Original-Research: Rubean AG - from NuWays AG
07.11.2024 / 09:05 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.
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Classification of NuWays AG to Rubean AG
Company Name: Rubean AG
ISIN: DE0005120802
Reason for the research: Update
Recommendation: Buy
from: 07.11.2024
Target price: EUR 8.50
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow
Q3 figures in line with estimates // Roll-out in full swing
Topic: Rubean published an interim statement with details on sales and personnel expenses that both developed as expected. In detail:
9M sales grew by 117% yoy to EUR 1.3m, in line with our estimates of EUR 1.4m, mainly driven by the further roll-out of SoftPOS that continues to materialize. Especially the cooperation with Europeans largest shoe reseller Deichmann contributed strongly to the Q3 results.
EBITDA should have improved to EUR -1.9m (eNuW) thanks to increased sales strict, cost discipline, i.e. visible in reduced 9M personnel expenses of EUR 2.1m (-6% yoy). Material expenses as well as other operating expenses should have remained stable yoy (eNuW).
Overall, Rubean is seen well on track: With >50k terminals live in Germany and Spain, Rubean is the market leader in both countries. In those countries, but also abroad, Rubean is now serving 1) logistic companies (CoD - Cash on Delivery) such as Correos, GLS, dpd and SEUR, 2) retailers such as REWE, Deichmann and snabble, 3) hospitality companies such as CTS eventim, Gewinnblick, Ordermann and Waldbühne Berlin as well as 4) banks and acquirers such as Sparkasse, BBVA, Global Payments and emerchantpay. As recent customer wins (i.e. Deichmann) just start to materialize, we expect a strong sales ramp-up going forward, even without new customer wins that we consider as very likely. Planned sales of c. EUR 1m in Q4 are in reach, in our view. With that Rubean would reach its sales guidance of EUR 2.2-2.5m (135% yoy at midpoint) in line with our estimates.
Strong Pipeline of more well-known potential customers. As Rubean is currently in negotiations with potential customers in dozens of countries not only in Europe, but also in LATAM & US, we expect further major customer wins within the next weeks and months, additionally carrying sales growth beyond 2024. In light of the rapidly growing market for mobile payment acceptance systems we further expect Rubean to achieve profitability within FY25 and consider management's mid-term vision of EUR 10+m in sales and 40+% EBIT-margin by FY27 as reasonable.
BUY with a unchanged PT of EUR 8.50, based on our DCF.
You can download the research here: http://www.more-ir.de/d/31209.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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