Original-Research: Multitude AG - from NuWays AG
Classification of NuWays AG to Multitude AG
Strong Q2 figures // Guidance appears conservative; PT up Sales are flattish at € 63.6m (-2% yoy, -1% qoq vs eNuW: € 64.7m), mainly driven by consumer banking that declined by 6% yoy to € 50.4m (-3% qoq vs eNuW: € 54.6m). Importantly, interest income of wholesale banking increased by 61% yoy to 4.6m (vs eNuW: 4.4m) and commission fees by 150% yoy to € 3.0m (vs eNuW: € 2.5m), mostly stemming from the partner business, effectively compensating for the lower interest income. EBT came in at strong € 8.0m (47% yoy), beating our expectation (eNuW: € 7.8m) thanks to outstanding risk management visible in the significantly lower impairments (-15% to € 20.2m), despite an increasing loan book (22% yoy to € 852m). This contrary developments paired with the flattish interest income is indicating a improving quality of the loan portfolio. Apart from that, the ongoing cost control as well as efficiency and automation measures kept OPEX rather stable, promising further scale-effects in the future. Net income came in at € 6.9m. With H1 net income of € 14.2m, Multitude is seen well on track to reach its already increased FY25 net profit guidance of € 24-26m (eNuW new: € 28.1m), especially considering the substantially increased loan book that served as an early indicator for future topline growth in the past. We are hence convinced that the company should achieve € 267m interest income in FY25 (eNuW). Going forward, further sequential growth of the net loan book in Q3 and Q4 to € 880m until YE, combined with ongoing tight cost control should allow an EBT margin of 12% in FY25 and 14% in FY26. Moreover, interest expenses are expected to increase only moderately by 10% yoy to € 45.1m in FY25 and should be compensated by increasing topline (interest spread should remain stable). Apart from that, we see an ongoing dynamic in the commission income mostly stemming from the partner business as well as from the payment business within wholesale banking. For FY25, we conservatively anticipate some € 16.3m and for FY26 some € 20.3m. In a nutshell, we continue to look at Multitude as a growing company with perspectively three profit centers within the Group. While the cash cow of the Group - the consumer banking segment - should deliver only stable interest income, but increasing commission fees, we expect growing interest income in CapitalBox and Wholesale banking going forward. As OPEX are seems to be well under control, Multitude should continue to enjoy the typical scale effects of a platform business, driving EBT and net income. Despite the positive stock price performance since the beginning of the year, the company does still not look expensive for a growing, highly profitable, dividend paying company, trading at only 6.9x P/E'25. We reiterate BUY with a increased PT of € 12.50 (old: € 12.00), based on our residual income model. With that, Multitude remains one of our NuWays Alpha picks. You can download the research here: multitude-ag-2025-08-22-update-en-de96e For additional information visit our website: https://www.nuways-ag.com/research-feed Contact for questions: NuWays AG - Equity Research Web: www.nuways-ag.com Email: research@nuways-ag.com LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++ The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. | ||||||||||||||||||||
2187408 22.08.2025 CET/CEST
