AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

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Bloomberg   KEYW BB
Smart Cards-Security  /  Belgium  Web Site   |   Investors Relation
The soft bet is paying off
Target
Upside 121%
Price (€) 1.02
Market Cap (€M) 24.0
Perf. 1W: -2.86%
Perf. 1M: 5.15%
Perf. 3M: -6.42%
Perf Ytd: -6.42%
10 day relative perf. to stoxx600: -3.72%
20 day relative perf. to stoxx600: 1.95%
Target Change15/10/2018

Change in Target Price€ 1.98 vs 1.73+14.6%

Change in EPS2018 : € 0.18 vs 0.18-0.63%
2019 : € 0.20 vs 0.22-8.20%

We have upgraded our earnings forecast for FY18 due to the transition phase going well. Although the results have been affected by higher exceptional charges (significant terminal obsolescences and payment defaults by customers) in H1 18, we expect growth in operating profitability for the full FY18.



Change in DCF€ 2.17 vs 1.51+43.9%

Our DCF valuation is supported by the increase in our forecasts in the medium to long term. Indeed, we believe that the strategy to become more of a software group will be profitable. The company, currently in the middle of its transition phase, is facing significant costs linked to its two recent acquisitions (Magellan and EasyOrder) but we expect that this will be largely compensated by the software sales growth in the following years.



Updates

30 Aug 19 Earnings/sales releases
Software continues to drive up the top-line

15 Mar 19 Earnings/sales releases
Still in transition

09 Nov 18 Earnings/sales releases
Still in transition, the group showed revenue gro...

16 Oct 18 Earnings/sales releases
Strong revenue growth, but profitability still imp...

09 Mar 18 Earnings/sales releases
FY17 - a transition year

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