Announcement • Dec 30
Marel hf.(ICSE:MAREL) dropped from FTSE All-World Index (USD) Marel hf.(ICSE:MAREL) dropped from FTSE All-World Index (USD) Reported Earnings • Nov 04
Third quarter 2024 earnings released: EPS: €0.005 (vs €0.013 in 3Q 2023) Third quarter 2024 results: EPS: €0.005 (down from €0.013 in 3Q 2023). Revenue: €386.9m (down 4.1% from 3Q 2023). Net income: €3.80m (down 62% from 3Q 2023). Profit margin: 1.0% (down from 2.5% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Machinery industry in Europe. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Nov 03
Consensus EPS estimates fall by 40% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from €0.05 to €0.03 per share. Revenue forecast steady at €1.70b. Net income forecast to grow 311% next year vs 14% growth forecast for Machinery industry in Europe. Consensus price target of Kr540 unchanged from last update. Share price rose 2.1% to Kr582 over the past week. Buy Or Sell Opportunity • Oct 25
Now 20% undervalued Over the last 90 days, the stock has risen 14% to Kr570. The fair value is estimated to be Kr716, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has declined by 52%. For the next 3 years, revenue is forecast to grow by 4.8% per annum. Earnings are also forecast to grow by 38% per annum over the same time period. Announcement • Aug 28
John Bean Technologies Gets Extension of Acceptance Period for Marel Offer John Bean Technologies Corporation (NYSE:JBT) has been granted an extension of the acceptance period of its takeover offer for Marel hf. (ICSE:MAREL). The move will enable the parties to secure the necessary regulatory nods to close their deal, JBT said on August 26, 2024. The offer, originally set to end on September 2, will now close on the earlier of either November 11 or three weeks after all necessary regulatory approvals are obtained, unless the offer period is further extended. JBT Chief Executive Officer Brian Deck said that despite the extension, the firm still expects to complete the transaction by the end of 2024. Under the terms of the deal, sealed in April, the buyer launched its EUR-3.60-per-share (USD 4.02) takeover offer for all outstanding shares of Marel in June. As agreed, Marel shareholders can elect to receive the proposed consideration only in cash, only in stock or in cash and stock, with the total consideration mix being 65% in JBT common stock and 35% in cash. Marel shareholders will thus own a 38% take in the combined entity and receive a total of EUR 950 million in cash. Major Estimate Revision • Jul 31
Consensus EPS estimates fall by 38% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from €1.73b to €1.71b. EPS estimate also fell from €0.08 per share to €0.05 per share. Net income forecast to grow 350% next year vs 14% growth forecast for Machinery industry in Europe. Consensus price target broadly unchanged at Kr541. Share price was steady at Kr504 over the past week. Reported Earnings • Jul 25
Second quarter 2024 earnings released: EPS: €0.003 (vs €0.004 in 2Q 2023) Second quarter 2024 results: EPS: €0.003 (down from €0.004 in 2Q 2023). Revenue: €415.2m (down 1.7% from 2Q 2023). Net income: €2.10m (down 32% from 2Q 2023). Profit margin: 0.5% (down from 0.7% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Machinery industry in Europe. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Jul 25
Now 20% undervalued Over the last 90 days, the stock has risen 2.5% to Kr500. The fair value is estimated to be Kr625, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has declined by 46%. For the next 3 years, revenue is forecast to grow by 5.4% per annum. Earnings are also forecast to grow by 33% per annum over the same time period. Major Estimate Revision • May 14
Consensus EPS estimates fall by 27% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from €1.76b to €1.74b. EPS estimate also fell from €0.11 per share to €0.08 per share. Net income forecast to grow 348% next year vs 14% growth forecast for Machinery industry in Europe. Consensus price target broadly unchanged at Kr538. Share price was steady at Kr486 over the past week. Reported Earnings • May 08
First quarter 2024 earnings released: €0.004 loss per share (vs €0.012 profit in 1Q 2023) First quarter 2024 results: €0.004 loss per share (down from €0.012 profit in 1Q 2023). Revenue: €412.6m (down 7.8% from 1Q 2023). Net loss: €3.20m (down 135% from profit in 1Q 2023). Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Machinery industry in Europe. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Announcement • Apr 06
JBT Corporation and Marel hf. Announce Management Changes JBT Corporation announced that JBT and Marel hf. have executed a definitive transaction agreement related to JBT’s previously announced intention to make a voluntary takeover offer for all of the issued and outstanding shares of Marel. The transaction agreement includes the terms of the offer and other important governance, social, and operating items relating to the proposed business combination of JBT and Marel. The transaction agreement was approved by the boards of directors of both companies. The transaction agreement provides that Brian Deck will serve as Chief Executive Officer (CEO) of the combined company, Arni Sigurdsson will be President of the combined company, and the remainder of the executive leadership positions will be a combination of talent from both companies. The combined company’s board of directors will consist of five independent directors from the pre-closing JBT Board of Directors, four independent directors from the pre-closing Marel Board of Directors, and the CEO of the combined company. Alan Feldman will serve as Chairman of the Board of the combined company. Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 3 highly experienced directors. Independent Director Svafa Gronfeldt was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Buy Or Sell Opportunity • Mar 25
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.8% to Kr453. The fair value is estimated to be Kr571, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has declined by 38%. For the next 3 years, revenue is forecast to grow by 4.6% per annum. Earnings are also forecast to grow by 28% per annum over the same time period. Announcement • Mar 05
Marel hf. Announces Chief Financial Officer Changes Marel hf. announced that Sebastiaan Boelen has been appointed as Chief Financial Officer with immediate effect. Sebastiaan is a Dutch-British national and a highly experienced CFO with over 25 years in international CFO and financial roles. He has worked across a number of industries including industrials, food and beverage, and technology and, he has a proven record in supporting businesses deliver enhanced financial performances. Most recently Sebastiaan spent 4 years at Southern Water where he served as Group Chief Financial Officer. Prior to this, Sebastiaan held CFO and senior financial roles at Arrow Global, SPI Group and Black & Decker, amongst others. After almost 10 years with Marel, by mutual agreement, Stacey Katz will step down as Chief Financial Officer of Marel with immediate effect. She will remain available in an advisory capacity at Marel until the end of the financial year to ensure a smooth transition to the experienced finance team and continued delivery of its strategy. Board Change • Feb 28
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. Independent Director Svafa Gronfeldt was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Declared Dividend • Feb 28
Dividend of €0.0082 announced Shareholders will receive a dividend of €0.0082. Ex-date: 22nd March 2024 Payment date: 11th April 2024 Dividend yield will be 0.002%, which is lower than the industry average of 2.1%. Payout Ratios Payout ratio: 20%. Cash payout ratio: 12%. Announcement • Jan 17
Marel hf. Announces Linda Jonsdottir to Step Down as Chief Operating Officer Linda Jonsdottir has decided to step down from her role as Chief Operating Officer and is leaving Marel hf. Simultaneously the role of Chief Operating Officer will be discontinued. Going forward, the management of the business functions and customer centers will be moved to other members of the executive leadership following a transition plan where Linda will be on hand to ensure a smooth handover of responsibilities internally. Linda joined Marel in 2009 as Corporate Director of Treasury and Investor Relations, she became Chief Financial Officer in 2014 and was appointed Chief Operating Officer in 2022. Announcement • Dec 12
Marel Appoints Arni Sigurdsson as Chief Executive Officer Marel announced that Arni Sigurdsson has been appointed as Chief Executive Officer with immediate effect. Arni Sigurdsson took over the role of Chief Business Officer and Deputy Chief Executive Officer of Marel in November 2022, and has held the role of Interim CEO since 7 November of this year. He joined Marel in 2014 initially as Head of Strategy before taking up the role of Chief Strategy Officer and Executive Vice President Strategic Business Units. Before joining Marel, Arni worked at AGC Partners and Landsbanki Islands. He graduated with an MBA degree from Harvard Business School and BSc in Industrial Engineering from the University of Iceland. Announcement • Nov 29
