Buy
|
Original-Research: 123fahrschule SE - from NuWays AG
Classification of NuWays AG to 123fahrschule SE
Improved profitability and strong CFO in Q3 123f published a strong set of preliminary Q3 results, showing continuous top-line growth as well as improved profitability. Q3 preliminary sales increased by 11% to € 5.7m (eNuW: € 5.6m), which should have been predominantly driven by the Private Customer segment (eNuW: € 4.5m). Moreover, the Driving Instructor Training segment should have continued to grow strongly to € 0.7m (eNuW: +50% yoy). On the other hand, the Professional Driver Education segment is seen to have declined again in Q3 (eNuW: € 0.5m; -18% yoy). Against this backdrop, Q3 adj. EBITDA significantly increased yoy to € 0.2m (flat in Q3 ’23), clearly demonstrating efficiency gains as well as operating leverage. Mind you, 123f imposed some accounting changes in the beginning of the year concerning build up of provisions, which is now made throughout the year instead of only once in December. Unadjusted EBITDA came in at € 0.1m. The clear highlight of the release, however, was the improved operating cash flow, which came in at € 0.6m, showing a further sequential improvement compared to the first two quarters (H1 CFO: € 0.9m). With a CFO in 9M ’24 of € 1.5m, 123f already achieved 4x the amount of the entire FY ’23 (€ 0.4m). Yet, FCF should still have been slightly negative following the ongoing investments into the company’s proprietary software solutions. Strategy 2027. In early November, management passed the new Strategy 2027 in reaction to the announced legislative changes, which are likely coming into effect in Q1 2026. Next to the obvious scale advantages of the return of online theory, 123f is going to focus on the practical training, which is going to receive a “digitalization boost” going forward driven by the comprehensive roll-out and further software development of the “digital driving instructor” in the simulator. According to CEO Polenske, this will enable 123f to reduce the price of a driver’s license by up to € 1,000, which should translate into massive market share gains in the company’s target regions. Thanks to the higher margin digital solutions and an expected reduction in vehicles and instructors, this should further allow for improving profitability. Regarding the necessary financing of these projects as well as the roll-out of simulators, management is currently considering raising further capital, i.e. in the way of a convertible with a volume of € 4-5m. Reiterate BUY with an unchanged PT of € 7.20 based on DCF. You can download the research here: http://www.more-ir.de/d/31213.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 ++++++++++ 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. |
||||||||||||||||||||
2024421 07.11.2024 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.