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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: 13.05.2024
Last rating change: 
Analyst: Frederik Jarchow

Solid Q1 figures ahead // Multitude to continue on growth path
 
On Thursday, Multitude will report Q1´24 figures that should come in solid,
but with room for sequential improvements until YE. Here is what to expect:
 
Sales should come in at EUR 59m (+9% yoy, -6% qoq), mainly driven by the
strong growth of the net loan book (NAR) to EUR 636m in FY23 (including c. EUR
576 loan to customer and c. EUR 60m attributable to warehouse lending)
unfolding its full effect in Q1. We expect ferratum to have contributed
some 84%, CapitalBox 13% and the new segment wholesale banking 3% to total
sales.
 
EBIT is anticipated at EUR 10.3m (+7% yoy, -16.3% qoq), following the higher
topline and rather stable S&M expenses and personnel expenses as well as
other operating expenses, compensating for impairments on loans (19% yoy,
-15% qoq), that should come in higher than in Q1´23 due increased loan
book. As interest expenses should should have increased by c. 10% yoy to EUR
7.7m (eNuW; -1% qoq), EBT should come in at EUR 2.8m (-4% yoy).
 
While our estimates for Q1 imply a solid yoy growth in a challenging
economic phase, further significant sequential improvements throughout the
year are necessary to reach the FY24 EBIT guidance of EUR 67.5m (vs eNuW: EUR
57m). In our view, the guidance looks ambitious, but is not out of range
assuming 1) further growth of the loan book, partially materializing
throughout the remainder of 2024, 2) the strong growth momentum of
CapitalBox as well as 3) opportunities around the new segment wholesale
banking that already gained traction in FY23. That, paired with ongoing
tight cost control, that the company already showed in FY23, unlocking
scale effects (assuming ongoing topline growth as a result of the growing
loan book and stable margins) as well as the fact that Multitude reached
its guidance for the 3 rd consecutive year in FY23 give us additional
confidence.
As the stock is still trading at negative EV and a 3.4x PE´24, the growing,
highly profitable, resilient and dividend paying company to look
undebatable cheap.
 
BUY with an unchanged PT of EUR 12 PT, based on our residual income model.
Mind you that Multitude is one of our NuWays' Top Picks for FY24.

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http://www.more-ir.de/d/29713.pdf
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www.nuways-ag.com/research.

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Web: www.nuways-ag.com
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