Solteq: Software transformation progressing strongly
Solteq’s performance continued as strong in Q1 and the result exceeded our expectations clearly. After several difficult years, Solteq’s investor story started to strengthen gradually last year thanks to the growing software and product business. Due to the significantly improved earnings level, the cash flow has strengthened, balance sheet improved, and risk profile lowered. Thanks to the earnings growth, the share’s valuation is very attractive, which together with systematic implementation of the strategy still supports our strong view of the share.
Solteq
Solteq is an IT consulting company. The company specializes in ERP - Enterprise Resource Planning. Other services offered are related to financial management and inventory management. The customers consist of small and medium-sized corporate customers active in the retail and hotel industry. Solteq operates worldwide, with the largest presence in Europe, North America, and Asia.
Read more on company pageKey Estimate Figures29.04.2021
2020 | 21e | 22e | |
---|---|---|---|
Revenue | 60.5 | 69.4 | 76.5 |
growth-% | 3.71 % | 14.73 % | 10.23 % |
EBIT (adj.) | 5.8 | 9.1 | 10.9 |
EBIT-% (adj.) | 9.56 % | 13.17 % | 14.28 % |
EPS (adj.) | 0.15 | 0.31 | 0.39 |
Dividend | 0.15 | 0.10 | 0.15 |
Dividend % | 5.36 % | 16.18 % | 24.27 % |
P/E (adj.) | 19.24 | 2.01 | 1.57 |
EV/EBITDA | 7.06 | 2.13 | 1.42 |