BUY
|
Original-Research: NFON AG - from NuWays AG
Classification of NuWays AG to NFON AG
NFON remains an Alpha pick after strong operations in FY24e Topic: After a strong operating performance in FY24e, NFON looks set to continuously expand margins at an increased top-line growth throughout FY25e. Sales in FY25e are expected to increase by 12.7% to € 97.1m (eNuW; eCons: € 95.2m) based on an increased cloud adoption and hence further key customer wins in the company’s key markets as well as the initial full FY contribution of botario (acquisition closed in 09/24; eNuW: € 3.1m sales in FY25e). Hereby, the share of recurring revenues looks set to further increase to 94.6% (eNuW FY24e: 94.2%), given the decreasing importance of hardware sales also in connection with new customer wins. Moreover, we expect NFON to improve its adj. EBITDA to € 15.7m (eNuW; eCons: € 14m unadj. EBITDA), implying disproportionate growth of 31% and a margin of 16.2%. This should come on the back of an improved sales mix, meaning less hardware sales as well as an increased ARPU following a higher share of premium solutions sold, as well as cost saving measures imposed during FY23/24, allowing for reduced personnel cost and marketing ratios. Also, the botario acquisition (23.5% EBITDA margin in FY24e) will also be a main driver of the margin expansion. Against this backdrop, FCF is seen to improve to € 5.5m (eNuW: € 3.8m in FY24e). Speaking of botario, we anticipate the acquisition to not only be margin accretive but significantly enhance NFON’s capabilities regarding AI and process automation, thus marking a substantial competitive edge. In our view, this should help the company gain additional market share in the still highly fragmented market for integrated business communication going forward. Overall, the above is seen to allow for notably improving returns (eNuW: ROIC 10% by FY25e) as well as cash generation, thus driving shareholder value. That said, current valuation remains highly attractive given that the stock is trading on a 7.2x trailing EV/adj. EBITDA and a 5.2x EV/adj. EBITDA FY25e. In our view, this is not justified, as it does not at all reflect the significant operating improvements over the past 18 months. We hence reiterate BUY with an unchanged PT of € 11.70, based on DCF, as NFON remains part of our NuWays Alpha List. You can download the research here: http://www.more-ir.de/d/31607.pdf For additional information visit our website: https://www.nuways-ag.com/research-feed 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 ++++++++++ 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. ++++++++++
The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
||||||||||||||||||||
2064081 09.01.2025 CET/CEST
P R O D U C T S U G G E S T I O N S
The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.
The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.
If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.
For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.
1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.