The bleeding in Fluidra seems to have no end. She was already the most bearish of the entire Ibex but now she is widening the gap with her pursuers. This Thursday her titles fell another 5.2% and already add up to a 57% drop so far this year.
The very strong decline that is starring this course has led it to trade below 16 euros, at a minimum of November 2020. The punishment is given by different factors, but essentially it is due to the fear that the demand for its products will deteriorate.
In their latest results they confirmed that world demand is undergoing a change in trend. However, they managed to maintain income thanks to their price increase policy, in addition to inorganic movements. At the sector level, they mentioned that it was returning to historical patterns prior to the pandemic, which still offer growth above global GDP itself. Looking ahead to the rest of the year, they expect a normalization of inventories that will reduce volume.
In this presentation they took the opportunity to adjust the objectives of the short-term strategic plan, increasing the sales perspective but reducing the EBITDA due to pressure on margins.
From Renta 4 they also point to the real estate market in the United States, “which is showing data of a strong deterioration.” “However, the new construction market has less relevance in Fluidra’s business volume every day, since the largest volume of swimming pools is built in existing homes, in addition, of course, to the income from the maintenance segment , whose base is growing year after year”, they conclude.
Almost 100% potential
The stock market crash has also been coupled with a deterioration in expert valuations. However, they have not been as pronounced so its potential up to the target price has increased to the point where it is approaching a 100% run. Likewise, it receives one of the best recommendations of the entire Ibex 35.
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