THE NAGA GROUP AG
ISIN: DE000A161NR7
WKN: A161NR
27 May 2024 09:01AM

Original-Research: THE NAGA GROUP AG (von NuWays AG): Kaufen

THE NAGA GROUP AG · ISIN: DE000A161NR7 · EQS - Analysts
Country: Germany · Primary market: Germany · EQS NID: 19889

Original-Research: THE NAGA GROUP AG - from NuWays AG

Classification of NuWays AG to THE NAGA GROUP AG

Company Name: THE NAGA GROUP AG
ISIN: DE000A161NR7

Reason for the research: Update
Recommendation: Kaufen
from: 27.05.2024
Target price: EUR 1.20
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow

EGM approved merger with CAPEX chg est. & PT

Topic: During the recently held extraordinary general meeting, NAGA received the approval for the merger with CAPEX with a 99.81% majority. As the pending regulatory change of control process is rather a formality, we adjust our estimates, now fully reflecting the merger with CAPEX. For FY24 we now expect:

Sales of € 77.8m, resulting from 15.9m transactions (eNuW) and an avg. revenue per trade of € 4.9 (eNuw). Apart from the technical impact of the merger, the stronger trading figures from peers that indicate an upswing of customer activity in the market, paired with cross-selling potentials between NAGA and CAPEX, are driving sales. The number of active customers (eNuW: 46k) and trading volumes (eNuW: € 340bn; € 21.4k per trade) should develop accordingly.

EBITDA is expected to come in at a solid € 10.1m, thanks to the strong topline development as well as anticipated synergy effects. While management expects an OPEX reduction of some € 10m, we are a bit more conservative, anticipating only € 8.5m (eNuW: marketing spending: € 4m, personnel expenses: € 2.5m, other operating expenses € 2m). EBT is seen at negative € 0.7m.

Despite the fact, that the merger looks like an unfavourable deal for existing shareholder due to its dilutive nature(existing shareholders possess only 25% of all outstanding shares post merger and the outstanding convertible bond as well as management's long-term incentive scheme could dilute them further), the growth potential of the joint Group is huge: In 2026, management plans to generate USD 250m in sales with 40% EBITDA margins. While we think this is a rather optimistic scenario, the past has already shown that an incremental positive change in the sentiment could have an enormous effect on the P&L of NAGA. The leverage of the joint Group could even scale this effect. Still, in our base case scenario we conservatively only anticipating € 98m in sales and an EBITDA € 20m (20% EBITDA margin), leaving room for positive surprises.

In light of the revitalization of customer activity in the brokerage space, paired with cross-selling and synergy effects arising from the merger, we see significant growth potential again.

BUY with a new PT of € 1.20 (old: € 1.30), based on DCF.

You can download the research here:
http://www.more-ir.de/d/29889.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 16,12 7,62 24,35 52,88 57,60 39,73 80,00
EBITDA1,2 0,27 -9,17 4,50 -4,20 -13,73 8,45 11,00
EBITDA-Margin3 1,68 -120,34 18,48 -7,94 -23,84 21,27 13,75
EBIT1,4 -4,82 -12,18 0,94 -9,55 -36,86 -57,59 1,50
EBIT-Margin5 -29,90 -159,84 3,86 -18,06 -63,99 -144,95 1,88
Net Profit (Loss)1 -4,10 -13,38 0,17 -10,76 -44,25 -60,97 -0,90
Net-Margin6 -25,43 -175,59 0,70 -20,35 -76,82 -153,46 -1,13
Cashflow1,7 -2,93 -2,40 1,61 -12,90 -14,52 -0,91 1,80
Earnings per share8 -0,10 -0,30 -0,01 -0,23 -0,82 -1,13 -0,02
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: MSW

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
Naga Group
WKN ISIN Legal Type Marketcap IPO Recommendation Plus Code
A161NR DE000A161NR7 AG 161,56 Mio € 10.07.2017 9F5FHX3Q+82
* * *
PE 2025e PE 10Y-Ø BGFL-Ratio Shiller-PE PB PCF KUV
0,00 1,72 0,00 -2,26 3,27 -177,15 4,07
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
30.08.2024 30.10.2024 28.06.2024
Performance
Distance 60-days-line Distance 200-days-line Performance YtD Performance 52 weeks IPO
Last Price (EoD)
-5,29%
0,72 €
ATH 17,78 €
-10,28% -14,15% -33,08% -36,07% -72,46%

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