Ikke-uafhængig analyse: Danfoss A/S – (OW) – H2 21: Leverage only slightly above 2x despite significant acquisition

Danske Bank har mod betaling udarbejdet denne analyse af Danfoss A/S: 

Danfoss reported a solid H2 21 with EBITDA of EUR652m, up from EUR551m in H2 20. The acquisition of Eaton’s hydraulics business was included from 2 August 2021 and contributed revenues of EUR786m in H2 21 and a pre-tax loss of EUR93m, negatively impacted by integration costs. Danfoss reported adj. net debt to EBITDA of 2.3x at year-end 2021, up from 0.7x at year-end 2020, mainly due to the USD3.3bn acquisition of Eaton’s hydraulics business. We expect Danfoss to focus on integration and deleveraging in 2022, which we believe will further strengthen the credit case. Credit metrics are fully commensurate with the current BBB/Stable credit rating from S&P, which is in-line with Danfoss’ rating target. Danfoss does not disclose the exact revenue and asset base numbers for Ukraine/Russia but Eastern Europe as a whole accounts for only 8% of group revenues – hence we see the direct negative impact as manageable. We maintain our Overweight recommendation on Danfoss as we expect the company to focus on deleveraging in 2022 following the significant acquisition and we see the longer dated bonds in particular as attractively valued vs. peers, although we caution that liquidity in the corporate bond market is currently low.

Få vores øvrige investeringsnyheder direkte i din indbakke. Tilmeld dig vores gratis daglige nyhedsbrev her: