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Guidance exceeded, weaker start and post-pandemic growth acceleration to expect in 2020/21

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The preliminary figures of All for One Group SE (ISIN DE0005110001, Prime Standard, A1OS GY) for the business year 2020/21 exceeded our expectations. Sales declined only about 1%, despite the challenging pandemic/lockdown environment. Reported EBIT of €19.3 million was around 53% above the previous year's figure, which was burdened by one-time costs. Although a positive one-time effect (€0.5 million) for pensions was recorded this year, our previous EBIT expectations (€16.1 million) were clearly exceeded. The company´s outlook for 2020/21 assumes only a slight increase in sales. This reflects some cautiousness due to the current pandemic situation, affecting the typically strong year-end quarter and the hope for a quick normalisation (with catch-up effects related to SAP S/4HANA migrations) starting around April 2021. This recovery does not seem to us to be reflected in the current share price, as All for One Group continues to trade with an EV/sales multiple of just around 0.64 - which is well below peer valuations.

Our price target for the All for One Group share, equally based on DCF valuation and peer group analysis, is €67.60. We reiterate our “Buy” rating.