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Original-Research: Rosenbauer International - from NuWays AG
Classification of NuWays AG to Rosenbauer International
Company Name: Rosenbauer International
ISIN: AT0000922554
Reason for the research: Update
Recommendation: Kaufen
from: 27.03.2024
Target price: EUR 54.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Christian Sandherr
Refinancing agreement with lenders and capital increase
Topic: Rosenbauer reached a multilateral refinancing agreement with its
major lenders and promissory note holders. Further, the Austrian vehicle
manufacturer announced to be planning a capital increase of at least 3.4m
shares to strengthen its balance sheet.
Successful refinancing: During FY23, Rosenbauer had difficulties meeting
its covenants of an equity ratio above 20% and a net debt to EBITDA ratio
below 6. At the end of 9M FY23, the equity ratio stood at 14.3% and the net
debt to EBITDA ratio at 15. The company now announced a refinancing
agreement, which runs until November 3rd, 2025. All covenants in existing
agreements will be suspended and redefined for the duration of the
refinancing agreement (so far no details disclosed). For the term of the
refinancing agreement, any dividend payments are suspended (eNuW old: EUR 1.0
per share).
Material capital increase: Rosenbauer intends to issue at least 3.4m new
shares (50% increase) during 2024 to strengthen its balance sheet and
paying bondholders. Assuming a 30% discount to yesterday's closing price of
EUR 27.60, potential gross proceeds could reach roughly EUR 66m. EUR 35m of the
proceeds and additionally any excess cash in 2025 (cash sweep) shall be
used for repayments.
Healthy operating business: Rosenbauer has largely overcome the challenging
supply chain situation in FY22 & FY23 and showed a successive improvement
in its profitability during FY23. The EBIT margin in Q1 came in at -2.6%
and climbed to 2.1% in Q2, 4.4% in Q3 and 7.2% in the preliminary final
quarter, which was seasonally the strongest quarter. Due to largely
normalized chassis lead times and significant price increases from
Rosenbauer, we expect an EBIT margin of 4.6% in FY24e (FY23: 3.5%). Further
FY23 order intake increased 18% yoy to EUR 1.45bn, leading to a record high
order backlog of EUR 1.79bn. Backed by restored profitability, continued
strong demand and an improved supply chain, Rosenbauer should be able to
deliver solid FY24e results (eNuW FY24e: Sales EUR 1.16bn/+8.6% yoy; EBIT EUR
53m/ +41% yoy).
Despite the high debt ratio and stock dilution, Rosenbauer's operating
business remains intact. The agreement with bondholders and the capital
increase are necessary steps to secure the future financing of the company.
Thus, the fact that the company has come to a solution with its bondholders
can be interpreted as positive news flow. Reiterate BUY with an unchanged EUR
54.00 PT, based on DCF.
You can download the research here:
http://www.more-ir.de/d/29265.pdf
For additional information visit our website
www.nuways-ag.com/research.
Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research.
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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The issuer is solely responsible for the content of this research.
The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.
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