Corporatings

❓ How to value a highly volatile business? 📉 For instance, this company (JacquetMetals) has long been valued at nearly its cash position. This is where the real work of an analyst begins: understanding the "key drivers" that influence activity, profitability, and, ultimately, the stock price. Even if the company has posted two strong years of growth (2021 : +44%; 2022 : +36%), when digging deeper we can highlight the fact that volume effect and price effect are the main drivers of sales and profitability. In this case, volatile market conditions are clearly driving the company’s activity. 2021 and 2022 growth were mainly related to COVID value chain disruptions and raw materials prices increase. This high level of uncertainty makes it challenging to project future performance and accurately value the company. 🚀 However, given the stock price trend, the market strongly believes that German investments will drive orders higher, amplifying both volume and price effects. The share buyback program likely plays a role as well. 📉 For the analyst community : how to value a company with such volatility in sales and profitability ? 🔍 For the XBRL Europe aisbl community: This is why access to granular data is crucial. Company-specific data provides deeper insights into business performance—far beyond purely comparable metrics. You should definitely add focus on that type of data. How can you help in providing access to such data ? #FinancialAnalysis #XBRL #AI #Data

📈 This company has been performing as well as NVIDIA over the past five years. It's Rheinmetall. 🚀 Europe can also have stock market champions! And just because it's in the defense sector doesn't mean we shouldn't talk about it! Quarter after quarter, this company consistently increases sales while improving its operating margins. That's the key to managing growth! The war in Ukraine has already boosted the defense sector, and now, with the United States’ intention to withdraw from the conflict, things could accelerate even further. Monitoring investments requires time and discipline to centralize all the critical data. Access to raw, granular, and traceable data is a top priority for all analysts. With Q4 and FY 2024 already in the spreadsheet it's easier to focus on analysis and ask the right questions during the 2pm conf call. Let's see how market react at the opening. #FinancialAnalysis #AI #Data

🔎 Imagine you're reading the financial report of a company, looking for a value you need in order to invest in that company. Because this is their first year measuring a certain metric, they were only able to collect 20% of it, and they know that this 20% is not representative. The company transparently discloses that fact. Now, what value do you expect the company to disclose? A) The value they get from their 20% of data B) The value adjusted for the best estimate of the bias introduced by the partial measurements 💬 Tell me your approach in the comments. As for me, I am without any doubt on team B. I believe only leaving out there the biased value is misleading, especially when that value is to be collected by fund managers to form the basis of sustainable investment decisions. This is the "faithful representation" pillar of quality in ESRS 1. In their ESRS statements, Rockwool (first example) state that they measure their annual remuneration ratio by only taking white-collar employees (they call them 'indirect' employees) into account, and leaves it at that. One can clearly expect a significant difference between the remuneration of white-collar and blue-collar employees, and the published ratio is probably quite far from the actual value. The second example is from Carlsberg, where a similar issue was encountered with the median calculation, but the company still attempted to estimated the bias, and published a best estimate. I don't want to be too harsh on Rockwool since they transparently disclose the accounting policy, but annual remuneration ratio is one of the SFDR metrics. I am worried that an incorrect raw value may end up being used in sustainable investment decisions. #CSRD #ESRS #Social #Remuneration #SFDR

The European Sustainability Reporting Standards are a key piece of bringing good governance to sustainability in Europe, first and foremost through standardisation and harmonisation. Indeed, a sustainability metric of a financial product can only be reliably calculated if the underlying companies report that metric consistently. Non-recycled waste is an example of an indicator that stems from a topical EU legislation, and is reused with the same definition in reporting requirements from both companies and financial products. EFRAG published clear definitions in the standards, as well as several further clarifications in the implementation guidance. But how was it applied? Have a look at a few examples with us. #ESRS #CSRD #CircularEconomy #Waste

📢 European Taxonomy : access the reports in just a few clicks ! The European Taxonomy is evolving, and this year marks a significant milestone: companies must now disclose their alignment not only for climate change mitigation and adaptation but also for four new environmental objectives: 🌊 Sustainable use of water and marine resources 🔄 Transition to a circular economy 🚫 Pollution prevention and control 🌱 Protection and restoration of biodiversity and ecosystems 🔎 In the video below, I show you how to quickly analyze companies in a specific sector within the STOXX 600, using three key features : ▫️ Visualization of tables directly in the app ▫️ Direct link to the data source in the report ▫️ Export to Excel for further analysis 🚀 In the video, none of the 13 companies have yet published their 2024 report. The data in our app will be available the day after publication: stay ready! #EuropeanTaxonomy #Article8 #ESG #Sustainability

