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Original-Research: INDUS Holding AG (von NuWays AG): BUY

um 09:01 Uhr


Original-Research: INDUS Holding AG - from NuWays AG

Classification of NuWays AG to INDUS Holding AG

Company Name: INDUS Holding AG
ISIN: DE0006200108

Reason for the research: Update
Recommendation: BUY
from: 22.02.2024
Target price: 36.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Christian Sandherr

Solid FY23 prelims // focus on strong FCF & share buyback; chg.

Topic: While prelim. FY23 sales and EBIT came in largely as expected, the
strong FCF generation of EUR 190m is well above expectations. On top, INDUS
announced a 4.1% share buyback at EUR 23.

Preliminary FY23 sales remained stable yoy at EUR 1.80bn (eNuW: EUR 1.82bn),
despite unfavourable economic conditions in the construction industry; Q4
sales -5.0% yoy to EUR 436m. Thanks to a strong Engineering Segment, FY23
operating EBIT came in at EUR 150m (eNuW: EUR 152m), implying a 8.3% margin, up
0.9pp yoy and above the guidance range of 7-8%; Q4 EBIT of EUR 32.7m, a 7.5%

The Engineering segment delivered slight revenue growth and noticeable
growth in earnings for FY23e. Sales in the Infrastructure segment were
flattish yoy with a slightly lower EBIT as the slowdown in the construction
sector impacted several portfolio companies, particularly in H1. Revenues
in the Materials segment decreased modestly but with a significantly higher
EBIT due to price increases.

Most importantly, Free cashflow came in above EUR 190m materially improving
yoy (2022: EUR 102m), exceeding the guidance of EUR 100m and eNuW of EUR 89m,
caused by further noticeable working capital normalizations. As a result,
net debt decreased by EUR 87.3m to EUR 506m, strengthened the equity ratio to
37.3% (FY22: 36.8%). Further, the strong cashflow generation gives INDUS
with additional financial flexibility regarding acquisitions and dividend

Thanks to the INDUS announced a share buyback for up to 1.1m shares at a
price of EUR 23 during the period from February 22nd, 2024 to March 1st,
2024. Thus, the volume of the buyback amounts up to EUR 25.3m in aggregate,
leading to approximately 4.09% of the company's registered share capital.
This underlines not only the strong cash generation of the company but also
the current undervaluation.

FY24e guidance in line with expectations. Management anticipates revenues
in the range of EUR 1.85-1.95bn (eNuW: EUR 1.88bn) with an EBIT between EUR
145-165m in FY24e (eNuW: EUR 150m). Despite of the continuously challenging
end markets and general macroeconomic conditions, we regard the guidance as
doable due to price increases and slight pickup of demand across several
portfolio companies.

Trading at only 4.1x EV/EBITDA 2023e, 59% below its historical average,
INDUS remains attractively priced. We reiterate our BUY rating with an
increased PT of EUR 36 (old: EUR 34) based on FCFY 2024e.

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Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
Kontakt für Rückfragen
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.

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The result of this research does not constitute investment advice
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Indus Holding AG

WKN 620010 ISIN DE0006200108