Analysts with coverage on Kreate
- Mika Karppinen, Danske Bank
- Olli Koponen, Inderes
Danske Bank’s analyst reports
Ahead of Q1 25 results due 24 April:
Kreate’s Q1 is always seasonally really low quarter. The short term volume weakness will limit the margin improvement in Q1 but we expect the trend to start improving in the coming quarters driven by the recovering volumes. In our view the margin recovery is the biggest trigger for the share. The recently announced tender wins in railway projects and expected infra market recovery indicate improving sales growth rates for the coming years. Valuation discount to peers is sizeable. We have a fair value range of EUR 8.0-9.4 for the share.
Further margin improvement from the higher volumes expected during 2025. Kreate’s margins improved quite well during 2024 driven by the better project management. Recently sales volumes have been under pressure due to the weakened order book but we expect the order flow to clearly start to improve during 2025, giving further leverage to the margins as well. We believe that the tendering activity is gradually starting to pick up also in the building foundation works segment, which is supportive for the whole construction industry in Finland in 2025.
Q1 expectations. We expect Kreate’s revenues to have continued to decline in Q1 diluted by the weakened order backlog. We forecast Q1 revenue decline of 8% y/y with EBITA margin of 0.4% versus previous year’s 0.5%. Q1 is seasonally really low quarter for Kreate. Our earnings estimates are in line with LSEG Data & Analytics consensus.
Valuation. Kreate trades at 2024E EV/EBITA of 9x, a 41% discount compared to the peer group.
Read the analyst reports:
Post Q4 2024 (5 February 2025)
Post Q3 2024 (25 October 2024)
Post Q2 2024 (16 July 2024)
Post Q1 2024 (26 April 2024)
Inderes’s analyst reports
After Q4 24 results (6 February):
We reiterate our EUR 8.00 target price and Accumulate recommendation for Kreate following the Q4 report. In 2024, Kreate was able to improve margins and this year, revenue growth will drive earnings growth. Beyond the subdued short-term market outlook, the expected return is attractive thanks to earnings growth and the dividend.
Read the whole analysis:
Company analysis Q4 2024 by Inderes (6 February 2025)
Company analysis Q3 2024 by Inderes (28 October 2024)
Extensive report on Kreate by Inderes (1 October 2024)
Company analysis Q2 2024 by Inderes (17 July 2024)
Company analysis Q1 2024 by Inderes (29 April 2024)
Company analysis Q4 2023 by Inderes (1 Feb 2024)
Extensive report on Kreate by Inderes (28 Nov 2023)
All Inderes reports
All comments and reports by Inderes can be found on their website.
Read all analyst reports by InderesThe analyses produced by the aforementioned analysts are independent and impartial views of those following Kreate. Kreate is not responsible for the veracity, completeness or use of the information by anyone. The information does not represent the views, forecasts or estimates of Kreate or its management and is not intended to be investment advice. Kreate is in no way responsible for your use of the content provided on the site.