🚀 2024 detailed data already available thanks to the combination of digital reporting and AI, a month before the 2024 digital report ! 🤖 Artificial intelligence is often seen as revolutionary in the collection and analysis of financial and non-financial data. That’s not true! AI requires training, and this is where digital reporting becomes an essential and valuable source of information. The real winning combination is the synergy between AI and digital reporting. 🔍 For analysts, it’s a massive time saver: investors can now access granular and traceable data, even before it’s fully tagged in the URD. Just minutes after a financial report is published, the data is digitized and available. 🏭 For issuers, this significantly reduce the regulatory burden : All you need is detailed tagging once a year to easily find same data in an annual or semi-annual financial report. In this video, we show you how we digitize data on the fly that isn't yet available in electronic format. A huge thank you to Edenred for positioning itself as a leader in this field, providing data of unparalleled accuracy and granularity! Check the comments for a link to access the app. #Digitalisation #AI #Reporting #Data #Innovation #ESMA #XBRL

📝 The first Finnish ESRS-compliant reports are available for exploration for free in our application (https://lnkd.in/evmQVthB). Two of them were published yesterday. Among which is one that has fewer than 1000 employees, an interesting case as such if you want to see how the size of a company may affect their statements. ...And our second case of using GDPR as a reason of non-disclosure, this time for S1-12 - Persons with disabilities. #CSRD #ESRS #Finland #Social #Disability

🔍 In one of the #CSRD -compliant reports we collected, I came across the following mention. The company seems to argue that it should be generally impossible for companies with activities within the EU to disclose the data required by ESRS S1-14 because of GDPR. 🤔 What do you all think of this? Is there any legitimacy to this claim? What about other companies who already reported this number, are they in violation of GDPR? I do not quite understand why GDPR would prevent this from being calculated, given that this can be done on an aggregated, anonymized fashion, and given that there is no requirement to specify which type of ill health issues happened, therefore no possibility to trace this to any individuals. #ESRS #Social #Health

🔢 Quite a few interrogations regarding the amount of work that digital tagging of sustainability statements would represent have been around lately. 🎲 It seems than more often that not, they have been answered with estimates plucked out of thin air, some fearmongers even bringing up unrealistic, alarming numbers such as "3000 tags"! Let us be honest: proper counting could only be achieved after seeing what reports actually disclosed. As it turns out, and as expected, a lot of disclosure requirement seem to fall into the "granular omission" clause in practice. Based on the couple dozen sustainability statements already published, we drew an estimate of the tag count to be expected, through the simple method of counting, on each page of the released sustainability statements, numbers or text that would fit as individual tags. When the data was broken down, each value was counted as a separate tag. In addition to many granular disclosures being omitted, a lot of the published reports contain many details that either do not correspond to precise requirements, or for which EFRAG planned for granular non-comparability by requiring tagging of the whole 'block' (table or section) instead of every figure. This makes it so that in the end, only a minor fraction of numbers in the report would be required to be tagged invidually. The published reports already cover quite a varied sample of industries (incl insurance and banking), with a median *total* amount of tags slightly smaller than 480. As a reminder, ESMA's current proposal is to have this degree of tagging by 2031, within a gradual phase-in. We expect the most detailed 10% of reports to be in the vicinity of 900-1000 tags once fully tagged, and the least detailed to be in the vicinity of 250. You can find the corresponding box plot of our counting below, together with the current count of accounting, as well as, in red, the median* amount for companies reporting in IFRS in the world's most efficient market (median is about 1580 tags; average is about 1720). ESMA's proposal for accounting data should bring the amount of accounting tags closer to the red line by 2031. #CSRD #ESRS #IFRS #Digitalisation #Omnibus

💡Did you know the already published ESRS-compliant reports can be found and browsed easily thanks to the EU electronic frameworks already in place ? I have seen a lot of comments on efforts to gather lists of early publications, things like crowdsourced lists. But this is a bit of a waste! The Transparency Directive in the EU already makes it so that the listed and access to published reports can be completely automated. The detailed structured mark-up will come in a few years, but the reports themselves as a whole are already digitalised and indexed in national repositories. You can access the list and browse the reports very easily with software that uses this European infrastructure, such as our very own Lens data platform. Leave a comment below or contact me directly if you are interested in seeing more or getting that capability for yourself! #ESRS #CSRD #Transparency