Added to YB: 2024-03-11
Pitch date: 2024-03-11
STG.CO [neutral]
Scandinavian Tobacco Group A/S
-8.51%
current return
Author Info
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Company Info
Scandinavian Tobacco Group A/S manufactures and sells cigars and pipe tobacco in the United States, Europe, and internationally.
Market Cap
DKK 8.7B
Pitch Price
DKK 101.10
Price Target
N/A
Dividend
7.76%
EV/EBITDA
6.95
P/E
8.92
EV/Sales
1.57
Sector
Tobacco
Category
growth
Scandinavian Tobacco Group: Across the Board
STG.CO: Net sales up to DKK 8.7B, 30% growth '18-'23. Strong EBITDA margin at 24.1%, FCF > DKK 1B/year. EPS & ROIC surged; DKK 5B to investors in 5y. Brace for '24: new NGP markets, 4 retail superstores, handmade cigars intl' expansion, DKK 300M costs. Equity repurchase DKK 850M till '25, lever ratio 1.9x. '23 Europe Brand saw modest sales but high costs; NABROW -5% sales with FX woes; NAOR +2% sales, +10% EBITDA. '24 guidance: DKK 8.8-9.1B sales, 22-24% EBITDA margin, FCF DKK 0.8-1B, EPS DKK 12.5-14.5. Conservative model suggests EPS at low guidance, trading at 6.75x EV/EBITDA, below 2.5x target leverage. Post-'25 margin recovery expected.
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