171205 Arcadis | from least liked to …

171205 Arcadis | from least liked to …

No. pages 18

In the Spring of this year we were - among - the first in the market to turn positive on Arcadis. In an in-depth report called 'from most beloved to least liked' we argued why. At that moment we labelled Arcadis a highly attractive investment case because;

> firstly - and most importantly - the shares traded sharply below its fair value according to us,
> at that moment there was not a single analyst with a positive stance on this company and
> we foresaw that when organic growth would start to turn positive again, this could be a trigger for other to upgrade their views.

Since the release of our report the share price has advanced by some 30%.

Besides a lot has happen of which the most important milestones were;

> the appointment of Peter Oosterveer as new CEO,
> the strategic review of CallisonRTKL,
> the return to positive organic net revenue growth and
> the presentation of its strategy 'Creating A Sustainable Future'.

In this report we will discuss Arcadis' updated strategy and its new framework of financial targets which were presented at its Capital Markets Day. Thereafter we will compare our mid-term outlook with the company's financial guidance. If and when necessary our outlook estimates will be adjusted accordingly.

Lastly we will draw our conclusions and investment opinion.


     executive summary
1   introduction
2   Arcadis at a glance
3   ‘Creating A Sustainable Future’
4   organic revenue growth
5   operating margin
6   net working capital and DSO
7   return on invested capital
8   leverage ratio
9   DCF model
10 CallisonRTKL
11 summary and conclusions

Created Date: Wednesday December 13, 2017 17:51:50
Last Updated Date: Wednesday December 13, 2017 17:51:50
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