QUEST HOLDINGS | Multi-segment growth, single-digit multiple
Raising forecasts, high single digit EBIT CAGR… – We have revised our forecasts to reflect the integration of Benrubi into Quest’s Commercial Products division, along with modest upgrades to IT and Courier Services EBITDA. Benrubi is expected to contribute c€5m in EBITDA (11-mth impact), adding c40bps to the commercial segment margins. As a result, we lift our 2025e group EBITDA by 5% to €102.9m (+12% YoY), on revenues of €1,438m (+8% YoY). Looking forward, we increase group EBITDA by 6-9% over 2025–2027e, driven by ongoing synergies, targeted capex, and sustained momentum in e-commerce and digital transformation. We now forecast group EBIT to grow at a 9.5% CAGR in the same period, exceeding €100m by 2027e.… following resilient multi-sector growth in 2024 – Quest delivered another year of solid performance in 2024, with EBITDA up 10% YoY to €91.8m and revenues up 11% to €1,325m. Growth was broad-based: double-digit gains in IT Services and Commercial Products, mid-single-digit in Courier Services, and steady contribution from RES. Margins remained stable at 6.9%, despite some headwinds in Commercial Products. Net profit rose 10% YoY to €49m, 4% above our estimate.
Healthy balance sheet bolstered by M&A – Quest group ended 2024 with a net cash position of €82m (ex-leases), bolstered by the €74m proceeds from the 20% ACS stake sale. This provided the group with ample flexibility, and it completed the €27m acquisition of 70% of Benrubi in January 2025 through cash. At the same time Quest has proposed a higher dividend of >€30m (gross DPS of €0.30) up from c€23m last year. Looking ahead, Quest has maintained a call option for the disposal of the remainder 80% stake in ACS (which could be triggered in Oct’26 or Oct’27).
Cash generation supports reinvestment and returns – Quest consistently generates robust operating free cash flow, with a 10-year average conversion ratio >50% (of EBITDA). It has therefore been able to press ahead with investments, while at the same time rewarding shareholders. In 2025, we factor in capex (ex-acquisitions) of c€30m, of which c€20m related to ACS (locker rollout plans). The combination of healthy cash generation and a strong balance sheet provides firepower to invest in organic growth, pursue M&A, and return cash to shareholders. On the latter, we assume a stable payout ratio >40%, aligned with earnings growth.
Valuation – We value Quest using a SOTP of the 4 segments, while applying a 10% holding discount. Following the upgrade to our forecasts, we lift our indicative valuation range to €7.6-€9.0. Quest currently trades at 7.7x its 12mth Fwd EV/EBITDA, but the valuation is even more compelling for the ex-ACS stub. Stripping out ACS, whose 20% stake sale to GLS implies a standalone EV of €370m, the stub (Commercial Products, IT Services, RES) is trading at just 5.7x 12mth Fwd EV/EBITDA, which undervalues both the structurally growing IT Services arm and the margin-accretive trajectory of the Commercial division post-Benrubi.
Quest Holdings SA. Quest Holdings SA, formerly Info-Quest SA, is a Greece-based information technology (IT) and telecommunication solutions provider. Its main activities include the digital technology industry, with activities across the entire spectrum of the ICT market, from the manufacture and distribution of products to the design, application and support of Integrated IT Solutions for large organizations in the private and public sectors. Quest Holdings coordinates its activities in this market via the strongest companies in the field: Info Quest Technologies, Uni Systems and iSquare. In the Green Energy sector, the Group implements large investment projects on electricity production from renewable sources with licensed power exceeding 400 MW regarding more than 30 wind and photovoltaic parks. In this market, Quest Holdings is active through Quest Energy and its subsidiaries. At the same time, the Group is also active in the Courier Services sector, through ACS.
Eurobank Equities is a Greek-based firm offering research, sales and trading services to institutional, corporate and private clients. The company is wholly owned by Eurobank, one of the 4 systemic banks in Greece.
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