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Original-Research: mVISE AG - from NuWays AG
22.11.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
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.
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Classification of NuWays AG to mVISE AG
Company Name: mVISE AG
ISIN: DE0006204589
Reason for the research: Initiation
Recommendation: Buy
from: 22.11.2024
Target price: EUR 1.40
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald
Transformation fully on track - Initiate with BUY
Following the appointment of Ralf Thomas as CEO in 2022, mVISE performed a
remarkable transformation, in which the company restructured into a
manufactory with a focus on software development while significantly
reducing workforce to improve utilization and thus efficiency. Here,
management has implemented a one-stop-shop experience for customers,
catering the entire value chain from the initial development until the
operation of the software. On top of this, mVISE acquired Workforce
Management (WFM) expert opcyc GmbH in late 2023, a company with a staggering
60% EBITDA margin and 90+% recurring revenue ratio.
The general beauty of the transformation lies in the positive impact on
visibility and profitability (EBITDA margin +20.7pp from 2023'-27) as both
the development business as well as the WFM software are yielding scalable
and recurring revenues (70% by FY '27e) thanks to long-term contracts with
customers.
In our view, the secret of success going forward lies in the company's
holistic development approach, offering numerous advantages for customers as
it focusses on the entire software lifecycle, allowing for a more efficient,
user-oriented and flexible process, ultimately improving quality and thus
driving customers value. In addition, mVISE has a proven sector expertise,
especially in the telecommunication and industrial segment, which marks a
competitive edge compared to larger, more sector-agnostic peers, in our
view.
Going forward, mVISE is further seen to benefit from several structural
growth trends regarding both software development and WFM. Here, especially
the ongoing digitalization of German SMEs as well as the increasing
cloudification should enhance the prospects of custom software developers
like mVISE.Moreover, the intensifying labour shortage as well as flexible
work models are seen to drive demand for WFM solutions. Thanks to probably
the most configurable tool in the market, opcyc should be able to even
compete with larger peers, in our view.
Along with several growth opportunities and operating a highly scalable
business model, the stock looks undervalued trading at 5.8x EV/EBITDA 2024e
(4.1x '26e). We hence initiate with BUY and a EUR 1.40 PT
based on DCF.
You can download the research here: http://www.more-ir.de/d/31419.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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2036139 22.11.2024 CET/CEST
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