London, UK, 4 October 2022

Kendrion (KENDR): CMD confirms strategic direction and targets

At its capital markets day on 8 September, Kendrion reiterated its financial targets for 2025 (originally set in September 2020) and confirmed its strategic direction. The Industrial division is continuing strong growth in revenues and profitability (despite market challenges), while Automotive still is affected by supply chain constraints, inflation and volatile demand. The long-term growth outlook for Kendrion remains strong, based on the favourable trends of electrification and green energy. The average of three valuation methods points at a value per share of €21.7.

Kendrion is valued at a 2022e EV/EBITDA of 6.4x and a P/E of 9.4x. The average of historical multiples, DCF and peer comparison points at a value per share of €21.7 (from €22.2 in our previous update due to lower peer multiples). Kendrion is trading at a discount to peers of 17% on 2022e EV/EBITDA, which could diminish over time as the company demonstrates accelerating growth and higher profitability.  

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