Doosan Enerbility (034020) Earnings: 2Q Operating Profit Falls Short of Estimates Despite Sales Growth

Doosan Enerbility on Smartkarma

Analysts on Smartkarma have provided mixed coverage on Doosan Enerbility (034020.KQ). Rahul Jain‘s report highlights the company’s strong visibility in the nuclear industry with improving margins and a record-high backlog, positioning Doosan as a strategic supplier. However, the premium multiples indicate limited room for error in execution, with margins showing steady improvement but bottom-line gains remaining volatile due to non-operating factors. The outlook suggests medium-term growth potential, but the high multiples (~28x EV/EBITDA) imply little tolerance for missteps.

On the other hand, Douglas Kim‘s analysis focuses on Doosan Enerbility‘s subsidiary, Doosan Skoda Power, which is set to complete an IPO on the Prague Stock Exchange aiming to raise up to 2.53 billion crowns. Post IPO, Doosan Power System plans to retain 67% ownership of Doosan Skoda Power, while Doosan Enerbility holds a 100% stake in Doosan Power Systems. The valuation metrics presented in the report, including a potential P/E ratio of 17.5x based on projected net profit, provide a bullish perspective on the company’s future growth prospects.

A look at Doosan Enerbility Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Doosan Enerbility, a company specializing in manufacturing and distributing construction machines, has been assigned Smart Scores across various key factors. While the company scores higher in factors like Momentum, indicating strong market traction, its Value and Dividend scores are comparatively lower. With a Growth score of 3 and Resilience score of 3, Doosan Enerbility shows potential for future expansion and the ability to withstand market challenges.

Despite facing challenges in Value and Dividend areas, Doosan Enerbility‘s strong Momentum score of 5 suggests a promising outlook in terms of market performance. The company’s focus on energy solutions for thermal power, nuclear power, and renewable energy positions it well for long-term growth and resilience in a rapidly evolving industry landscape. Investors may find value in monitoring how Doosan Enerbility leverages its strengths in growth and resilience to capitalize on market opportunities.

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