John Bean Technologies Corporation (NYSE:JBT) cancelled the acquisition of Marel hf. (ICSE:MAREL). John Bean Technologies Corporation (NYSE:JBT) made a non-binding initial proposal to acquire Marel hf. (ICSE:MAREL) for €2.4 billion on November 24, 2023. Under the terms, John Bean shall pay €3.15 per share for 100% of the outstanding shares in Marel wherein 25% of the proposed consideration would be paid in cash and 75% in the form of shares in JBT. The offer is subject to conclusion of a satisfactory due diligence, final approval by JBT´s board of directors, Regulatory approvals, vote of the JBT shareholders and minimum tender condition of 90%. Goldman Sachs Co LLC acted as financial advisor while LEX and Kirkland & Ellis LLP acted as legal advisors for JBT. JP Morgan acted as financial advisor while Baker McKenzie, BBA/Fjeldco and Osborne Clarke acted as legal advisors for Marel.John Bean Technologies Corporation (NYSE:JBT) cancelled the acquisition of Marel hf. (ICSE:MAREL) on November 28, 2023. The Board of Directors of Marel unanimously rejected the offer. Valuation Update With 7 Day Price Move • Nov 27
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to Kr419, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 13x in the Machinery industry in Europe. Total loss to shareholders of 38% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Kr528 per share. Announcement • Nov 26
JBT Corporation Confirms Non-Binding Proposal to Acquire Marel John Bean Technologies Corporation (NYSE:JBT) (‘JBT’ or the ‘Company’) issued the following statement: ‘On November 24, 2023, JBT confirmed that it has submitted a non-binding initial proposal to the board of directors of Marel hf. (ICSE:MAREL) (‘Marel’), whose shares are listed on Nasdaq Iceland and Euronext Amsterdam, in respect of a potential voluntary takeover offer for the entire share capital of Marel in accordance with Chapters X and XII of the Icelandic Takeovers Act no. 108/2007. JBT has received an irrevocable undertaking and entered into exclusivity with respect to the shares owned by Eyrir Invest hf., which holds 24.7% of the shares in Marel. This announcement follows Marel’s disclosure that it had received a potential offer to acquire all shares in the company’. ‘JBT´s non-binding proposal is consistent with the company’s strategic plan and M&A objective of pursuing transactions with strong industrial logic and significant synergy potential while maintaining a strong balance sheet and preserving future strategic flexibility’. ‘JBT’s considerations are at a preliminary stage and there can be no assurance that any formal offer will be made as a result of these considerations. JBT does not intend to comment further unless and until its board determines that it is required or appropriate to do so.’ Goldman Sachs Co LLC is acting as JBT’s financial advisor and LEX and Kirkland & Ellis LLP are serving as legal counsel. Announcement • Nov 08
Marel hf. Announces CEO Changes Marel hf. announced Arni Oddur Thordarson, Chief Executive Officer of Marel, has tendered his resignation with immediate effect, due to personal reasons. The Board of Directors of Marel has accepted his resignation and appointed Arni Sigurdsson, Deputy Chief Executive Officer, as Interim Chief Executive Officer of Marel effective immediately. The Board of Directors will now undertake a process to appoint a permanent Chief Executive Officer. Arni Sigurdsson joined Marel in 2014 initially as Head of Strategy, then from 2020 - 2022 held the role of Chief Strategy Officer and Executive Vice President Strategic Business Units before assuming the position of Chief Business Officer and Deputy CEO in November 2022. Before joining Marel he worked at AGC Partners and Landsbanki Islands. He graduated with an MBA degree from Harvard Business School and BSc in Industrial Engineering from the University of Iceland. Major Estimate Revision • Oct 31
Consensus EPS estimates fall by 29% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from €1.76b to €1.70b. EPS estimate also fell from €0.07 per share to €0.05 per share. Net income forecast to grow 114% next year vs 9.7% growth forecast for Machinery industry in Europe. Consensus price target down from Kr609 to Kr517. Share price rose 7.0% to Kr380 over the past week. Announcement • Oct 26
