Original-Research: Multitude SE - from NuWays AG

Classification of NuWays AG to Multitude SE

Company Name: Multitude SE
ISIN: FI4000106299

Reason for the research: Update
Recommendation: BUY
from: 18.03.2024
Target price: 10.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow

Strong Q4 figures // Bullish FY24 guidance confirmed; chg

End of last week, Multitude reported a very strong set of Q4 figures and confirmed its FY24 EBIT guidance of € 67.5m. In detail:

Sales came in at € 63.1m, up 9% qoq and 15% yoy, slightly above our estimates of € 60.4m (eNuW; restated to reflect directly attributable CAC), driven by the strong growth of the net loan book (NAR) to € 636m (21% yoy; including c. € 60m attributable to warehouse lending). Importantly, all segments contributed significantly to yoy NAR growth. In FY23, Multitude reached € 231m sales (9% yoy vs eNuW: 228m).

EBIT increased by 16% qoq to € 13.5m (40% yoy), above our estimates of € 12.2m (eNuW). With 45.5m on the FY base, the company achieved its FY23 guidance of € 45m. The solid bottom line is due to stable OPEX thanks to efficiency measures (marketing, personnel) as well as topline growth. Driven by NAR expansion and higher reference rates, financial costs increased to c. € 8.5m (vs eNuW: € 6.6), resulting in an EBT of approximately € 4.1m (vs eNuW: € 6.3m).

On the back of this strong set of numbers, management confirmed the FY24 EBIT guidance of € 67.5m (vs eNuW old: € 51m) expecting further topline growth and scale effects. In our view, the guidance looks ambitious, but not out of range given 1) the significantly increased loan book that should fully materialize within FY24, 2) the strong growth momentum of CapitalBox as well as the opportunities around the new segment wholesale banking that already gained traction in FY23. That paired with the ongoing stable performance of the “cashcow” of the Group (ferratum) and tight cost control that the company already showed in FY23 give us additional confidence. Mind you that the company reached its guidance for the 3rd consecutive year in FY23.

As the stock looks still trading at a negative EV and a 3.4x PE´24, the growing, highly profitable, resilient and dividend paying company continues to look undebatably cheap.

Multitude remains in our NuWays Alpha List and we reiterate BUY with an unchanged € 10 PT, based on our residual income model.

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http://www.more-ir.de/d/29173.pdf
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