Original-Research: Multitude SE - from NuWays AG
09.04.2025 / 09:00 CET/CEST
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Classification of NuWays AG to Multitude SE
Company Name: Multitude SE
ISIN: CH1398992755
Reason for the research: Update
Recommendation: BUY
from: 09.04.2025
Target price: EUR 12.00
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow
Strong FY24: Delivered as promised and more to come; chg
Last week, Multitude reported a particularly strong set of Q4 figures and confirmed its net income guidance for FY25 and FY26. In detail:
Sales came in at EUR 69.8m, up 7% qoq and 14% yoy, in line with our estimates of EUR 70m (eNuW), driven by the strong growth of the net loan book (NAR) to EUR 763m (+20% yoy; including c. EUR 112m debt investments attributable to wholesale banking). Importantly, all segments contributed significant yoy NAR and sales growth over the year, resulting in FY group sales of EUR 264m (+14% yoy vs eNuW: 265m).
EBIT increased by 8% qoq to EUR 20.4m (+29% yoy), significantly above our estimates of EUR 18.6m (eNuW). With 68m for the FY, the company achieved its FY24 guidance of EUR 67.5m (vs eNuW: EUR 65.7m). The solid bottom line is due to top-line growth as well as stable OPEX thanks to efficiency measures (marketing, personnel) and resulting scale effects. Driven by NAR expansion, higher average reference rates and the issued perpetual bond, financial costs increased to EUR 11.6m (vs eNuW: EUR 12.2m), resulting in an EBT of EUR 8.8m (vs eNuW: EUR 6.5m) in Q4, which translates into EUR 23.3m in FY24 (vs eNuW: EUR 20.8m).
On the back of this strong set of numbers, management the confirmed its net income guidance of EUR 23m for FY25 and EUR 30m for FY26 (vs eNuW: EUR 23.5m in FY25 and EUR 30m in FY26) expecting further top.line growth and scale effects. In our view, the guidance looks ambitious, but not out of range given 1) the significantly increased loan book that should fully materialize within FY25, 2) the strong growth momentum of CapitalBox as well as the huge potential in the wholesale banking that have just started to pick-up. That paired with the ongoing stable performance "cashcow" of the Group (ferratum) and tight cost control that the company already showed in FY24 give us additional confidence. Mind you that the company has achieved its guidance for last three years.
As the stock is still trading at 4.3x PEŽ25, the growing, highly profitable, resilient and dividend paying (EUR 0.44/share; 8.5% dividend yield) company to look undebatable cheap.
Consequently, Multitude remained a NuWays Alpha pick and we reiterate BUY with an unchanged PT of EUR 12, based on our residual income model.
You can download the research here: http://www.more-ir.de/d/32212.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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2113630 09.04.2025 CET/CEST
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