Original-Research: 123fahrschule SE (von NuWays AG): BUY

Classification of NuWays AG to 123fahrschule SE

Company Name:	123fahrschule SE
ISIN:	DE000A2P4HL9
Reason for the research:	Update
Recommendation:	BUY
from:	26.03.2025
Target price:	EUR 7.90
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Final FY EBITDA even ahead of prelims; Chg.

Topic: 123f released a strong set of FY24 results, where sales were slightly lower but EBITDA ahead of the preliminary figures published in January. In detail:

FY24 sales came in at € 22.5m (FY24p: € 22.8m), implying a 9.2% improvement yoy. Sales were again driven by the Private Customers segment, were top-line improved by 11.1% yoy to € 17.3m caused by both price and volume effects. On the other hand, the Driving Instructor Training segment also saw a 9.5% increase in sales to € 3.0m, while the Professional Driver Segment however declined by 17.5% yoy to € 1.9m. The initial contribution from the Simulator segment amounted to € 0.3m sales. Not considering the simulator business, sales growth stood at 7.7%. Mind you, that during the first months of the year, 123f received a significantly increased demand für simulators, especially in the truck segment, leading to orders of already € 1m. For FY25e, we thus estimate a strong increase to € 2.5m sales.

FY24 EBITDA turned positive for the first time, coming in at € 0.5m (FY24p: € 0.4m), implying a 2.4% margin. In our view, this is clearly displaying the ongoing operational improvements as well as scale effects starting to kick in. The clear highlight of the release however, was the operating cash flow, which came in at € 1.3m (FY23: € 0.4m), underpinning 123f’s cash generation ability.

Overall, the results fully underpin our positive view on the company. Going forward, 123f is seen to substantially benefit from the upcoming regulation changes (e.g. re-introduction of online theory & inclusion of simulators into driving education). Besides this, the proceeds from the recent capital measures are seen to also be used to expand the branch network. In fact, management aims to increase to 70 branches until YE25 (57 as of FY24).

Against this backdrop, the company’s guidance of € 27-29m sales looks well in reach (eNuW new: € 28.7m). So does the EBITDA guidance of € 1.5-2.5m (eNuW new: € 2.3m), especially given the strong simulator business, which is characterized by higher margins.

In light of this, the current valuation continues to appear undemanding given an FY25e EV/EBITDA of 7.1x (FY26e: 3.1x). We hence reiterate BUY with an increased PT of € 7.90 (old: € 7.20) based on DCF.

You can download the research here: http://www.more-ir.de/d/32058.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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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