123fahrschule SE
ISIN: DE000A2P4HL9
WKN: A2P4HL
07 November 2024 09:01AM

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

123fahrschule SE · ISIN: DE000A2P4HL9 · EQS - Analysts
Country: Germany · Primary market: Germany · EQS NID: 21213

Original-Research: 123fahrschule SE - from NuWays AG

07.11.2024 / 09:00 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 123fahrschule SE

Company Name: 123fahrschule SE
ISIN: DE000A2P4HL9
 
Reason for the research: Update
Recommendation: Buy
from: 07.11.2024
Target price: EUR 7.20
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald

Improved profitability and strong CFO in Q3

123f published a strong set of preliminary Q3 results, showing continuous top-line growth as well as improved profitability. Q3 preliminary sales increased by 11% to € 5.7m (eNuW: € 5.6m), which should have been predominantly driven by the Private Customer segment (eNuW: € 4.5m). Moreover, the Driving Instructor Training segment should have continued to grow strongly to € 0.7m (eNuW: +50% yoy). On the other hand, the Professional Driver Education segment is seen to have declined again in Q3 (eNuW: € 0.5m; -18% yoy).

Against this backdrop, Q3 adj. EBITDA significantly increased yoy to € 0.2m (flat in Q3 ’23), clearly demonstrating efficiency gains as well as operating leverage. Mind you, 123f imposed some accounting changes in the beginning of the year concerning build up of provisions, which is now made throughout the year instead of only once in December. Unadjusted EBITDA came in at € 0.1m.

The clear highlight of the release, however, was the improved operating cash flow, which came in at € 0.6m, showing a further sequential improvement compared to the first two quarters (H1 CFO: € 0.9m). With a CFO in 9M ’24 of € 1.5m, 123f already achieved 4x the amount of the entire FY ’23 (€ 0.4m). Yet, FCF should still have been slightly negative following the ongoing investments into the company’s proprietary software solutions.

Strategy 2027. In early November, management passed the new Strategy 2027 in reaction to the announced legislative changes, which are likely coming into effect in Q1 2026. Next to the obvious scale advantages of the return of online theory, 123f is going to focus on the practical training, which is going to receive a “digitalization boost” going forward driven by the comprehensive roll-out and further software development of the “digital driving instructor” in the simulator. According to CEO Polenske, this will enable 123f to reduce the price of a driver’s license by up to € 1,000, which should translate into massive market share gains in the company’s target regions. Thanks to the higher margin digital solutions and an expected reduction in vehicles and instructors, this should further allow for improving profitability.

Regarding the necessary financing of these projects as well as the roll-out of simulators, management is currently considering raising further capital, i.e. in the way of a convertible with a volume of € 4-5m.

Reiterate BUY with an unchanged PT of € 7.20 based on DCF.

You can download the research here: http://www.more-ir.de/d/31213.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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2024421  07.11.2024 CET/CEST

fncls.ssp?fn=show_t_gif&application_id=2024421&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 1,40 3,90 4,27 7,76 16,67 20,61 0,00
EBITDA1,2 -2,40 -3,10 -2,18 -3,79 -2,66 -0,89 0,00
EBITDA-Margin3 -171,43 -79,49 -51,05 -48,84 -15,96 -4,32 0,00
EBIT1,4 -2,60 -3,30 -2,86 -5,74 -5,63 -4,31 0,00
EBIT-Margin5 -185,71 -84,62 -66,98 -73,97 -33,77 -20,91 0,00
Net Profit (Loss)1 -2,04 -2,89 -1,99 -4,48 -4,38 -3,91 0,00
Net-Margin6 -145,71 -74,10 -46,60 -57,73 -26,28 -18,97 0,00
Cashflow1,7 -1,80 -2,68 1,81 -6,96 -2,77 0,39 0,00
Earnings per share8 -1,12 -1,59 -0,82 -1,85 -1,41 -0,80 -0,41
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: Morison Köln

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
123fahrschule
WKN ISIN Legal Type Marketcap IPO Recommendation Plus Code
A2P4HL DE000A2P4HL9 SE 13,78 Mio € 14.10.2020 Kaufen 9F28WX69+F9
* * *
PE 2025e PE 10Y-Ø BGFL-Ratio Shiller-PE PB PCF KUV
0,00 0,00 0,00 -2,17 0,84 35,62 0,67
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
06.05.2025 23.07.2024 06.11.2024 31.03.2025
Performance
Distance 60-days-line Distance 200-days-line Performance YtD Performance 52 weeks IPO
Last Price (EoD)
-3,13%
2,48 €
ATH 17,60 €
-10,89% -11,08% +1,64% +0,81% +125,45%

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