Empresaria Share Discussion Threads

[spbcscw] 24/1/2017 07:21

Gosh these guys are modest. That's another excellent set of results.

[graham1ty] 23/1/2017 16:25

Trading statement tomorrow. Good luck all

[aishah] 20/1/2017 10:01

Should be nearer 200p imo. Strong momentum now. dyor

[harrogate] 20/1/2017 09:35

EMR very perky - ahead of trading update next Tuesday. Currency should have been helpful and outside UK other recruiters seem to have done well. Fingers crossed

[aishah] 16/1/2017 13:17

HAS,STHR,PAGE,RWA all trade on mid-teens p/e. Apply that here to see where we'd get to!

[qs99] 16/1/2017 11:30

hopefully market may give it a bigger re-rating than 1 on the p/e ratio....but people can work out the upside depending on where they see that re-rating!
GLA

[davebowler] 16/1/2017 11:21

Very helpful.

[qs99] 16/1/2017 09:45

looks very interesting thnx for posting note

[aishah] 16/1/2017 09:28

From the Capital Network note @104p:

BALANCED GROWTH
Empresaria looks strikingly inexpensive on a 2016e PE of 9x (Capital Network
forecast) for a stock which keeps delivering strong double-digit EPS growth (2015:
24%, 2014: 29%, 2013: 24%, 2012: 25%).

In this report we provide a brief refresher on the growth model and the reasons we
believe it will keep on delivering in the coming years.

The company describes itself as an international, multi-brand, specialist staffing
group, and we argue that the success of Empresaria’s strategy reflects its leverage
to one major secular growth trend – the emergence of flexible employment
practises in higher-skilled job functions across many global markets.

In addition to this structural growth trend, you have a measured, accretive
acquisition strategy, and a programme of continuous profitability enhancement that
still has some headroom for further gains. Taken all together, it’s a balanced EPS
growth story.

PROVING RESILIENCE
The company will provide a trading update January 21st, and we believe this could
provide evidence of the sustainability of Empresaria’s earnings growth, ahead of
the full results release March 2nd.

The key thing to consider is that 2016 has been a tougher year for the wider
staffing services sector, with several sector peers issuing profits warnings or weak
guidance. A solid update from Empresaria would help to confirm that this company
is a structural growth business and not merely a cyclical one.

VALUATION – THE FALSE BENCHMARKING SYNDROME
We’d argue that a stock with consistent double-digit EPS growth should normally
trade on a P/E in the teens rather than the 9x currently afforded to Empresaria. The
problem is index benchmarking lumps Empresaria together with enterprises that
are essentially UK temping agencies. Whereas Empresaria is neither UK-focussed
(35% EU ex-UK, 35% RoW, by Net Fee Income 2016e) nor does its business
model resemble the high-volume low value-add generalist agencies.

We recognise that the stock market likes to anchor valuations to some kind of
benchmark, and we don’t expect the shares to re-rate instantaneously. But, by way
of an illustration of the potential upside, we note that if the company delivers our
13.5p EPS for 2017e, and the market rewards this with just a re-rating from 9x to
10x P/E, that would get you 135p as a December 2017 share price.

[maffs1] 10/1/2017 18:11

Thanks for the link. That explains the rise!

[aishah] 10/1/2017 08:43

r o a ctiveinvestors.co.uk/companies/stocktube/6695/capital-network-analyst-expecting-empresaria-to-report-impressive-growth-for-2016-6695.html

[jeff h] 09/1/2017 18:09

Capital Network analyst expecting Empresaria to report "impressive" growth for 2016

...see proactiveinvestors.co.uk

[maffs1] 09/1/2017 16:38

Good to see a nice rise today. The lack of news means that EMR does fluctuate in both directions. I'm hoping for an "in line with expectations" trading statement with a positive outlook. That should see a significant price jump.

The only question mark for me is debt and so I've been encouraged at the lack of recent acquisitions. It would be lovely to see debt come down :-)

[aishah] 09/1/2017 14:07

Flurry of buying today. Vol above ADV too. Tipped?

Trading update due soon (last year was 21st Jan).

[spbcscw] 13/12/2016 08:24

None... just crazy fluctuations on small volumes due to lack of liquidity.

[busterdog2] 08/12/2016 13:35

Had these on a watch list for a while. Any particular reason for the decline?

[tudes100] 22/11/2016 09:04

that would be nice but volumes are tiny

[aishah] 22/11/2016 08:51

Something up here. Are we in play??

[trier1] 06/10/2016 09:43

this acquisition looks expensive to me unless they are growing very rapidly indeed

[aishah] 14/9/2016 12:26

2017 fcst PEG of 0.37. I'll wait for 150p+

[battlebus2] 13/9/2016 12:45

Balances out the ITQ disaster....

[pj 1] 13/9/2016 12:38

Nice profit BB2, your on a roll last few weeks!

I can still see 30% from here

[battlebus2] 13/9/2016 12:36

I've sold my lather here PJ, it's been a great run from the 40's.

[pj 1] 13/9/2016 12:22

Not sure we have a shake, more like (distressed) seller?