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: Kaufen
from: 10.04.2024
Target price: EUR 12.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow

FY23 final figures in line // Strong FY24 ahead; chg.

Multitude recently reported final figures for FY23 that were in line with prelims. Management also confirmed its FY24 EBIT guidance of € 67.5m. In detail:

Sales came in at € 230.5m (+9% yoy vs eNuW old: 228m), driven by the strong growth of the net loan book (NAR) to € 636m (+21% yoy; including c. € 576 loan to customer (vs eNuW: € 560m) and c. € 60m attributable to warehouse lending). Importantly, all segments contributed significant yoy NAR and sales growth.

EBIT increased by 45% yoy to € 45.5m, slightly above our estimates of € 44.6m (eNuW old) and achieved its FY23 guidance of € 45m. The solid bottom line is due to stable OPEX thanks to efficiency measures (marketing and personnel) as well as the solid topline growth. Driven by NAR expansion and higher reference rates, interest expenses increased to € 26,6m (vs eNuW old: € 25.4m, including: € 22.2m interest for customer deposits and € 4.3m foreign exchange loss; excluding € 5.4m interest expenses for perpetual bonds), resulting in an EBT of € 19m (+40% yoy).

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 group's “cashcow” (ferratum) and tight cost control that the company already showed in FY23 give us additional confidence. Mind you, the company reached its guidance for the 3rd consecutive year in FY23.

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

Multitude remained one of our NuWays Alpha picks for FY24 and we reiterate BUY with an increased PT of € 12 PT (old: € 10), as we roll-over our residual income model.

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http://www.more-ir.de/d/29363.pdf
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