Buy signal on SPIE
SPIE is a €2.6 Bn market cap, and specializes in multi-technical services in the fields of electrical, mechanical and climatic engineering, communication systems as well as specialized services related to energy. The group is focused in the design, construction, operation and maintenance of energy-efficient and environmentally friendly installations. Spie’s revenue is focused on France (43% of sales) and Germany (27% of sales) and the remaining 30% are achieved mainly in Europe.
Spie has a strong position in energy management and renewables as well as Electric mobility and is well positionned to benefit from stimulus investements. It confirmed a strong resilience in H1-2020 (-9% organic sales 3.1% EBITDA margin) and strong cash-flow management (€377M debt reduction).
The high leverage (3.6x EBITDA) remains a concern, but SPIE could confirm a rapid recovery frome June is in process.
Short term catalyst: Stimulus investments, deleveraging.
This signal looks consistent with the European Construction & Industrial sectors which are in major bullish momentum.