Strong growth in cloud business, margin weaker due to investments
The 9-month figures of All for One Steeb AG (ISIN DE0005110001, Prime Standard, A1OS GY) show again high sales growth (+11%; org. 9%) accompanied by a clearly disproportionately low EBIT development (-6%) due to capital expenditure. This figure also includes a one-off effect (€0.6 million), but investments continue to be the main reason for the margin development. These are necessary in order to be able to address the increasingly extensive SAP world holistically (building up experience, expanding personnel) and efficiently (process accelerator). While we remain confident about our sales expectations, we lower our EBIT forecast for 2017/18 in the face of Q3 figures (investments in personnel, slightly increased employee turnover). Fundamentally, the All for One Steeb share still has potential.
Our price target for shares in All for One Steeb, based equally on the DCF valuation and the peer group analysis, is €75.90. 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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