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Research

In a phase of strong value creation

By Inderes
23.05.2019, 14.30
Admicom
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Admicom company update (estimates, recommendation and target price) 22/3/2019, translation published 23/5/2019 15:30

We reiterate Admicom’s reduce recommendation and revise the target price to EUR 35.0 (previously EUR 25.0). Admicom is continuing strong value creation, supported by strong continued growth with an extremely profitable business model as well as strong competitive advantages and market trends. We expect the company’s annual profit growth to reach over 30% in the next couple of years, wherein previous evidence of growth and the business model based on continuing revenue provide visibility. We are now more positive about the company’s market potential and sustainable level of profitability and liquidity, which increases the acceptable valuation level of the share. Even though the current high valuation factors can be justified by strong profit growth, the strong stretching of the valuation has consumed the upside potential of the share over the short-term.

Admicom

39.3EUR23.05.2019, 18.00
39EURTarget price
Reduce
Recommendation updated:08.04.2019

Admicom operates in the IT sector. The company is a developer of cloud-based services that mainly concern administration, accounting, payroll management, and project management. In addition to the main business, training and customer support are offered. The customers are found among small and medium-sized corporate customers, with the largest operations in construction and industry. The head office is located in Jyväskylä.

Read more on company page

Key Estimate Figures08.04.2019

201819e20e
201819e20e
Revenue11.515.820.6
growth-%41.5 %38.1 %30.5 %
EBIT (adj.)4.36.38.0
EBIT-% (adj.)37.5 %39.6 %38.8 %
EPS (adj.)0.711.041.33
Dividend0.480.700.90
Dividend %2.3 %1.3 %1.7 %
P/E (adj.)29.051.940.6
EV/EBITDA18.536.128.3
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