Original-Research: NFON AG - from NuWays AG 28.02.2025 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.
28.02.2025 - 09:01:23Original-Research: NFON AG (von NuWays AG): BUY
Original-Research: NFON AG - from NuWays AG
28.02.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
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 NFON AG
Company Name: NFON AG
ISIN: DE000A0N4N52
Reason for the research: Update
Recommendation: BUY
from: 28.02.2025
Target price: EUR 12.30
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald
Strong FY24p highlighted by superb FCF; chg.
Topic: NFON released preliminary FY24 figures, showing a stronger than
expected top- and bottom-line as well as an extraordinarily strong FCF. In
detail:
FY24 sales increased 6.1% yoy to EUR 87.3m (eNuW: EUR 86.1m; eCons: EUR 86.5m)
driven by moderate seat growth (+1.4% to 665k) as well as premium solutions.
Notably, non-recurring sales were up 95% yoy in Q4, indicating a strong
effect from botarios project business and also a strong growth in Q4 as well
as FY24 by the newly acquired subsidiary (consolidated since 09/24).
According to CEO Heider, the company exceeded expectations and thus made a
strong contribution to the FY result. Importantly, recurring revenues grew
5.1% yoy to EUR 81.1m (in line with eNuW), implying a recurring revenue ratio
of 92.9%.
FY24 adj. EBITDA improved disproportionately by 48% yoy to EUR 12.3m (eNuW: EUR
12.0m; eCons: EUR 11.3m), implying a margin of 14.1% (+3.9pp yoy). The
improved profitability was mainly driven by an improved product mix (i.e.
premium solutions), the imposed efficiency measures as well as the
margin-accretive
acquisition of botario (c. 30% EBITDA margin). Reported EBITDA was in line
with our estimates at EUR 10.8m.
The clear highlight of the release however was the FCF, which improved
strongly from EUR 1.0m in FY23 to EUR 6.5m in FY24 and was substantially ahead
of our estimate (eNuW: EUR 3.8m). The strong increase was mainly driven by the
improved profitabilty as well as lower CapEx (eNuW).
New guidance. For FY25e, management targets sales to grow by 8-10% (eNuW
new: +10.4%) and an adj. EBITDA of EUR 13.5-15.5m (eNuW new: EUR 15.8m). In our
view, both should be well achievable even at the upper end of the range.
This should be driven by (1) the continuous efficiency gains, (2) a further
improvin
product mix as well as (3) the introduction of new solutions like NFON
Intelligent Assistent or voice mail transcription.
Despite the recent share price jump (+45% YTD), this is still not adequately
reflected in the share price, in our view, given a valuation of 7.3x
EV/EBITDA FY25e (5.5x FY26e).
We hence reiterate BUY with an increased EUR 12.30 PT (old: EUR 11.70) based on
DCF. The stock remains part of our NuWays Alpha List.
You can download the research here: http://www.more-ir.de/d/31869.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
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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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2093177 28.02.2025 CET/CEST
