{"id":31280,"date":"2022-05-11T09:32:44","date_gmt":"2022-05-11T07:32:44","guid":{"rendered":"https:\/\/staging.capitalmind.com\/industrial-tech-valuation-update-may-2022\/"},"modified":"2022-05-11T09:47:52","modified_gmt":"2022-05-11T07:47:52","slug":"industrial-tech-valuation-update-may-2022","status":"publish","type":"post","link":"https:\/\/dev2.capitalmind.com\/nl\/industrial-tech-valuation-update-may-2022\/","title":{"rendered":"Industrial Tech Valuation update May 2022"},"content":{"rendered":"<h2>Industrial Technology Overview<\/h2>\n<p><strong>DEVELOPMENT MARKET CAPITALIZATION &amp; EV\/EBITDA <\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31186 size-large\" src=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/MarketCap_EVEBITDA.jpg-1024x433.png\" alt=\"\" width=\"1024\" height=\"433\" srcset=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/MarketCap_EVEBITDA.jpg-1024x433.png 1024w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/MarketCap_EVEBITDA.jpg-800x338.png 800w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/MarketCap_EVEBITDA.jpg-768x325.png 768w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/MarketCap_EVEBITDA.jpg-1536x649.png 1536w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/MarketCap_EVEBITDA.jpg-2048x866.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><strong>Industrial Technology Index falls 16% since record high in Jan. 2022 \u2013 Main factors:<\/strong><\/p>\n<ul>\n<li>War in Ukraine<\/li>\n<li>Ongoing covid pandemic, resulting in limited availability of goods and global supply chain disruptions<\/li>\n<li>Cost increases (material &amp; energy) &#8211; can only be passed through partially \/ with delay<\/li>\n<li>Interest rate hikes (announced in USA &amp; expected in EU), compare also inflation<\/li>\n<\/ul>\n<p><strong>EV\/EBITDA Multiple over 3 months down from 14.0x to 12.2x \u2013 Main factors:<\/strong><\/p>\n<ul>\n<li>-16% Equity values \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 Multiple impact: Down<\/li>\n<li>+5% Net Debt \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 Multiple impact: Up<\/li>\n<li>+3% EBITDA \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Multiple impact: Down<\/li>\n<\/ul>\n<p><strong>Falling valuations hit entire economy (period Jan. \u2013 May 2022):<\/strong><\/p>\n<ul>\n<li>-15% Dax 40<\/li>\n<li>-21% TecDax<\/li>\n<li>-16% MDax<\/li>\n<li>-18% SDax<\/li>\n<li>-13% Euro STOXX 50<\/li>\n<li>-13% S&amp;P 500<\/li>\n<\/ul>\n<p>Industry \/ technology companies thus equally affected &#8211; despite dependence on capital investment.<\/p>\n<p><strong>Outlook EBITDA Industrial Technology Index<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31190 size-large\" src=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Forecast.jpg-1024x401.png\" alt=\"\" width=\"1024\" height=\"401\" srcset=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Forecast.jpg-1024x401.png 1024w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Forecast.jpg-800x313.png 800w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Forecast.jpg-768x301.png 768w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Forecast.jpg-1536x601.png 1536w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Forecast.jpg-2048x801.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><strong>Outlook positive (forecast):<\/strong><\/p>\n<p>EBITDAs generated in absolute terms increase favorably until 2023 (+10% p.a.):<\/p>\n<ul>\n<li>Rising revenues (+6% p.a.)<\/li>\n<li>Rising profitability (EBITDA margin: 16-18%)<\/li>\n<\/ul>\n<p>Key question: To what extent have the above-mentioned negative factors already been considered, have the outlooks been updated and what are the underlying scenarios?<\/p>\n<p><strong>Current Issues &amp; Outlook:<\/strong><\/p>\n<p>In the short term, current developments are weighing heavily on the market, and we can only speculate about a quick recovery. The outcome of the escalating situation in Ukraine is unclear, with increasing involvement of the Western world (e.g., USA $33MRD) there are 3 main scenarios:<\/p>\n<ul>\n<li>Hope for early calm (Diplomatic solution)<\/li>\n<li>Long-term dragging of the conflict (Ukraine resists Western support)<\/li>\n<li>Further, international escalation (Russia reacts against the Western supporting nations)<\/li>\n<\/ul>\n<p>The current short\/medium-term trend (on the stock markets) is pointing downwards.<\/p>\n<p>Despite these (hopefully) short-term challenges, the Investec industry team believes that the medium- to long-term upside potential of the industrial tech sector remains considerable.<\/p>\n<p>Fundamental growth drivers of innovative industrial companies remain intact and are gaining in importance as investments are increasingly driven by, among others:<\/p>\n<ul>\n<li>ESG-aspects, such as energy efficiency<\/li>\n<li>Just-in-time \/ \u201eSame Day\u201c requirements of the end markets<\/li>\n<li>Cost &#8211; efficient production in DE \/ EU (technology \/ automation &#8211; supported)<\/li>\n<li>Networking of the value chain across the entire company &amp; with partners (PLC to ERP)<\/li>\n<\/ul>\n<p><strong>ANNEX:<\/strong><\/p>\n<p><strong>EBITDA-multiples by sub-sector: Sep. 2019 (Pre-Covid) \u2013 May 2022<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31194 size-large\" src=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Multiples.jpg-1024x512.png\" alt=\"\" width=\"1024\" height=\"512\" srcset=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Multiples.jpg-1024x512.png 1024w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Multiples.jpg-800x400.png 800w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Multiples.jpg-768x384.png 768w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Multiples.jpg-1536x768.png 1536w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/EBITDA_Multiples.jpg-2048x1024.