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1. Company Snapshot

1.a. Company Description

D'Ieteren Group SA, operates as an investment company worldwide.The company operates through D'Ieteren Automotive, Belron, Moleskine, and TVH Parts segments.It distributes Volkswagen, Audi, SEAT, ŠKODA, Cupra, Bentley, Lamborghini, Bugatti, and Porsche brand vehicles, as well as its spare parts and accessories; sells used vehicles; and offers maintenance, financing, and leasing services.


The company also provides vehicle glass repair, replacement, and recalibration services under the Carglass, Safelite, and Autoglass brand names; and manages vehicle glass and other insurance claims on behalf of insurance customers.In addition, it offers notebooks, planners, writing tools, bags, and reading accessories, as well as smart writing system and mobile apps.Further, the company distributes aftermarket parts for material handling, construction, and agricultural & industrial equipment.


Additionally, it manages real estate assets, including offices, workshops, concessions, logistics centers, residential units, parking lots, and landbanks; reconverts and redevelops sites; and offers real estate advice.The company was founded in 1805 and is headquartered in Brussels, Belgium.

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1.b. Last Insights on DIE

D'Ieteren Group SA faced negative drivers, including a lackluster short-term run. Although no major announcements were made, investors are taking a closer look. The company's impressive long-term growth, 41.4% across the past three years and 336.8% over five years, is hard to ignore. Recent attention may be attributed to reassessing prospects without major news. There is no information on recent earnings releases, new products, legal issues, or share buybacks.

1.c. Company Highlights

2. D'Ieteren Group 2024 Earnings Call Summary

D'Ieteren Group reported a robust financial performance in 2024, with a 9.6% increase in adjusted PBT Group share, rising to 12.7% at constant currency. Free cash flow surged by 22.2% to over EUR740 million. The company maintained a strong operating margin across its segments, with Belron achieving a 70 basis point improvement and D'Ieteren Automotive posting a 5.1% return on sales. The group also announced a proposed dividend of EUR1.6 per share and the repayment of EUR250 million of its EUR500 million bridge loan.

Publication Date: Mar -12

📋 Highlights
  • D'Ieteren Group's Overall Performance: - Strong financial results with a 9.6% increase in adjusted PBT Group share, 12.7% at constant currency, and free cash flow up 22.2% to over EUR740 million.
  • Belron's Growth and Margin Improvement: - Sales growth of 6.8%, 10.5% increase in adjusted operating results, and a 70 basis point margin improvement. Adjusted PBT Group share was EUR462 million.
  • D'Ieteren Automotive's Performance: - 13.4% increase in adjusted PBT Group share, 5.1% return on sales margin, and free cash flow of EUR362 million, up 160% year-over-year.
  • PHE's Strong Results: - 8.1% sales growth (5.2% organic), 9.3% margin, and mid-single-digit organic growth expected in 2025 with stable margins.
  • TVH's Performance and Outlook: - Sales growth of 4.3%, 15.6% margin, and EUR262 million EBITDA. Margins are expected to decline in 2025 due to construction market growth outpacing NPA.
  • Moleskine's Challenges and Outlook: - Sales decline of 6.1%, but strong cash conversion at 81%. Mid-single-digit sales growth and margin improvement are expected in 2025 under new leadership.
  • Belron's U.S. Sourcing Challenges: - Tariffs on Chinese imports impact sourcing, but steps are in place to mitigate the impact. Francis Deprez emphasized the limited impact so far and ongoing discussions with the U.S. government.
  • Belron's Pricing Mix Impact: - Price/mix had a negative 1.5 percentage point impact on organic growth in 2024. This is expected to improve slightly in 2025, driven by ongoing market mix dynamics between insurance and cash businesses.
  • Belron's Dividend and Leverage Targets: - The group aims to reduce leverage and maintain a dividend of EUR1.6 per share. Net debt was reduced to EUR12 million, with free cash flow reaching EUR740 million.

Valuation Highlights

D'Ieteren Group's valuation metrics reflect its strong financial performance. The company's trailing twelve-month (TTM) P/E ratio of 21.18 indicates a premium valuation relative to its peers. The dividend yield of 50.49% highlights the company's commitment to returning capital to shareholders, while the free cash flow yield of 9.46% underscores its strong cash generation capabilities. The ROE of 11.19% and ROIC of 0.16% demonstrate efficient use of capital. The net debt-to-EBITDA ratio of 1.14 suggests manageable leverage, supporting the company's ability to invest in growth initiatives.

Segment Performance

Belron delivered a 6.8% sales increase, supported by a 10.5% rise in adjusted operating results and a 70 basis point margin improvement. D'Ieteren Automotive, despite a 6.4% decline in the new car market, maintained a 24% market share and achieved a record 5.1% operating margin. Free cash flow at D'Ieteren Auto surged to EUR362 million, up 160% year-over-year. The company also highlighted its leadership in the electric vehicle market with a 24.1% share. PHE reported an 8.1% sales growth, driven by strong organic growth and margin improvements. TVH saw a 30.5% increase in sales, with margins boosted by insurance income. Moleskine experienced a slight sales decline but maintained strong cash conversion at 81%.

Outlook and Key Initiatives</h2> <p>Looking ahead, D'Ieteren Group expects a slight increase in adjusted PBT Group share in 2025. Belron is targeting mid-single-digit organic growth, supported by margin improvements and strong free cash flow. The group aims to reduce leverage and continue its dividend policy. D'Ieteren Auto anticipates a low to mid-single-digit sales decline in 2025 due to mix normalization. PHE and TVH are targeting mid-single-digit organic growth, while Moleskine expects margin improvement under new leadership.</p> <h6>Analyst Questions and Management Responses

Analysts inquired about the price/mix effect on Belron's performance, with management indicating an expected slight improvement in 2025. The company emphasized its selective approach to market dynamics and ongoing efforts to optimize margins. The focus remains on disciplined execution to navigate market challenges and sustain growth across segments.

