Sales target exceeded, Cloud Services and Support continue their strong growth
All for One Group AG's (ISIN DE0005110001, Prime Standard, A1OS GY) preliminary sales figures for 2018/19 (€359.2m; +8%) are above its guidance and our estimates. EBIT [€12.6m or (adjusted) €19.8m] was in line with expectations. The start of the “strategy offensive” – involving one-off expenses of around €7bn – was successfully completed in the financial year. However, measures such as extending the service portfolio will continue to put pressure on the operating margin. In the next financial year, the company expects sales growth to be in the mid-single-digit percentage range – between €375m and €385m – with EBIT rising to between €20m and €22m. Given the planned stepwise progress towards the mid-term EBIT margin target (>7% from 2022/23), the valuation of shares in All for One Group is attractive, with an EV/sales multiple of 0.57. The price target has been increased slightly due to peer group and reference base effects.
Our price target for the All for One Group share, equally based on DCF valuation and peer group analysis, is €69.80. We reiterate our “Buy” rating.
All for One Steeb is a SAP service provider for the midmarket. Co.'s range of product and services include consulting, the sale of software licenses, outsourcing and IT services. Co.'s products and services provide customer support extends from management and technology consulting, software licenses, industry solutions, and optimization projects to software maintenance, outsourcing and managed services from Co.'s data centers' private cloud, and also covers all enterprise processes. Co.'s portfolio also encompasses add-on solutions and services for the SAP Enterprise Resource Planning Human Capital Management platform and SAP SuccessFactors.
Since 2007, BankM AG (Frankfurt am Main, Germany) is the partner of small and medium-sized enterprises and specializing in capital market financing with its experienced, interdisciplinary team. SME customers benefit from individual service and rapid access to selected investors that fit their needs. BankM's services include capital market advisory, arranging IPOs and capital increases for equity financing, debt advisory and debt capital mediation, designated sponsoring and research as well as M&A, hereby specializing in the identification of suitable strategic partners in China.
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