Why TKH Group NV Deserves a Spot in Your Portfolio 2025

Buy signal | Free publication | 27 Dec 2024

Summary of the activities of TKH Group NV

TKH Group NV is a Dutch technology company specialising in the development and supply of systems and networks for telecommunications, electrical engineering and industrial production. It operates in three segments.

Telecom Solutions: telecommunications networks and fibre optic systems for indoors and outdoors.
Building Solutions: security and connectivity systems for hospitals, homes and offices.
Industrial Solutions: connectivity, automation and manufacturing systems for the industrial sector.

Valuation of TKH Group NV

Turnover : 4/5 - Remarkable growth from €1.523m in 2021 to €1.847m in 2023, with a forecast of €2.135m in 2028, demonstrating strong growth momentum.
Net profit : 4/5 - A very positive trend in net profit, rising from €95.21m in 2021 to €165.7m in 2023, with a projection of €197.7m in 2028, reflecting excellent operational management.
Debt : 3/5 - Net debt of €554m in 2024 is under control, with a downward trend forecast to €437m in 2026, demonstrating prudent management of the balance sheet.
Return on equity (ROE) : 4/5 - Solid ROE of 16.09% in 2024, with a projection of 14.08% in 2026, indicating excellent efficiency in the use of equity capital.
Market performance : 4/5 - Steady EPS growth, rising book value and stable dividend policy, demonstrating good stock market performance.

Average : 3,8/5 - TKH Group NV has a solid financial profile with sustained growth and balanced debt management. The majority of financial indicators are positive.

Forecasts for the coming years

2025 : EPS forecast at €3.177 with an ROE of 12.52%. Sales are expected to reach €1.838m, with an improved EBITDA margin.
2026 : EPS expected at €3.761, with an ROE of 14.08%. Projected turnover of €1.942m confirm the upward trend.

Estimated share value

According to our projections, TKH Group NV's share price could reach around €47 in 2025 and €56 in 2026, based on an estimated P/E of 25.

Summary

TKH Group NV stands out for its financial strength and attractive growth prospects. The company deserves a significant place in a diversified portfolio, supported by its efficient management and positive projections.

Signal : Buy
Budget/Investment: Moderate to High
Reinforcement required : Yes, on fallback
Exposure: Significant
Horizon : 2 to 3 years
Potential profitability : +40% to +65%
Ref. ISIN code : NL0000852523