Tecnotree: Expanding product portfolio and customer base
We have included Tecnotree's CognitiveScale acquisition last weekend in our estimates. We see the acquisition of CognitiveScale's AI platform as a sensible addition to Tecnotree's product portfolio, which will strengthen the company's position in its customer base. Due to the moderate price of the acquired businesses (2023e EV/S 1.2x) and the transaction being relatively small for a company of Tecnotree’s size, the risks associated with the transaction are also moderate. At this stage, there is still uncertainty about the impact of the acquisition on earnings, and in the big picture our earnings estimates are unchanged. However, we see the acquisition as contributing to Tecnotree's long-term growth prospects, against which the valuation of the stock remains moderate.
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Tecnotree
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 Figures15.12.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 64.2 | 70.5 | 81.0 |
growth-% | 21.59 % | 9.80 % | 14.91 % |
EBIT (adj.) | 23.7 | 15.7 | 16.9 |
EBIT-% (adj.) | 36.88 % | 22.27 % | 20.82 % |
EPS (adj.) | 0.06 | 0.04 | 0.04 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | 501.13 | 84.39 | 73.39 |
EV/EBITDA | 364.05 | 52.20 | 41.75 |