Arcadis (1K) | Buy | Self-help outpacing sector noise

研报英文原文证据摘录

Arcadis (1K) | Buy | Self-help outpacing sector noise

t org. growth and stemming from changes in the strategic set-up. More broadly,

improved FCF. general macroeconomic developments also represent a risk.

Catalysts n The cancellation or postponement of federal investment

n Large project wins and government infrastructure spending plans.

announcements. n Acquisition execution risk, particularly around integration and

n Quarterly figures and company announcements (e.g M&A, synergy delivery, could pressure margins and cash flow.

share buybacks).

n Evidence of pricing power in contract renewals.

Key data charts

FCF Sales split by region Sales split by division

350.0 12.0% Continental

Europe

300.0 10.0% 3.0%6.0% 18.1% Resilience 2%

UK & Ireland 250.0

8.0%

200.0 36% 38%

6.0% North America Mobility

150.0

4.0% Latam 46.2% 24.3% 100.0

50.0 2.0% Places

Australia 25%

0.0 0.0%

21 22 23 24 25 26E 27E 28E

Intelligence Att. FCF (m) (LHS) Att. FCF Yield

SWOT analysis

Strengths Weaknesses

n Top three market positions in environmental markets n Complex organizational structure

n Diversified regional presence n Low organic growth versus peers

n Margin improvement trajectory n Historically poor working capital and cash flow management

n Strong cash flow generating capability n Cyclicality from property investment business

Opportunities Threats

n Emerging market growth. n Public spending cuts

n Industry consolidation n Capex reduction by key clients.

n Long-term growth drivers in place n Shift to design & build in certain markets

n Offshoring trend. n Shortage of skilled staff, especially in Europe

Price performanceSales split by regionSales split by divisionFCFSales and EBITDA marginFCF and Capex to sales

keplercheuvreux.com 3