Beter Bed

Beter Bed

Documents

150701 Beter Bed | Sleep tight (while collecting dividends) 150701 Beter Bed | Sleep tight (while collecting dividends)

No. pages 41
Description

Based on markets and company results which only started to recover as of mid FY14, we estimate earnings can accelerate further. We estimated the company can reach its peak EBITDA and peak EPS levels as of FY16E, exceeding previous peaks (in FY07, FY10 and FY11). Moreover, healthy free cash flow conversion rates and a balance sheet that never has been so solid support a dividend policy which should at least provide 4-5% dividend yields. Higher pay-outs (>80%) and yields (5-6%) can't be ruled out. Strategically, we believe the company's needs to broaden its geographic horizon to more favorable demographic areas.

Contents

    Summary and Conclusions
1   Introduction and profile
2   Consistent performance on the longer term
3   Despite shorter term volatility
4   Store base expansion back on the agenda
5   Sales densities: Current levels below historic levels
6   Sales densities: So, what's the upside?
7   Market(s), macro and demographics
8   Estimates and valuation
9   Appendix

160419 Beter Bed Holding | Expansion more prominently on agenda 160419 Beter Bed Holding | Expansion more prominently on agenda

 

 



    
        
            
            
        
        
            
            
        
        
            
            
        
    

No. pages
            
32
Description
            

                

Based on markets and company results which only started to recover as of mid 2014, we estimate earnings can accelerate further. We estimated the company can reach its peak EBITDA and peak EPS levels as of 2016E,exceeding previous peaks. Moreover, healthy free cash flow conversion rates and a net cash position support both an attractive dividend and an expansive strategic policy.


            
Contents
            

                

                        
  • Summary and Conclusions

  •                     
  • Consistent, positive performance on the longer term

  •                     
  • Despite shorter term volatility

  •                     
  • Store base expansion more prominently back on agenda

  •                     
  • Sales densities: despite progress, still below historic levels

  •                     
  • Sales densities: so what's the upside?

  •                     
  • Market conditions and economic environment

  •                     
  • Market conditions and economic environment

  •                     
  • Estimates and valuation

  •                     
  • Appendix

  •                     
                    

            

170530 BeterBed | uncertainties create opportunities 170530 BeterBed | uncertainties create opportunities

No. pages 30
Description A disappointing share price performance due to unfavorable geographic mix and rising costs
We have published a new report (30 pages) featuring Beter Bed following earlier reports last July 2015 and April 2016. There is no denying that the upside potential that we expected hasn't materialized. Beter Bed's share price dropped considerably thereby underperforming the market. Main reasons for the disappointments were a negative sales growth performance in Germany and accelerating operational costs in general. Ironically, Dutch sales growth rates were so strong that additional capacity was needed to absorb the sales jump.

Road map of our report: Shorter and longer term trends and what about leases?
Chapter 1 of this company report presents further by presenting 2 scenarios. We might be early regarding this subject, but we believe a sluggish share price performance might also have been related to the uncertainties related to leases. However, cash flows will not (hardly) change following the implementation of IFRS 16. Moreover, details our investment case. In Chapter 2 we deepen our focus on longer term trends, specifically on sales densities per country and banner. Lastly, in Chapter 3, we shed our light on the potential impact of the implementations of IFRS 16 as of January 2019 Beter Bed has included provisions in its agreements so that debt covenants are not breached as a result of applying IFRS 16. Bottom line, IFRS 16 should not be a reason for worries, in our view.

Contents

 

Disclaimer

This publication has been prepared by the Idea-Driven Equities Analyses company B.V. (hereafter; the IDEA!) solely for information purposes to its clients.
It is not intended as an offer or solicitation for the purchase or sale of any financial instrument.
No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, except with respect to information concerning the IDEA! and affiliates, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in the report.
Any investments referred to herein may involve significant risk, are not necessarily available in all jurisdictions, may be illiquid and may not be suitable for all investors. This report has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Investors should, without relying solely on this report, make their own independent investment decisions and, if necessary, seek professional advice. The value of, or income from, any investments referred to herein may fluctuate because of changes in interest rates or exchange rates, securities prices or market indices, operational or financial conditions of companies or other factors. Past performance is not indicative of future results.
Neither the IDEA! nor any of its officers or employees accept any liability for any direct or consequential loss arising from any use of this publication or its contents.
The IDEA! is a research boutique, offering its services to a select group of professional investors only and has no investment banking relationships with companies mentioned in this report.
This report may not be reproduced or redistributed, in whole or in part, by any person for any purpose without the prior written permission of the IDEA! and the IDEA! accepts no liability whatsoever for the actions of others in this respect.
The distribution of this document in certain jurisdictions may be restricted by law, and recipients into whose possession this comes should inform themselves about, and observe, any such restrictions.
In the United Kingdom this report is only intended for distribution to, and is only directed at, (i) persons who have professional experience in matters relating to investments, (ii) persons who fall within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) and (iii) persons to whom it may otherwise lawfully be distributed and any investment or investment activity to which it relates is available only to such persons. This report should not be distributed or passed on, directly or indirectly, to any other person in the United Kingdom and any other person should not rely or act on it.
This report is distributed in the United States of America solely to "major institutional investors" as defined in Rule 15a-6 (U.S. Securities Exchange Act of 1934) and may not be furnished to any other person in the United States. Each U.S. recipient by its acceptance hereof warrants that it is a "major institutional investor" as defined, understands the risks involved in dealing in securities or any financial instrument and shall not distribute nor provide this report, or any part thereof, to any other person.
Investors outside the United States and United Kingdom are encouraged to contact their local regulatory authorities to determine whether any restrictions apply to their ability to purchase investments to which this report refers.
The use of this website is governed by and shall be construed in accordance with Dutch law. As such, this product has been prepared for professional investors only as described in art. 1.1 WFT.
By using our website and/or downloading any products from this website, the user declares to qualify as such and to accept the terms of use of this website as well as the contents of this disclaimer.

Your Cart

Your cart is empty
All prices are subject to
21% VAT.

Client Login



euroirp-logo© 2011 the IDEA! | terms of use | disclaimersitemap |