da Intermonte – ESPRINET company research report

Buon pomeriggio,

di seguito e in allegato inviamo il company research report relativo ad ESPRINET a cura di Intermonte.

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Chiara

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Stronger Margins Drive Solid 4Q. Positive 2025 Outlook

4Q results highlighted solid margin improvement, allowing the company to achieve the upper end of its FY EBITDA guidance range, despite a soft start to the year due to a slowdown in the consumer business. This was supported by an improved revenue mix toward value-added services, and a favourable market environment for resilient, energy-efficient infrastructure. With a positive outlook and a comparatively easy baseline in the first two quarters of 2025, we broadly reaffirm our growth and margin expectations on FY25/26 and maintain our positive stance on the stock. BUY rating and DCF-based target price of €6.80 per share (WACC 9%, PGR 2%) confirmed.

• Good set of 4Q results. PRT’s 4Q revenues were €1.36bn (+10% YoY), in line with estimates (€1.38bn). Domestic sales reached €0.8bn (+4% YoY), while Spain grew strongly (+22% YoY, €0.51bn). Retailers & e-tailers (B2C) led growth (+20% YoY), outperforming IT resellers (B2B, +6% YoY). The gross margin improved (5.58% vs. 5.35%), supported by a better mix, with a higher contribution from V-Valley and a strong performance from Zeliatech. Adj. EBITDA rose to €33.2mn (+21% YoY), a 2.44% margin (vs. 2.22%), benefiting from a better gross margin & SG&A control. FY EBITDA was €69.5mn (1.68% margin), near the upper end of guidance (€66-71mn). Net debt fell to €36mn (from €344mn in 3Q), supported by better NWC management and greater use of factoring. Cash conversion was 22 days, stable vs. previous quarters. ROCE at 8.3% (vs. 6.9%). DPS at €0.40 (90% payout) above est.
• Call highlights. The conference call primarily focused on the new business structure, highlighting Zeliatech as a standalone division. Zeliatech plays a key role in the distribution of renewable energy and energy efficiency technologies, with management seeing strong growth opportunities, both organically and through M&A, as PRT explores expansion across Europe. For the Esprinet division (Screens & Devices), the strategy remains focused on a selective revenue approach and favourable WC management, with a key growth driver being the PC renewal cycle fuelled by AI innovation and end-of-life for Windows 10. V-Valley (Solution & Services) continues its strong growth trajectory, supported by AI adoption and rising cybersecurity demand. Overall, the outlook remains positive, with management targeting another year of profitable growth, maintaining a strong focus on working capital management and improving ROCE. As per usual practice, PRT will publish its FY EBITDA guidance alongside 1Q results.
• Change in estimates. We are making minor adjustments to our estimates: revenue projections remain largely unchanged, with only a slight ~1.5% reduction on average. However, we expect an improved revenue mix and reduced reliance on factoring/securitisation, boosting the gross margin. For EBITDA, we are including a modest increase in SG&A expenses due to higher labour costs associated with collective bargaining agreements. Below EBITDA, we are raising our D&A estimates to reflect the RoU costs for the newly opened Italian warehouse in Tortona, resulting in a mid-single-digit revision to earnings. In terms of cash flow, we expect PRT to continue its strategy of reducing inventory days and maintaining positive cash generation.