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Scanfil: Strong improvement trend is slowing down - Nordea

Scanfil's Q3 net sales and EBIT were close to consensus expectations, while its operating profit margin came in well above its long-term financial target, making further improvements difficult. Customers are concentrating on cash flow and reducing inventories, which will also make it harder to generate strong revenue growth in the near future. The company's 2023 guidance from 10 October 2023 did not change. Due to the slowdown in orders, we forecast only 1% revenue growth for 2024 with lower EBIT y/y. Our fair value range for Scanfil remains at EUR 8.0-9.8, based on three equally weighted valuation approaches (DCF, EV/EBITDA and P/E). Marketing material commissioned by Scanfil Oyj.

Scanfil's Q3 net sales and EBIT were close to consensus expectations, while its operating profit margin came in well above its long-term financial target, making further improvements difficult. Customers are concentrating on cash flow and reducing inventories, which will also make it harder to generate strong revenue growth in the near future. The company's 2023 guidance from 10 October 2023 did not change. Due to the slowdown in orders, we forecast only 1% revenue growth for 2024 with lower EBIT y/y. Our fair value range for Scanfil remains at EUR 8.0-9.8, based on three equally weighted valuation approaches (DCF, EV/EBITDA and P/E). Marketing material commissioned by Scanfil Oyj.
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