Original-Research: q.beyond AG (von NuWays AG): BUY
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Original-Research: q.beyond AG - from NuWays AG
31.07.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to q.beyond AG
Company Name: q.beyond AG
ISIN: DE0005137004
Reason for the research: Update
Recommendation: BUY
from: 31.07.2024
Target price: EUR 1.10
Last rating change:
Analyst: Philipp Sennewald
Q2 set to confirm strong first quarter improvements
Topic: q.beyond will report Q2/H1 figures on August 12th . We expect a
slight sequential improvement compared to the already strong first quarter.
Q2 sales are seen to increase 2.1% yoy to EUR 47.4m, which should again be
driven by the Managed Service segment (eNuW: EUR 33.2m). On the other hand, we
expect sales from the Consulting segment to slightly decline qoq to EUR 14.1m
(eNuW), due to the continuous reduction in low-margin project sales. As we
expect a slightly lower utilization in Q2 on the other hand, we hence expect
the gross margin to remain stable at 8.5%. Mind you, that management is
targeting to significantly increase the Consulting margin in the mid-term,
driven by an increased utilization as well as a higher near- and off-shoring
ratio (target: 20%, eNuW: 13% at H1 '24). As the Managed Service margin
should also remain stable, we expect the company to report a gross profit of
EUR 8.3m for Q2, implying a 17.6% margin.
On this basis, Q2 EBITDA looks set to come in at EUR 2.1m (Q1: EUR 2.0m),
implying a 4.3% margin as well as a 98% yoy improvement. Besides the already
increased near- and off-shoring ratio, the strong yoy improvements should
have been driven by continued implementation of the One q.beyond strategy
allowing for cost reductions in sales & marketing as well as G&A.
With this, management should confirm the FY guidance of EUR 192-198m in sales
(eNuW: EUR 194m), EUR 8-10m EBITDA (eNuW: EUR 9.7m) and a positive FCF (eNuW: EUR
6.0m). While our EBITDA forecast might look ambitious at first glance after
H1 (eNuW: EUR 4.1m EBITDA), it should be justified by ongoing efficiency gains
throughout the second half of the year.
Overall, the release is seen to fully support the company's transformation
according to its Strategy 2025, where management is targeting an EBITDA
margin of 7-8% (eNuW: 7.1%) as well as a sustainable positive net income.
Valuation continues to look undemanding, as shares are trading at only 7.1x
EV/EBITDA '24e (4.1x '25e). Hence, the stock remains a BUY with an unchanged
PT of EUR 1.10 based on DCF.
You can download the research here: http://www.more-ir.de/d/30329.pdf
For additional information visit our website: www.nuways-ag.com/research
Contact for questions:
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
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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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1957547 31.07.2024 CET/CEST
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