NFON AG
ISIN: DE000A0N4N52
WKN: A0N4N5
19 August 2024 09:01AM

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

NFON AG · ISIN: DE000A0N4N52 · EQS - Analysts
Country: Germany · Primary market: Germany · EQS NID: 20537

Original-Research: NFON AG - from NuWays AG

19.08.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of 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.


Classification of NuWays AG to NFON AG

Company Name: NFON AG
ISIN: DE000A0N4N52
 
Reason for the research: Update
Recommendation: BUY
from: 19.08.2024
Target price: EUR 11.70
Last rating change:
Analyst: Philipp Sennewald

Q2 preview: Further improvements on top- and bottom-line

Topic:
NFON will release its Q2 figures this week on Thursday.Here is what to expect:

Q2 sales are seen to increase by 6% to € 21.6 based on an increased seat base (eNuW: +4% yoy to 666k) as well as price increases that were imposed during the quarter. Recurring revenues are seen to increase slightly stronger by 6.4% to € € 20.3m, implying a recurring revenue ratio of 94%, allowing for sound visibility given the company’s excellent customer retention (churn rate < 1% p.m.).

Q2 adjusted EBITDA is expected to show a further sequential improvement at € 2.9m, implying a 13.4% margin, marking a strong yoy improvement of 6.3pp. Main reason for the increased efficiency was the implementation of ongoing cost saving measures in connection with reduced marketing as well as personnel expenses. Reported EBITDA should come in at € 2.5m (eNuW).

Against this backdrop, we expect management to confirm the FY guidance of ARR growth in the midto upper-single-digit-% range (eNuW: +5.3% yoy) and an adjusted EBITDA of €  10-12m (eNuW: €  11.5m). In our view, this should be easily achievable, given that the lower end would require only 3.4% recurring sales growth at a 10.7% adj. EBITDA margin in H2. Moreover, FCF should again be positive and even slightly up sequentially (Q1: € 0.2m).

DTS integration to offer further optimization potential. In the beginning of Q3, NFON announced the finalization of the formal merger with Deutsche Telefon Standard GmbH (DTS), which was acquired back in 2019. DTS is offering a similar product portfolio that was not fully integrated yet, having its own salesforce, HR, accounting, etc. Going forward, DTS shall be fully integrated into NFON, which should create significant synergies to become visible as early as H2’24e.

Overall, NFON remains well positioned to benefit from the growth potential in the still underpenetrated European, and especially German PBX market. On top of this, cross- and up-selling of well perceived premium solutions like CC Hub should allow for continuous ARPU and margin expansion going forward.

Valuation continues to appear undemanding, in our view, as shares are trading on a mere 1.1 EV/Sales ‘24e (9.6x EV/EBITDA). We therefore reiterate BUY with an unchanged PT of € 11.70 based on DCF. NFON remains part of our NuWays Alpha List.

You can download the research here: http://www.more-ir.de/d/30537.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
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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1970015  19.08.2024 CET/CEST

fncls.ssp?fn=show_t_gif&application_id=1970015&application_name=news&site_id=boersengefluester_html

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%

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