FDJ retreats after solid and unsurprising results

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(Boursier.com) — Against the trend, FDJ fell 3.3% to 37.2 euros despite the announcement of solid annual results and in line with market expectations. Some people actually seem to find the 2023 guidance a bit tight, while management is aiming for 2023 sales growth of between 4% and 5% and a current EBITDA margin rate maintained at around 24%. On the strength of these results, the management is proposing the payment of a dividend of 1.37 euros per share, up 10%, ie a payout rate of 85%, in line with the group’s objectives.

Oddo BHF maintains its ‘neutral’ opinion on FDJ, which benefits from a resilient growth profile (normative growth of holdings of 5-6% per year, +7-8% for EBITDA in 2022-2025), a solid balance sheet allowing for regular returns to shareholders and potential for mergers and acquisitions, although European Commission investigations could put the stock under pressure in the coming months, with a decision which may not be made before the end of the first half of 2023. At the current price, FDJ is trading on a 2023e EV/EBITDA ratio of 10.2, i.e. a premium of 5% compared to its main peers (Tabcorp, OPAP, Flutter, Entain).

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