Interpump: A Solid Business But Still Not Cheap Enough After Price Drop

2025-03-07 10:30:00 ET

Summary

• Interpump faced significant headwinds in 2024, with revenue dropping 7.3% and EBIT decreasing over 20% due to increased costs.
• Despite challenges, Interpump's balance sheet remains robust with a net debt to EBITDA ratio of 0.8, supporting continued non-organic growth.
• The 2025 outlook is cautious, with expected flat EPS and potential trading opportunities if the market reacts to weak H1 results.
• Currently rating Interpump a 'hold' as it trades at 17-18 times earnings; potential better entry points may arise with H1 2025 weakness.

Introduction

Interpump ( OTCPK:IPGLF ) is one of the world's leading manufacturers of high pressure pumps. Its activities are focusing on two divisions: water-jetting and hydraulics. The latter produces hydraulic components (cylinders, valves, pipes, etc.) while the water-jetting division contains the original pump business (with high-power pumps with up to 2,000 horsepower) as well as the more recent diversification into special pumps and pumps, valves and tanks for food and pharmaceutical industries. The company's share price recently nosedived due to a weak outlook for (the first part of) 2025, and I wanted to check if this perhaps created an opportunity to initiate a long position....

Read the full article on Seeking Alpha

For further details see: