China is expected to continue to Source: Bloomberg be the most growing market for the adhesive and sealants (Values in € millions) 2017 2018E 2019F industry. Revenues 7,056 7,347 7,649 EBITDA 1,279 1.394 1,516 ▪ The worldwide personal e-commerce segment revenue is Net Profit 796 882 974 expected to increase by a CAGR of 19.5% from FY 2017 until FY EPS 3.42 3.79 4.19 P/E 26.6 24.0 21.8 2022.