Nexam Chemical: Moving in the right direction - ABG

Q4e: sales SEK 50m, up +9% q-o-q, EBIT -2m (-4m)
Minor estimate changes, eyeing profitable growth in '24e-'25e
Trading at 1.5-1.1x EV/Sales, fair value SEK 3-5


Q4e: Continued sequential improvement

For Q4e, we expect sales of SEK 50m, down -10% y-o-y, but up +9% q-o-q, as we expect continued recovery from the Q2 low. We estimate sales will be split evenly between the two segments. The sequential improvement in sales will in our view trickle down the income statement and lead to improved profitability, as the cost savings programme continues to have an incremental effect. We estimate EBIT of SEK -2m (-4m), for a margin of -3% (-8%), and EPS of SEK -0.03 (-0.06). We expect some NWC release in the quarter, resulting in lease adj. FCF of SEK 2m (-22m), leaving the company with a cash balance of SEK 18m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nexam-chemical/Equity-research/2024/1/nexam-chemical---moving-in-the-right-direction/