Empresaria Share Discussion Threads

[sharesoc] 25/2/2017 16:44

Empresaria present at our next London seminar on the 8th March, may be of interest:

[jeff h] 22/2/2017 08:19

Been a long time coming but good to see this stock getting a reasonable price rating, though still not expensive.

[pauliewonder] 21/2/2017 12:33

Nice price movement today. May see some more rises up until results on 1st. Still plenty left in the tank here given how robustly they are trading.

[aishah] 03/2/2017 15:37

Up on volume well above ADV. Tipped somewhere? SCSW should cover the results in tomorrow's issue - hoping for a positive write up.

[aishah] 27/1/2017 10:46

Multi-brand strategy paying off for Empresaria
13:45 24 Jan 2017
Double-digit earnings growth has become the norm at the recruitment group, even in a sometimes tricky 2016

r o activeinvestors.co.uk/companies/news/172113/multi-brand-strategy-paying-off-for-empresaria-172113.html

[penpont] 24/1/2017 08:39

Arden have upped 2016 eps by 4%:

The trading update confirms another year of double digit earnings growth for Empresaria. We anticipate acceleration in growth rates in FY17 reflecting organic growth, acquisition contribution and FX tailwinds; Arden forecast FY17 earnings growth of 24%. We believe this is not reflected in a FY17 valuation of 8.4x, with the relationship to growth expressed in a Price Earnings Growth ratio of 0.35x. The valuation is inconsistent with current trading, geographical alignment and delivery of the strategy to acquire niche growth businesses such as Rishworth and ConSol, which are fundamentally improving the quality of earnings at Empresaria. The shares represent a conviction Buy.

[graham1ty] 24/1/2017 07:59

Earlier indications were of a very substantial uplift. Ironically therefore these might disappoint. Still going to be on a historic multiple of less than 10

[graham1ty] 24/1/2017 07:52

Earlier indications were of a very substantial uplift. Ironically therefore these might disappoint. Still going to be on a historic multiple of less than 10

[shaunstar] 24/1/2017 07:27

How much of the 'ahead' results is due to favourable currency translation?
I'd say quite key to understanding underlying business performance,...

[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.