NFON AG
ISIN: DE000A0N4N52
WKN: A0N4N5
08 March 2024 09:01AM

Original-Research: NFON AG (von NuWays AG): BUY

NFON AG · ISIN: DE000A0N4N52 · EQS - Analysts
Country: Germany · Primary market: Germany · EQS NID: 19101

Original-Research: NFON AG - from NuWays AG

Classification of NuWays AG to NFON AG

Company Name: NFON AG
ISIN: DE000A0N4N52

Reason for the research: Update
Recommendation: BUY
Target price: EUR 11.70
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Philipp Sennewald

FY ’23 prelims: Another beat on the bottom-line; chg. est. Yesterday, NFON released FY ’23 prelims, which show moderate top-line growth but strong profitability improvements as well as another guidance beat. The FY24 guidance points towards further ARR growth and an improving profitability. In detail:

FY recurring revenues came in at € 77.1m (eNuW: € 76.8m), implying a moderate 4.8% yoy increase at a continuously strong ARR ratio of 93.7% (+2.6pp yoy). This was mainly based on slightly increased seat base of 656k (+3.5% yoy) following further customer wins as well as successful up-selling of premium solutions. Total sales increased by 1.9% yoy to € 82.3m (eNuW: 82.4m).

FY adj. EBITDA increased substantially to € 8.4m (vs € -1.0m in FY ’22), thus coming in ahead of our estimates (€ 8.0m) as well as consensus (€ 7.6m). With this, the company slightly outperformed the already upgraded guidance range of € 7.8-8.3m. Reported EBITDA came in at € 6.8m (eNuW: € 6.7m) vs € -5.3m in FY ’22. The strong improvement in profitability should have been mainly due to an improved gross margin (eNuW: +1.9pp yoy) as well as the effect of the imposed efficiency measures especially in relation to personnel costs (14% staff reduction after 9M) as well as improved marketing efficiency (e.g. channel marketing. Notably, NFON will report positive FCF (€ 1.0m vs eNuW: € -0.2m) for the first time since going public, prooving that the cash burn of previous years is a thing of the past now.

FY24 guidance. With the preliminary results, management also put out a guidance for FY ’24, targeting ARR growth in the mid- to high-single-digit-% range (eNuW new: 7.3%), an ARR ratio of >90% (eNuW: 94%) as well as an adjusted EBITDA of € 10-12m (eNuW: € 10.7m), implying a margin of 12.5% at midpoint. Given the scalability of the capital-light business model with strong recurring revenues and further cost-optimization potential in the cards (e.g. DTS integration), the new outlook looks clearly achievable.

In our view, the release fully confirms the success of the ongoing turnaround. We continue to like the company’s positioning among the technological leaders amid the structurally growing market for integrated business communication. Here, especially the historically underpenetrated German market should offer compelling growth prospects going forward.

Although NFON shares have been on a rise this week, valuation continues to be attractive, as stock is trading on a mere 1.1x EV/Sales ‘23e. We reiterate BUY, unchanged PT of € 11.70 based on DCF.

You can download the research here:
http://www.more-ir.de/d/29101.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 ++++++++++
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 43,03 57,12 67,60 75,89 80,79 82,34 88,00
EBITDA1,2 -7,78 -6,98 2,32 -2,03 -5,27 6,80 10,00
EBITDA-Margin3 -18,08 -12,22 3,43 -2,68 -6,52 8,26 11,36
EBIT1,4 -8,47 -9,99 -1,83 -8,97 -12,03 -0,52 2,50
EBIT-Margin5 -19,68 -17,49 -2,71 -11,82 -14,89 -0,63 2,84
Net Profit (Loss)1 -8,11 -10,92 -2,24 -8,91 -15,58 -0,80 1,90
Net-Margin6 -18,85 -19,12 -3,31 -11,74 -19,29 -0,97 2,16
Cashflow1,7 -4,96 -7,19 1,15 -1,76 -3,87 6,84 0,00
Earnings per share8 -0,76 -0,77 -0,15 -0,54 -0,94 -0,05 0,11
Dividend per share8 0,00 0,00 0,00 0,00 0,00 0,00 0,00
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: KPMG

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
©boersengefluester.de
NFON
WKN ISIN Legal Type Marketcap IPO Recommendation Plus Code
A0N4N5 DE000A0N4N52 AG 85,29 Mio € 11.05.2018 8FWH4G3G+8X
* * *
PE 2025e PE 10Y-Ø BGFL-Ratio Shiller-PE PB PCF KUV
28,61 46,82 0,61 -17,05 1,81 12,47 1,04
Dividends
Dividend '2022
in €
Dividend '2023
in €
Dividend '2024e
in €
Div.-Yield '2024e
in %
0,00 0,00 0,00 0,00%
Financial calendar
Annual General Meeting Q1-figures Q2-figures Q3-figures Annual press conference
26.06.2025 22.05.2025 21.08.2025 21.11.2024 17.04.2025
Performance
Distance 60-days-line Distance 200-days-line Performance YtD Performance 52 weeks IPO
Last Price (EoD)
+0,00%
5,15 €
ATH 22,90 €
-6,65% -10,85% -24,93% -21,97% -57,08%

Advertising is an important revenue channel for us. But we understand, that sometimes it becomes annoying. If you want to reduce the number of shown ADs just simply login to your useraccount and manage the settings from there. As registered user you get even more benefits.
          Qualitätsjournalismus · Made in Germany © 2024          
The news manufactory

Good luck with all your investments

Founded in 2013 by Gereon Kruse, the financial portal boersengefluester.de is all about German shares - with a clear focus on second-line stocks. In addition to traditional editorial articles, the site stands out in particular thanks to a large number of self-developed analysis tools. All tools are based on a completely self-maintained database for more than 650 shares. As a result, boersengefluester.de produces Germany's largest profit and dividend forecast.

Contact

Idea & concept: 3R Technologies   
boersengefluester.de GmbH Copyright © 2024 by Gereon Kruse #BGFL