Last checked at 1 Mar 2022 07:01
Edison Investment Research Limited Edison Investment Research Limited: 4imprint Group (FOUR) - Moving on up 01-March-2022 / 07:00 GMT/BST
London, UK, 1 March 2022
4imprint Group (FOUR) - Moving on up 4imprint's year-end trading update points to FY21 revenues of $787m, ahead of our expectation of $775m, up 41% on the prior year, after a strong Q4. PBT is indicated at the high end of the (wide) consensus range and we increase our estimate from $22.6m to $30.4m. Supply chain and inflation issues look set to continue, so margins will take longer to recover to the levels pre-COVID-19 pandemic, but the group has a degree of flexibility around substitution and pricing, which should mitigate the heaviest potential trading impact. 4imprint's long-term growth record, strong cash generation and robust balance sheet underpin the premium rating. 4imprint benefits from its scale, low fixed-cost base and limited capital requirements, attractive cash flow characteristics and cash positive balance sheet, all of which justify its premium rating. A DCF suggests a price of £33.29, while it trades on an FY22e EV/EBITDA of 21.5x, versus marketing services stocks on 10.5x. We expect continuing good growth will narrow this valuation gap. Click here to view the full report or here to sign up to receive research as it is published.
All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Fiona Orford-Williams +44 (0)20 3077 5739 media@edisongroup.com Max Hayes +44 (0)20 3077 5700 media@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement. |
1290081 01-March-2022
corporate announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.