Classification of
Company
ISIN: DE000A3CSTW4
Reason for the research: Update
Recommendation: BUY
from:
Target price: 22.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst:
FY prelims: Strong H2 & promising outlook / chg. est & PT
Topic:
H2 sales increased by 16% yoy to € 3.4m (eNuW: € 3.1m), which should have been mainly driven by the company’s flagship product samQ (eNuW: 75% of sales), as indicated by the recently published order intake figures. Importantly, the newly launched product visoryQ, a tool that automates ERP decisionmaking processes for SAP products, appears to be already in high demand, accounting for 10% of sales (eNuW). Overall FY ’23 sales came in at € 5.2m (eNuW: € 5.0m), indicating a 11% yoy increase.
H2 EBITDA came in at € 0.9m (eNuW: € 0.3m), implying a 28% margin. The gap to our estimate can be mainly explained by scale related to the better top-line as well as a higher than expected share of license revenues. On this basis, FY ’23 EBITDA turned positive at € 0.4m (eNuW: € -0.2m), an 8.6% margin. Moreover, the company indicated that EBIT might even turn slightly positive (eNuW new: neutral), while FCF should have still been slightly negative with € -0.2m (eNuW new) following continuous investments into the product portfolio.
Promising outlook. Management also put out a guidance for FY ’24, targeting
sales growth of 10-20% yoy (eNuW new: +17%) and an EBITDA margin of 15-20%
(eNuW new: 16%). This should be, among others, driven by the ongoing
S/4HANA transition (mainstream maintenance for old ERP software ends in
2027), of which
Despite the strong share price performance YTD, valuation still looks undemanding with the stock trading on a mere 1.2x EV/Sales and 7.6x EV/EBITDA ‘24e (0.8x/4.0x based on FY25e) carried by the strong underlying mid-term prospects as well as the scalability of the capital light business model.
Reiterate BUY with an upgraded PT of € 22 (old: € 20) based on DCF.
You can download the research here:
http://www.more-ir.de/d/29091.pdf
For additional information visit our website
www.nuways-ag.com/research.
Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
www.nuways-ag.com/research.
Kontakt für Rückfragen
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148
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The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.