Original-Research: mVISE AG - from NuWays AG
26.03.2025 / 09:02 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS Group.
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Classification of NuWays AG to mVISE AG
Company Name: mVISE AG
ISIN: DE0006204589
Reason for the research: Update
Recommendation: BUY
from: 26.03.2025
Target price: EUR 1.30
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald
FY24 in line as profitabilty strongly increases; chg.
Topic: mVISE released a sound set of FY24 figures, were sales declined as expected but EBITDA increased thanks to the imposed efficiency measures. In detail:
FY24 sales decreased by 33% yoy to EUR 9.3m (eNuW: EUR 9.4m). The reduction in sales was mainly due to the restructuring process and the continued reorganization of the business model. In this context, the company actively reduced the number of employees further. Positively, the gross margin improved by 1pp yoy to 63.9%, implying a gross profit of EUR 6.0m.
Contrary to the top-line development, mVISE was able to improve EBITDA by 2.8% yoy to EUR 1.1m, implying a strong EBITDA margin improvement to 12.1% (+4.3pp yoy). This figures represents the adjusted EBITDA, where the derecognition of the at-equity investment elastic.io is not considered. Taking this into account, reported EBITDA stood at EUR 1.5m. The main reason for the strong profitabilty improvement was again the staff reduction, which becomes visible in significantly reduced personnel expenses (-39% yoy; -2.8pp sales ratio).
In our view, this fully underpins that the change in strategy, which also includes the the discontinuation of low-margin projects in connection with the corresponding personnel measures, is clearly bearing fruit.
FY25 guidance. Next to the release, management put out a new guidance for FY25, targeting an EBITDA of at least EUR 1.3m, thus implying a 15% yoy increase. Yet, this is significantly below our old estimate of EUR 2.1m, which is why we regard the outlook as conservative. On the other hand, sales should continue to decline in FY25e in the context of the ongoing restrucuring, before we will see a top-line expansion again in FY26e.
Despite the rather muted FY25 outlook, the company remains fully on track with its transformation, which should become visible in continuously improving margins and returns.
As this is not fully relfected in the share price in our view (i.e. FY25e EV/EBITDA of 11.3x; FY26e: 8.3x), we reiterate our BUY recommendation with a new PT of EUR 1.30 (old: EUR 1.40) based on DCF.
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2106408 26.03.2025 CET/CEST
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