(Boursier.com) — THE TREND
The CAC40 was moving up this morning to 7,366 points, again approaching its historic highs. At midday, the Parisian index slipped slightly into the red (-0.1% around 7,313 points) despite publications of still favorable results. It is Saint-Gobain’s turn to shine today.
The speeches of the members of the ECB continue however to break the mood with new warnings as to several significant rate hikes which could still be necessary, in addition to a tightening of the screw of 50 basis points expected next March 16th.
RISING VALUES
* Leading the CAC40, Saint Gobain climbed 5% to 56 euros the day after the presentation of record annual results. The French building materials giant generated an operating profit of 5.33 billion euros in 2022, up +18.4%, for a turnover of 51.19 billion euros, up 15.9%. The operating margin thus reached the historic level of 10.4% (+20 bp). The group attributed this solid performance to the strong momentum of all segments worldwide, despite an “unstable geopolitical, energy and macroeconomic environment in 2022”. For 2023, Saint-Gobain expects the operating margin to remain in a range between 9% and 11%. The group is also proposing a dividend of 2 euros per share, up 23% compared to last year, adding that it will allocate at least 400 million euros for share buybacks in 2023 to further reduce the number of its outstanding shares.
* Still carried by its last publication, SEB gained 1.5% to 107.3 euros at the end of the week. TP ICAP Midcap nevertheless downgraded the value to ‘hold’ while maintaining its target at 110 euros.
* Accor ends very well this week with a title that jumped 4% to 31.9 euros. The buying flow on the hotel group is to be linked to a note from Stifel which raised to ‘keep’ its advice on the value with a target raised from 20 to 32 euros.
FALLING VALUES
* Renault yields 1.2% to 40.8 euros. Fitch Ratings raised Renault’s long-term issuer credit rating from ‘BB’ to ‘BB+’. The outlook is ‘stable’. This increase reflects the strengthening of Renault’s profitability and balance sheet flexibility following the update of its strategic plan.
* Fnac-Darty nose dive this weekend (-6.6% to 36 euros), weighed down by 2022 results in decline and 2023 forecasts without relief. The distributor reported a net loss of 28 million, against a profit of 160 ME in 2021 for sales of 7.95 billion euros, down 1.9% like-for-like, but growing by + 7% compared to 2019 pro forma. “This performance is part of a context of tensions on purchasing power linked to a high level of inflation which has persisted throughout the year, and after a record year 2021”, specifies the group. Current operating income reached 231 ME after 271 ME in 2021, while the gross margin rate stands at 30.3%, up +80 basis points. For 2023, the Group expects sales to be down slightly in the 1st half, with a sharp rise in costs, in particular for energy, but should benefit from less unfavorable market conditions in the second half with a level of inflation that could be lower than in the first semester. Overall, Fnac Darty expects current operating income in 2023 to be down around €200 million (but in line or up compared to 2022 excluding the impact of the expected rise in energy costs). This decline should be more pronounced in the 1st half than in the 2nd half, due to a greater weight of fixed costs on the activity and higher energy costs over this part of the year.
* Valeo stumbles 5.5% below 20 euros, sanctioned after a forecast of free cash flow below expectations. The automotive supplier expects free cash flow generation of more than 320 million euros in 2023, while the latter stood at 388 ME last year, with a turnover of between 22 and 23 MdsE and an operating margin between 3.2% and 4%.
* Alten (-1% to 143.6 euros) saw its operating margin on activity increase by 31.2% to 419.6 ME over the 2022 financial year, despite wage inflation partially offset by price increases , thanks to an improvement in the activity rate and rigorous management of structural costs. Alten also cites the strongest contribution from international business, which is more profitable, having enabled the operating margin on business to reach 11.1% of turnover (10.9% in 2021).