Marel hf. Provides Earnings Guidance for the period 2017-2026 Marel hf. provided earnings guidance for the period 2017-2026. The company reported management is committed to the financial targets to reach 14-16% EBIT, gross profit of ~38-40% of revenues. Focus on delivering healthy growth and margin enhancement to reach a sustainable 14-16% EBIT level in the course of 2024. In the period 2017-2026, Marel is targeting 12% average annual revenue growth through market penetration and innovation, complemented by strategic partnerships and acquisitions. Maintaining solid operational performance and strong cash flow is expected to support 5-7% revenue growth on average by acquisition. Marel’s management expects average annual market growth of 4-6% in the long term. Marel aims to grow organically faster than the market, driven by innovation and growing market penetration. Recurring aftermarket revenues to reach 50% of total revenues by YE26, including software and services. Marel’s management expects basic EPS to grow faster than revenues. Reported Earnings • Oct 25
Third quarter 2023 earnings released: EPS: €0.013 (vs €0.012 in 3Q 2022) Third quarter 2023 results: EPS: €0.013 (up from €0.012 in 3Q 2022). Revenue: €403.6m (down 10% from 3Q 2022). Net income: €10.1m (up 14% from 3Q 2022). Profit margin: 2.5% (up from 2.0% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Machinery industry in Europe. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Buying Opportunity • Sep 28
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 9.0%. The fair value is estimated to be Kr505, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has declined by 22%. For the next 3 years, revenue is forecast to grow by 4.4% per annum. Earnings is also forecast to grow by 33% per annum over the same time period. Board Change • Sep 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. Independent Director Svafa Gronfeldt was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Jul 30
Second quarter 2023 earnings released: EPS: €0.004 (vs €0.013 in 2Q 2022) Second quarter 2023 results: EPS: €0.004 (down from €0.013 in 2Q 2022). Revenue: €422.4m (up 6.3% from 2Q 2022). Net income: €3.10m (down 68% from 2Q 2022). Profit margin: 0.7% (down from 2.4% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Europe. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Major Estimate Revision • May 19
Consensus EPS estimates fall by 44% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from €1.89b to €1.86b. EPS estimate also fell from €0.16 per share to €0.09 per share. Net income forecast to grow 111% next year vs 16% growth forecast for Machinery industry in Europe. Consensus price target down from Kr680 to Kr598. Share price fell 6.5% to Kr433 over the past week. Valuation Update With 7 Day Price Move • May 10
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to Kr454, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 15x in the Machinery industry in Europe. Total loss to shareholders of 29% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Kr489 per share. Reported Earnings • May 04
First quarter 2023 earnings released: EPS: €0.012 (vs €0.029 in 1Q 2022) First quarter 2023 results: EPS: €0.012 (down from €0.029 in 1Q 2022). Revenue: €447.4m (up 20% from 1Q 2022). Net income: €9.10m (down 58% from 1Q 2022). Profit margin: 2.0% (down from 5.8% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Machinery industry in Europe. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 17
Upcoming dividend of €0.016 per share at 0.4% yield Eligible shareholders must have bought the stock before 24 March 2023. Payment date: 14 April 2023. Payout ratio is a comfortable 20% but the company is not cash flow positive. Trailing yield: 0.4%. Lower than top quartile of Icelandic dividend payers (4.9%). Lower than average of industry peers (2.8%). Reported Earnings • Feb 13
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: €0.078 (down from €0.13 in FY 2021). Revenue: €1.71b (up 26% from FY 2021). Net income: €58.7m (down 39% from FY 2021). Profit margin: 3.4% (down from 7.1% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Machinery industry in Europe. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Feb 09
Marel hf. to Propose Dividend for 2022 Marel hf. proposed Dividend of EUR 11.7 million, or 20% payout ratio, to be proposed by the Board at the AGM 2023, in line with Marel’s dividend policy of 20-40%. Major Estimate Revision • Nov 18
