It surprises Aandelenondereentientje that the price of this Belgian Deceuninck share has fallen by more than 10 percent in a year, despite the fact that the price of the Turkish (listed) company Ege Profil, of which Deceuninck owns almost 88 percent of all shares, has risen as much as more than 280 percent in a year. Investors seem concerned about the end markets in which the Belgian company operates. Equity Undersecretary sees an opportunity and is buying 1,250 Deceuninck shares at the current portfolio price of €2.27.
Next week (Aug. 24), the Belgian group will release its half-year results. On April 26, management reiterated its earlier forecast for the whole of 2023: it is again counting on a year of growth in EBITDA results and on a further improvement in free cash flow. Next week will reveal the extent to which the group has been affected by more difficult market conditions.
Since the beginning of May, Ege Profil’s share price has almost tripled. Meanwhile, the stake that Deceuninck holds in this Turkish company represents a value of €340 million, while the total market capitalization of the Belgian company is only €321 million. This means that at the time of writing, investors are assigning a negative valuation to the Belgian group’s remaining operations. This is despite achieving an EBITDA result of €102.3 million in 2022 on sales of €974.1 million and the company having a net debt of only €88.3 million at the end of 2022.
We believe the stock is very promising, despite the shorter-term prospects being challenging for the group. In our opinion, a substantial part of the “hidden value” could be crystallized should management take the right steps, such as a partial sale of Ege Profil shares, a buyback of its own shares or even a full sale of Deceuninck. Who knows, we may hear more about one of the aforementioned steps next week.
The fact that the price is low could have to do with the fact that analysts are afraid that Deceuninck will come out with a profit warning next week. But that is actually not done this close to the figures , so our conclusion is that everyone is asleep.
Subscribers with a slightly more active investment style could take another gamble by getting on board just now. Sharesondereentientje advises to always maintain a proper diversification in the portfolio. The share price is now around €2.30, don’t go buying like a rabid bull at any price. Take into account the limited liquidity in the stock and, if necessary, work with limited orders. We are buying 1250 Deceuninck shares for our portfolio at the current price of €2.27.
Fundamental characteristics Deceuninck
ISIN code: BE0003789063
Ticker: DECB
Exchange: Euronext
Share price August 17: €2.30
Highest price in 52 weeks: €2.73
Lowest price in 52 weeks: €1.86
Website: www.deceuninck.com