Report

The soft pushed up revenue, while the transition continues to impact profitability (Keyware)

The soft pushed up revenue, while the transition continues to impact profitability

EPS CHANGE

CHANGE IN TARGET PRICE€ 2.06 vs 2.08 -1.12%
Amadeus IT Group and EdenRed were added to our peers’ valuation to reflect Keyware’s offers better.

CHANGE IN EPS2019 : € 0.10 vs 0.16 -36.4%
2020 : € 0.11 vs 0.17 -34.2%
Following the integration of the group’s annual results, the FY18 EPS has been slightly pushed down. The transition from a hardware provider to a software developer continues to weigh negatively on profitability. Our previous EPS forecasts (€0.16 for FY19, and €0.17 for FY20) were disconnected from the previous full-year results. Therefore, we have lowered our estimates to reflect the current issues better, which we believe will end in the medium term.

CHANGE IN DCF€ 2.28 vs 2.34 -2.68%
While we have slightly downgraded the EBITDA forecasts for the next three years, our DCF valuation is unchanged. The transition phase should continue to impact negatively, but we are confident that it is a medium-term issue. Consequently, and to reflect the market growth potential, we have decided to increase our long-term growth for both sales and EBITDA by +1.5%.
Underlying
Keyware Technologies N.V.

Keyware Technologies NV. Keyware Technologies NV is a Belgium-based independent network service provider that offers electronic payment solutions. It is engaged in the: personalization, programming, installation, maintenance, rental and sale of fixed, portable and mobile payment terminals; implementation of payment transactions using Visa, MasterCard, Maestro, Amex, V-Pay, and JCB, among others; payment services for electronic-commerce and mobile-commerce; solutions for loyalty cards, as well as development and management of its payment transaction platform. The Company operates in two segments: Payment Terminals, engaged in the rental of terminals, the sale of payment terminals, installation of payment terminals, revenues related helpdesk and revenues relating to on-site interventions, as well as Payment Authorization, engaged in income related payment transactions and authorization services, transaction management for third parties, as well as loyalty processing and analysis services, among others.

Provider
AlphaValue Corporate Services
AlphaValue Corporate Services

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Analysts
Laura Parisot

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