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><strong>Development of market capitalization by sub-sector: Sep. 2019 \u2013 May 2022 (+27%)<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31198 size-large\" src=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development-MarketCap-1024x418.png\" alt=\"\" width=\"1024\" height=\"418\" srcset=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development-MarketCap-1024x418.png 1024w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development-MarketCap-800x326.png 800w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development-MarketCap-768x313.png 768w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development-MarketCap-1536x627.png 1536w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development-MarketCap-2048x836.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><strong>EBITDA-margin by sector from 2019 to 2023 (in %):<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31202 size-large\" src=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development_EBITDA_Margin.jpg-1024x477.png\" alt=\"\" width=\"1024\" height=\"477\" srcset=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development_EBITDA_Margin.jpg-1024x477.png 1024w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development_EBITDA_Margin.jpg-800x373.png 800w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development_EBITDA_Margin.jpg-768x358.png 768w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development_EBITDA_Margin.jpg-1536x715.png 1536w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Development_EBITDA_Margin.jpg-2048x954.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><strong>EBITDA growth by sector from 2019 to 2023 (in %):<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31206 size-large\" src=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Growth_EBITDA.jpg-1024x458.png\" alt=\"\" width=\"1024\" height=\"458\" srcset=\"https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Growth_EBITDA.jpg-1024x458.png 1024w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Growth_EBITDA.jpg-800x358.png 800w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Growth_EBITDA.jpg-768x343.png 768w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Growth_EBITDA.jpg-1536x687.png 1536w, https:\/\/dev2.capitalmind.com\/wp-content\/uploads\/2022\/05\/Growth_EBITDA.jpg-2048x916.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><strong>Investec &amp; Industrial Technology<\/strong><\/p>\n<p>The Investec Industrial Technology index tracks daily developments in sectors such as Control Tech, Industrial Software, Integrated Providers, Engineering, Machinery, Vision Tech &amp; Robots\/Motions.<\/p>\n<p>The index includes valuations, growth projections, profitability margins and other metrics.<\/p>\n<p>Would you like to learn more about valuations, buyer activity and current opportunities in the market?<\/p>\n<p>Please do not hesitate to contact us.<\/p>\n<p>You can find more information on our website at <a href=\"https:\/\/dev2.capitalmind.com\/nl\/sector-expertise\/industrie-2\/\" target=\"_blank\" rel=\"noopener\">https:\/\/dev2.capitalmind.com\/industrials\/<\/a><strong>\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Industrial Technology Overview DEVELOPMENT MARKET CAPITALIZATION &amp; EV\/EBITDA Industrial Technology Index falls 16% since record high in Jan. 2022 \u2013&#8230;<\/p>\n","protected":false},"author":17,"featured_media":31182,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3799],"tags":[],"news-event-type":[],"dealtype":[],"blog-tag":[],"class_list":["post-31280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sector-en-product-nieuws-nl","ps-industrials-nl"],"acf":[],"_links":{"self":[{"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/posts\/31280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/comments?post=31280"}],"version-history":[{"count":0,"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/posts\/31280\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/media\/31182"}],"wp:attachment":[{"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/media?parent=31280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/categories?post=31280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/tags?post=31280"},{"taxonomy":"news-event-type","embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/news-event-type?post=31280"},{"taxonomy":"dealtype","embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/dealtype?post=31280"},{"taxonomy":"blog-tag","embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/nl\/wp-json\/wp\/v2\/blog-tag?post=31280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}