Original-Research: Multitude SE (von NuWays AG)
Original-Research: Multitude SE - from NuWays AG
Classification of NuWays AG to Multitude SE
Company Name: Multitude SE
ISIN: FI4000106299
Reason for the research: Update
Recommendation: Kaufen
from: 17.05.2024
Target price: EUR 12.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow
Solid Q1 figures // FY24 guidance approved; chg
Yesterday, Multitude reported Q1´24 figures above expectations, but still
with room for sequential improvements until YE. In detail:
Sales of € 64.2m (10% yoy, 1% qoq), was above the anticipated € 59.0m,
mainly driven by the stronger growth of the net loan book (NAR) to € 658m
(including c. € 589 loan to customer and c. € 68m attributable to warehouse
lending; vs. € 638m in Q4´23). With € 54.1m ferratum contributed most (84%
of sales, 13% yoy, 1% qoq), followed by CapitalBox (12% of sales, 17% yoy,
17% qoq) and Wholesale banking with 4% of total sales (€ 2.3m; 190% yoy,
21% qoq).
EBIT came in at € 11.6m (32% yoy, -15% qoq), beating our expectation by 13%
(eNuW: € 10.3m), thanks to the stronger topline and lower S&M and personnel
as well as other operating expenses, all compensating for impairments on
loans that were up significantly (€ 28.3m, 35% yoy, 6% qoq) vs eNuW: €
23.6m). Reasons for the lifted impairments were the ramped-up loan book on
the one hand, but also credit losses in certain CapitalBox markets. As
interested expenses also expanded by 48% to € 8.7m (vs eNuW: € 7.7m), EBT
of mere € 2.8m (-3% yoy, -30% qoq), left room for improvements.
Overall, Multitude reported a solid set of Q1 figures. While the sales
growth trajectory is fully intact marking a new record level, the
development of impairment is weighing on profitability. As management is
working on this issue with the highest priority, we see good chances for
improvements within the next quarters. That, paired with further topline
growth following the growth of the loan book in Q1, as well as the ongoing
tight cost control resulting in stable other OPEX should unlock significant
scale effects from Q2 onwards, allowing meaningful EBIT growth. Still, for
now, we conservatively expect € 61.4m EBIT in FY24, which is below the
approved management guidance of € 67.5m.
As the stock is trading at a 4.3x PE´25, the growing, highly profitable,
resilient and dividend paying company looks undebatable cheap.
BUY with an unchanged PT of € 12 PT, based on our residual income model.
Mind you that Multitude is one of our NuWays Alpha picks for FY24.
You can download the research here:
http://www.more-ir.de/d/29799.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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The result of this research does not constitute investment advice
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