INDUS Holding AG
ISIN: DE0006200108
WKN: 620010
22 March 2024 09:01AM

Original-Research: INDUS Holding AG (von NuWays AG): Kaufen

INDUS Holding AG · ISIN: DE0006200108 · EQS - Analysts
Country: Germany · Primary market: Germany · EQS NID: 19225

Original-Research: INDUS Holding AG - from NuWays AG

Classification of NuWays AG to INDUS Holding AG

Company Name: INDUS Holding AG
ISIN: DE0006200108

Reason for the research: Update
Recommendation: Kaufen
from: 22.03.2024
Target price: EUR 36.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Christian Sandherr

Strong FCF supports further growth; chg.

Topic: INDUS reported solid FY23 figures especially in light of the currently challenging macro environment. Results are in line with the preliminary numbers and FY23 guidance. Further, INDUS had its capital markets day yesterday in Frankfurt. Here are the key takeaways:

FY23 sales came in at € 1.80bn, roughly unchanged from last year, despite a difficult macro environment. While EBIT increased by 11.9% yoy to € 150m, it is important to note that the impairments of € 19m in FY23 due to higher interest rates were significantly lower compared to the € 43m in FY22. Adjusted EBIT (excl. impairments) stood at € 169m (- 4.3% yoy) resulting in an implied adj. EBIT margin of 9.4% (- 0.4pp yoy). For FY24e we expect no further impairment of goodwill, as interest rates are seen to reached the zenith.

FY23 sales in the Engineering segment increased slightly to € 600m (+ 3.2% yoy; eNuW: € 590m) and adj. EBIT increased 1.5% to € 62m, leading to a solid adj. margin of 10.4% (- 0.1 pp), supported by an improved situation in measurement and control engineering due to an ease of the semiconductor shortage in FY22. Sales in the Infrastructure segment came in at € 582m (eNuW: € 588m), almost at the previous year’s level (- 0.6% yoy). Adj. EBIT came in at € 57m with a margin of 9.8% (-1.1 pp) and declined 11% due to high costs for concrete and sand as well as a strong slowdown in the construction sector. The Materials segment showed slightly lower sales of € 620m (- 2.7% yoy; eNuW: € 641m), as a result of lower sales prices and volumes, while adj. EBIT was roughly
unchanged at € 64m (- 1.1% yoy), with a margin of 10.3% (-0.1 pp).

CMD feedback: Free cashflow in FY23 came in at € 199m and reached a new record high, growing 96% yoy. However, cashflows were supported by a reduction in working capital of € 30m during FY23 (FY22: + € 53m) and a € 15m inflow from the disposal of an office building. Supported by the strong FCF, management intends to spend € 70m for acquisitions during FY24e. The 1.1m recently acquired treasury shares could serve as form of payment and are not included in the € 70m budget. Hence, we expect to see more acquisitions coming in this year, especially in the field of infrastructure networks, automation and energy technologies. Considering the currently low valuations of the German Mittelstand, this is a good opportunity to acquire further niche players to fuel the growth for the coming years.

Attractive dividend yield: Management proposed a dividend of € 1.20 per share (eNuW: € 1.20), making INDUS an attractive dividend stock with a yield of 4.8% based on yesterday’s closing price. Due to the divestment of the loss-making automotive business in FY23 and an ongoing successful operating business, we expect a further dividend rise for the current fiscal year (eNuW: € 1.40). Mind you, INDUS plans to pay out up to 50% of the group’s net income. During the short- to mid-term, management plans to grow EBIT to more than € 200m, which could lead to a dividend of € 1.90 per share (40% payout), a 7.5% yield.

Valuation looks undemanding with shares trading at 4.4x EV/EBITDA 2024e (26% below the 10y historical average) while offering 11% adj. FCF yield. We reiterate BUY with an unchanged PT of € 36 based on FCFY 2024e.

You can download the research here:
http://www.more-ir.de/d/29225.pdf
For additional information visit our website www.nuways-ag.com/research.

Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research. 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 ++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++

-------------------transmitted by EQS Group AG.-------------------

The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.

Boersengefluester.de (BGFL) provides an overview of the key figures on sales, earnings, cash flow and dividends to help you better assess the fundamental development of the respective companies. All information is entered manually in our database - the source is the respective annual reports. All estimates for future figures are provided by BGFL.

The most important financial data at a glance
  2018 2019 2020 2021 2022 2023 2024e
Sales1 1.710,79 1.742,80 1.558,55 1.741,50 1.804,11 1.802,43 1.740,00
EBITDA1,2 218,34 225,71 157,71 220,38 262,43 258,13 250,00
EBITDA-Margin3 12,76 12,95 10,12 12,66 14,55 14,32 14,37
EBIT1,4 134,69 117,90 25,08 115,40 133,67 149,56 119,00
EBIT-Margin5 7,87 6,77 1,61 6,63 7,41 8,30 6,84
Net Profit (Loss)1 71,19 60,07 -26,90 47,56 -51,02 56,11 63,00
Net-Margin6 4,16 3,45 -1,73 2,73 -2,83 3,11 3,62
Cashflow1,7 74,65 147,29 155,19 158,36 116,34 217,66 0,00
Earnings per share8 2,90 2,43 -1,10 1,78 -1,93 2,06 2,35
Dividend per share8 1,50 0,80 0,80 1,05 0,80 1,20 1,20
Quelle: boersengefluester.de and Company information
Explanation

1 in Mio. Euro; 2 EBITDA = Earnings before interest, taxes, depreciation and amortisation; 3 EBITDA in relation to sales; 4 EBIT = Earnings before interest and taxes; 5 EBIT in relation to sales; 6 Net profit (-loss) in relation to sales; 7 Cashflow from operations; 8 in Euro; Source: boersengefluester.de

Auditor: PricewaterhouseCoopers

All relevant valuation ratios, dates and other investor information on your share at a glance. Good to know: All data comes from boersengefluester.de and is updated daily. This means you are always up to date. You can get brief explanations of the key figures by moving the cursor or mouse over the relevant field.

INVESTOR-INFORMATION
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Indus Holding
WKN ISIN Legal Type Marketcap IPO Recommendation Plus Code
620010 DE0006200108 AG 528,77 Mio € 13.09.1995 Halten 9F29X572+RC
* * *
PE 2025e PE 10Y-Ø BGFL-Ratio Shiller-PE PB PCF KUV
7,59 14,56 0,52 9,92 0,77 2,43 0,29
Dividends
Dividend '2022
in €
Dividend '2023
in €
Dividend '2024e
in €
Div.-Yield '2024e
in %
0,80 1,20 1,20 6,10%
Financial calendar
Annual General Meeting Q1-figures Q2-figures Q3-figures Annual press conference
27.05.2025 14.05.2025 12.08.2025 12.11.2024 24.03.2025
Performance
Distance 60-days-line Distance 200-days-line Performance YtD Performance 52 weeks IPO
Last Price (EoD)
-2,67%
19,66 €
ATH 66,20 €
-7,17% -15,88% -12,04% -10,43% +32,60%

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