3. NewsRoom

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What Does the Steep 20% Drop Mean for Rémy Cointreau’s 2025 Outlook?

Sep -09

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Société Foncière Lyonnaise (ENXTPA:FLY): Assessing Valuation After a Year of Solid Share Price Gains

Sep -09

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Minor Hotels Europe & Americas (BME:NHH): Exploring Valuation After Steady Share Performance

Sep -09

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What Recent Earnings Mean for Forvia’s 2025 Value Prospects

Sep -09

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Assessing Veolia Environnement (ENXTPA:VIE) Valuation as Investors Eye Subtle Shifts in Utility Stocks

Sep -09

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Telenor (OB:TEL): Is the Market Underestimating Its True Value?

Sep -09

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How Will Vivendi’s Q1 Earnings Miss Impact Its 2025 Market Valuation?

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.09%)

6. Segments

Eliminations

Expected Growth: 10%

D'Ieteren Group SA's 10% growth is driven by strong demand for its automotive services, particularly in the Belgian market. The company's diversification into mobility solutions and its strategic partnerships have also contributed to its growth. Additionally, the group's focus on cost optimization and operational efficiency has enabled it to maintain a competitive edge.

Belron

Expected Growth: 15%

Belron's 15% growth is driven by increasing demand for windshield repair and replacement, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digitalization, customer experience, and operational efficiency has improved sales and profitability. Furthermore, Belron's strong brand reputation and partnerships with major insurance companies have contributed to its growth momentum.

D' Leteren Automotive

Expected Growth: 12%

D'Ieteren Automotive's 12% growth is driven by increasing demand for luxury vehicles, expansion into new markets, and strategic partnerships. The company's focus on sustainable mobility and innovative technologies also contributes to its growth. Additionally, the group's diversified revenue streams, including car distribution and mobility services, provide a solid foundation for continued growth.

Parts Holding Europe

Expected Growth: 11%

Parts Holding Europe's 11% growth is driven by increasing demand for automotive aftermarket parts, expansion into Eastern Europe, and strategic acquisitions. Additionally, the company's focus on digitalization, improving operational efficiency, and strong relationships with suppliers and customers contribute to its growth momentum.

Thermote and Vanhalst Parts

Expected Growth: 13%

Thermote and Vanhalst Parts' 13% growth is driven by increasing demand for automotive parts, expansion into new markets, and strategic partnerships. Additionally, investments in e-commerce platforms and digital marketing have enhanced customer experience, leading to higher sales. Furthermore, the segment's focus on sustainable and eco-friendly products has resonated with environmentally conscious consumers, contributing to its growth.

Moleskine

Expected Growth: 14%

Moleskine's 14% growth is driven by increasing demand for premium notebooks and writing accessories, expansion into new markets, particularly in Asia, and successful e-commerce strategies. Additionally, the brand's strong reputation, innovative products, and strategic partnerships contribute to its growth momentum.

7. Detailed Products

Volkswagen

D'Ieteren Group SA is the exclusive importer of Volkswagen vehicles in Belgium, offering a wide range of passenger cars, SUVs, and commercial vehicles.

Audi

D'Ieteren Group SA is also the exclusive importer of Audi vehicles in Belgium, offering a premium range of passenger cars and SUVs.

SEAT

D'Ieteren Group SA imports and distributes SEAT vehicles in Belgium, offering a range of stylish and affordable passenger cars and SUVs.

ŠKODA

D'Ieteren Group SA is the exclusive importer of ŠKODA vehicles in Belgium, offering a range of practical and spacious passenger cars and SUVs.

Moove

Moove is D'Ieteren Group SA's car-sharing service, offering a flexible and convenient mobility solution for individuals and businesses.

Belgian Garage Network

D'Ieteren Group SA operates a network of garages and workshops across Belgium, offering maintenance, repair, and bodywork services for various vehicle brands.

8. D'Ieteren Group SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for D'Ieteren Group SA is moderate due to the presence of alternative products and services in the automotive industry.

Bargaining Power Of Customers

The bargaining power of customers is low for D'Ieteren Group SA as customers have limited negotiating power due to the company's strong brand reputation and wide distribution network.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for D'Ieteren Group SA as the company relies on a few large suppliers for its automotive parts and services.

Threat Of New Entrants

The threat of new entrants is low for D'Ieteren Group SA due to the high barriers to entry in the automotive industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for D'Ieteren Group SA due to the presence of several established players in the automotive industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.99%
Debt Cost 9.87%
Equity Weight 68.01%
Equity Cost 9.87%
WACC 9.87%
Leverage 47.05%

11. Quality Control: D'Ieteren Group SA passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
DS Smith

A-Score: 5.7/10

Value: 8.3

Growth: 3.7

Quality: 3.8

Yield: 4.4

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
NEXT

A-Score: 5.6/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 4.4

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

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Inchcape

A-Score: 5.5/10

Value: 7.2

Growth: 5.9

Quality: 4.4

Yield: 6.2

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
D'Ieteren

A-Score: 5.4/10

Value: 5.1

Growth: 8.7

Quality: 4.4

Yield: 5.6

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Redrow

A-Score: 4.9/10

Value: 6.7

Growth: 3.8

Quality: 7.4

Yield: 4.4

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Taylor Wimpey

A-Score: 4.7/10

Value: 4.4

Growth: 1.6

Quality: 5.1

Yield: 8.8

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

148.2$

Current Price

148.2$

Potential

-0.00%

Expected Cash-Flows