Vitec Software Group
Vitec - No slowdown in sight for Vitec (ABG Sundal Collier)
2019-07-11 20:47
Q2’19: 19.2% sales and 43.9% EBIT y-o-y growth
Slight estimate revisions from segment fine-tuning
Valuation above historical average after price rally
Solid Q2’19 report in line with ABGSCeVitec delivered a solid Q2’19 report and shows no signs of slowing down anytime soon. Reported net sales came in at SEK 291m, corresponding to y-o-y growth of 19.2%, which exceeded our estimate of SEK 288m by approximately 0.9%. Reported group EBIT after acquisition costs was SEK 37m, 3.9% below our estimate of SEK 39m. This is mainly due to a deviation in the Health & Education segment, which reported EBIT of SEK 4.3m compared to our estimate of SEK 5.5m. On the positive side, the Finance & Insurance and Estate Agent segments showed sizeable earnings strength, with EBIT margins of 18.3% and 17.3%, respectively, beating our estimates by 4.3pp and 7.3pp while representing substantial y-o-y improvement. During the quarter, Vitec’s recurring revenues rose by 22% y-o-y, to represent 78% of total net sales, corresponding to SEK 228m. We maintain a strong long-term outlook for Vitec, and the slight EBIT estimate revisions are mainly due to fine-tuning of the EBIT margin estimates in the Health & Education segment, which we believe have been slightly too aggressive in the past. EPS changes are majorly due to an adjustment of total outstanding shares.
Prominent new deal confirms product competitiveness
During the quarter, Vitec entered into a framework agreement with the Swedish Association of Local Authorities and Regions along with 200 municipalities, which are now able to purchase Vitec’s ActorSmartBook software solution at set terms. The software aims to ease reservation and raise occupancy rates of the municipality’s public facilities.
23.5x-19.5x EV/EBIT ’19e-’21e
At the current share price, Vitec is trading at a ‘19e EV/EBIT of 23.5x based on our updated estimates. This is approximately 30.5% above the five-year average NTM EV/EBIT of 18.0x. When compared to our peer group’s ‘19e EV/EBIT
...
- Läs mer på Introduce
Läsaren av innehållet kan anta att ABG Sundal Collier har erhållit eller kommer att erhålla betalning för utförandet av finansiella företagstjänster från bolaget. Ersättningen är på förhand avtalad och är inte beroende av innehållet.
info@introduce.se (Introduce.se)
ABG Sundal Collier - Introduce.se