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from €0.08 to €0.07 per share. Revenue forecast steady at €1.67b. Net income forecast to grow 63% next year vs 12% growth forecast for Machinery industry in Europe. Consensus price target broadly unchanged at Kr685. Share price rose 4.1% to Kr531 over the past week. Reported Earnings • Nov 03
Third quarter 2022 earnings released: EPS: €0.012 (vs €0.031 in 3Q 2021) Third quarter 2022 results: EPS: €0.012 (down from €0.031 in 3Q 2021). Revenue: €450.6m (up 36% from 3Q 2021). Net income: €8.90m (down 62% from 3Q 2021). Profit margin: 2.0% (down from 7.1% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Machinery industry in Europe. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment improved over the past week After last week's 16% share price gain to Kr520, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 13x in the Machinery industry in Europe. Total loss to shareholders of 8.2% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Kr571 per share. Major Estimate Revision • Sep 24
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from €0.10 to €0.08. Revenue forecast unchanged from €1.64b at last update. Net income forecast to grow 19% next year vs 18% growth forecast for Machinery industry in Europe. Consensus price target broadly unchanged at Kr636. Share price fell 11% to Kr478 over the past week. Valuation Update With 7 Day Price Move • Sep 22
Investor sentiment deteriorated over the past week After last week's 16% share price decline to Kr476, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 12x in the Machinery industry in Europe. Total loss to shareholders of 14% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Kr689 per share. Buying Opportunity • Sep 16
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 6.0%. The fair value is estimated to be Kr690, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.1% over the last 3 years. Earnings per share has declined by 13%. For the next 3 years, revenue is forecast to grow by 9.6% per annum. Earnings is also forecast to grow by 31% per annum over the same time period. Buying Opportunity • Aug 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 9.9%. The fair value is estimated to be Kr685, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.1% over the last 3 years. Earnings per share has declined by 13%. For the next 3 years, revenue is forecast to grow by 9.6% per annum. Earnings is also forecast to grow by 31% per annum over the same time period. Major Estimate Revision • Aug 09
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from €1.62b to €1.64b. EPS estimate fell from €0.15 to €0.10 per share. Net income forecast to grow 21% next year vs 14% growth forecast for Machinery industry in Europe. Consensus price target down from Kr953 to Kr644. Share price was steady at Kr600 over the past week. Reported Earnings • Jul 28
Second quarter 2022 earnings released: EPS: €0.013 (vs €0.031 in 2Q 2021) Second quarter 2022 results: EPS: €0.013 (down from €0.031 in 2Q 2021). Revenue: €397.3m (up 21% from 2Q 2021). Net income: €9.60m (down 59% from 2Q 2021). Profit margin: 2.4% (down from 7.2% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 15%, compared to a 14% growth forecast for the industry in Europe. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Buying Opportunity • Jul 20
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 17%. The fair value is estimated to be Kr773, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.9% over the last 3 years. Earnings per share has declined by 14%. Revenue is forecast to grow by 31% in 2 years. Earnings is forecast to grow by 74% in the next 2 years. Major Estimate Revision • May 07
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from €1.50b to €1.57b. EPS estimate fell from €0.18 to €0.15 per share. Net income forecast to grow 30% next year vs 17% growth forecast for Machinery industry in Europe. Consensus price target up from Kr899 to Kr940. Share price fell 4.0% to Kr668 over the past week. Reported Earnings • Apr 28
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: €0.029 (up from €0.028 in 1Q 2021). Revenue: €371.6m (up 11% from 1Q 2021). Net income: €21.7m (up 2.4% from 1Q 2021). Profit margin: 5.8% (down from 6.3% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) missed analyst estimates by 9.1%. Over the next year, revenue is forecast to grow 9.8%, compared to a 16% growth forecast for the industry in Europe. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Apr 23
Marel hf. (ICSE:MAREL) acquired Sleegers Technique. Marel hf. (ICSE:MAREL) acquired Sleegers Technique on April 22, 2022. For the year 2021, Sleegers Technique reported turnover of €5 million.
