Edison Investment Research Limited: Edison issues update on SNP Schneider-Neureither & Partner (SHF)

Edison Investment Research Limited

03-Nov-2017 / 11:11 GMT/BST


London, UK, 3 November 2017

Edison issues update on SNP Schneider-Neureither & Partner (SHF)

2017 has been a year of major change for SNP, including two major acquisitions, debt and equity capital raisings, corporate restructurings, new product offerings launched and new training centres established. This has involved significant cost in both financial terms and management time. There has been EUR4m in one-off costs, and management expects to report break-even at the EBIT level in FY17. Excluding one-off costs, the FY17 EBIT margin is expected be c 3.3%. Following the acquisitions, the group now has a presence in most major regions globally. Hence, SNP now looks better positioned to deliver on its goal to be the global leader in software-based transformation projects. Following the recent correction, we believe the shares look increasingly attractive on c 18x our FY19e EPS.

The stock trades on c 37x our FY18e EPS, which falls to c 18x in FY19e. Our discounted cash flow valuation (based on c 7.6% organic revenue CAGR over 10 years, 10% WACC, 16% long-term margin and 2% terminal growth) is EUR40.75/share, 41% above the current share price.

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website
www.edisoninvestmentresearch.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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:

Richard Jeans, +44 (0)20 3077 5700
Katherine Thompson, +44 (0)20 3077 5730
tech@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on:
LinkedIn https://www.linkedin.com/company/edison-investment-research
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv



Dissemination of a FINANCIAL NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


End of Announcement - EQS News Service

show this