Exel: Balance sheet creaks at the seams
Yesterday, Exel lowered its revenue guidance for the current year, which did not come as a surprise given the sluggish start to the year. The company also announced the restructuring of its US operations, in connection with which it will take a significant write-down for Q4. Combined with the current market situation, performance and already high leverage, we believe this increases the risks to the balance sheet. Reflecting this and the negative forecast changes we have made, we believe that the risk/return ratio for the stock has turned very poor for the next 12 months.
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Exel Composites
Exel Composites is a manufacturing company. The company manufactures and markets compound composites that are used in demanding industrial environments. In addition to the main business, lamination and extrusion are also performed. The largest presence is in Europe and Asia with customers in the manufacturing and aerospace industries. Exel Composites was founded in 1960 and is headquartered in Vantaa.
Read more on company pageKey Estimate Figures19.10.2023
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 137.0 | 100.9 | 109.2 |
growth-% | 1.95 % | -26.37 % | 8.25 % |
EBIT (adj.) | 8.0 | -1.0 | 2.9 |
EBIT-% (adj.) | 5.86 % | -0.98 % | 2.62 % |
EPS (adj.) | 0.61 | -0.34 | 0.05 |
Dividend | 0.20 | 0.00 | 0.00 |
Dividend % | 15.55 % | ||
P/E (adj.) | 2.09 | - | 6.03 |
EV/EBITDA | 4.58 | 7.07 | 4.06 |