Marel hf. (ICSE:MAREL) completed the acquisition of Sleegers Technique on April 22, 2022. Upcoming Dividend • Mar 11
Upcoming dividend of €0.051 per share Eligible shareholders must have bought the stock before 18 March 2022. Payment date: 30 March 2022. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Icelandic dividend payers (6.2%). Lower than average of industry peers (2.3%). Major Estimate Revision • Feb 11
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from €1.50b to €1.52b. EPS estimate fell from €0.20 to €0.18 per share. Net income forecast to grow 37% next year vs 19% growth forecast for Machinery industry in Europe. Consensus price target broadly unchanged at Kr944. Share price rose 2.6% to Kr798 over the past week. Reported Earnings • Feb 08
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: €0.13 (down from €0.14 in FY 2020). Revenue: €1.36b (up 9.9% from FY 2020). Net income: €96.8m (down 5.6% from FY 2020). Profit margin: 7.1% (down from 8.3% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.1%. Over the next year, revenue is forecast to grow 12%, compared to a 16% growth forecast for the industry in Europe. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 21% per year, which means it is well ahead of earnings. Announcement • Feb 04
Marel hf. Proposes Dividend for the Year 2021 Marel hf. announced that In line with Marel’s targeted capital allocation and dividend policy of 20-40% payout ratio, the Board of Directors will propose a 40% payout ratio at the 2022 Annual General Meeting, to be held on 16 March 2022 (2021: 40%, 2020: 40%). Based on a EUR 5.12 cents dividend per outstanding share paid for the operational year 2021, or 6% lower per share than in 2020, the estimated total dividend payment will be around EUR 38.7m. Reported Earnings • Oct 22
Third quarter 2021 earnings released: EPS €0.031 (vs €0.039 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: €331.9m (up 16% from 3Q 2020). Net income: €23.4m (down 20% from 3Q 2020). Profit margin: 7.1% (down from 10% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 28% per year, which means it is well ahead of earnings. Reported Earnings • Jul 23
Second quarter 2021 earnings released: EPS €0.031 (vs €0.041 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: €327.5m (up 7.1% from 2Q 2020). Net income: €23.6m (down 23% from 2Q 2020). Profit margin: 7.2% (down from 10.0% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 35% per year, which means it is well ahead of earnings. Announcement • Jul 07
Marel hf. (ICSE:MAREL) agreed to acquire 90% stake in Valka ehf. Marel hf. (ICSE:MAREL) agreed to acquire 90% stake in Valka ehf. on July 5, 2021. The purchase price is paid 50% in cash and 50% in Marel shares, except for smaller shareholders who will have the option of a full cash payment. Sellers that receive Marel shares will undertake a lock-up period of 18 months. Marel will offer all remaining shareholders to acquire their shares on the same terms with the objective to acquire 100% of the shares. The acquisition is financed through Marel's strong balance sheet, existing credit facilities, and available treasury shares. Valka ehf reported revenues of €17 million in 2020. Helgi Hjálmarsson, Valka's Founder and Chief Executive Officer will take on a role as Director of Solution Integrity within Marel. The closing of the acquisition is subject to customary closing conditions, including anti-trust approval from the Icelandic Anti-trust Authority, and is expected to take place later this year.