Equity research report: Fielmann - all eyes on growth - market analysis, valuation and esg

Abstract

This paper is part of the “All Eyes on Growth” Equity Research report which conducts a comprehensive analysis of the Fielmann Group AG, a leading player in the optical retail industry, with the primary goal of assessing its total shareholder's return over a one-year period. The report combines company analysis, financial analysis, industry overview, forecasting and valuation methodologies as well as key risks and ESG to formulate an investment recommendation for investors. The Equity Research report recommends a HOLD position as the current share price (as of 18.12.2023) of €48.94 does not allow for much capital gain due to a calculated target share price of €49.48. Together with a forecasted dividend of €0.51 in 2024, we expect a total return of +2.16% until the end of 2024. Fielmann Group AG benefits from high value chain integration of its vertically integrated business model which allows for high quality and cost control. Its top-line will be mainly driven by market trends as well as expansion in new markets such as Spain and the USA. However, with high inflation margins could suffer due to its price leadership position which prevents Fielmann to transfer cost increases to its customers.