Tecnotree: Fruit of the money tree yet to be harvested
Over the last few years, Tecnotree has sealed its return from a company in crisis to a profitable growth company. However, this growth has tied up significant working capital in the form of receivables, and in the coming years the company will need to demonstrate a sustained improvement in its cash flow profile. At the same time, the company is struggling with a number of external challenges, such as high cost inflation and economic uncertainty affecting its customer base. Despite the elevated risks and the weaker profitability estimates for next year than in recent years, the valuation of the stock looks attractive (2023e: EV/EBIT 8x and P/E 12x).
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Tecnotree
10.73
13
Accumulate
Accumulate
Tecnotree operates in the IT sector. The company specializes in the development of digital communication solutions. The services include, for example, business process and subscription management services for customers in telecom and other digital service providers. Operations are held on a global level, with the largest presence around Asia, Africa and the Middle East.
Read more on company pageKey Estimate Figures15.09.2022
| 2021 | 22e | 23e | |
|---|---|---|---|
| Revenue | 64.2 | 69.3 | 74.6 |
| growth-% | 21.59 % | 7.99 % | 7.66 % |
| EBIT (adj.) | 23.7 | 16.9 | 18.3 |
| EBIT-% (adj.) | 36.88 % | 24.33 % | 24.54 % |
| EPS (adj.) | 0.06 | 0.04 | 0.05 |
| Dividend | 0.00 | 0.00 | 0.00 |
| Dividend % | |||
| P/E (adj.) | 501.13 | 59.87 | 53.39 |
| EV/EBITDA | 364.05 | 35.63 | 32.00 |
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