Increased M&A firepower

Vitec Software Group AB: 2 directors

Two Directors at Vitec Software Group AB sold/bought 6,000 shares at between 500.750SEK and 518.000SEK. The significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's dir...

Another capital raise de-risks growth story

Solid underlying development

We raise expectations for Enova, but leave rest fairly unchanged. Adj. EBITA up 4% (inc l. new M&A) in 2024-26e. We raise our TP to SEK 550 (530) but keep HOLD on limited upside.

An Enova driven beat in Q2

Less M&A contribution ahead

We expect 8% adj. EBITA growth in Q2. Q2 typically also a weaker cash flow quarter. Solid business but few re-rating catalysts; HOLD

The power of M&A compounding

Vitec - Quality through and through, but pricy

High-quality & low-risk SaaS business model impresses Share is valued accordingly but ROIC is below 10% At 23x 2023e EV/EBITA, we initiate HOLD, TP SEK 350

Vitec - Terminating coverage

ABGSC ceases coverage of Vitec …due to the end of the contractual period Last published estimates are shown in this report

Vitec - Estimates down 2-5% on higher costs

Organic growth remains in healthy high-single digits Salaries and travel costs reduce adj. EBITA by 2-5% Share at 28.3x 2023e EV/adj. EBITA

Vitec - Margin miss driven by higher costs

8% organic growth (cons 8%) and in line sales… …while higher costs caused ~20% adj. EBITA miss Consensus estimates to come down mid-single digit

Vitec - Increased M&A pace

Solid underlying momentum likely to continue in Q2… …and largest acquisition ever completed in July Adj. EBITA +8-17%, share at 30.3x ‘23e EV/adj. EBITA

Vitec - Showcasing an impressively resilient top-line

Organic growth beat in Q1 from price increases… …results in 4-8% higher adj. EBITA in ’22e-’24e 37.7x ’22e EV/adj. EBITA, 40% premium to its 5-year avg

Vitec - A strong start to the year

8% organic growth in Q1, EBITA +2% vs cons KPI linked price increases in Q1 support 2022e Organic growth to continue and strong M&A headroom

Vitec - Solid organic outlook and room for M&A

Closing 2021 with 7% org. growth and margin increases Good financial headroom and capabilities for further M&A 29.9x 2022e EV/adj. EBITA vs 5-year average of 29.0x

Vitec - Weaker sales mainly behind the miss

Sales -5% and EBITA -18% vs cons on sales miss Two acquisitions and an equity issue completed in Q3 Share has been strong into numbers (+8% in 1 month)

Vitec - We expect a stable Q2’21e from Vitec

ABGSC Q2’21e EBITA of SEK 93m Raising ’21e-‘23e EBITA by 0.7-1.2% on recent M&A Trading at EV/EBITA 32-28x, ~15% above peer median

Vitec - Strong Q1’21 report, M&A to continue in ’21e

Q1’21 EBITA SEK 96m, +9.1% vs. ABG, -2.9% vs. cons. Continued margin tailwinds drive estimate changes EV/EBITA 38-34x ‘21e-‘23e, excl. future M&A

Vitec - Solid start to 2021 for Vitec

Q1 sales of SEK 373m, +21% y-o-y, +6% organic growth Q1 EBITA SEK 96m, +8.6% vs. ABGSC, -8.0% vs. cons Preliminary ‘21e consensus EBITA revisions of +/- 1%

Vitec - Estimate beat in Q4 with strong ‘21e outlook

Q4 EBITA SEK 98m, +22.8% vs. ABG, +16.6% vs. cons. Business model leverage to be further proved in ‘21e EV/EBITA 32-28x for ’21e-’22e, ~25% above peers