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December 2nd, 2019 | 07:50 CET

USU Software AG - decline in sales followed by price target change

  • Software
Photo credits: pixabay.com

USU Software AG, based in Möglingen, Germany, develops and distributes software solutions for knowledge-based service management through its subsidiaries. Its range of services includes solutions for strategic and operational IT and enterprise service management. Customers receive a complete overview of their IT processes and IT infrastructure and are able to plan, bill, monitor and control services transparently. USU is one of the world's leading manufacturers of software license management solutions.

time to read: 1 minutes | Author: Mario Hose
ISIN: DE000A0BVU28

Table of contents:


    Well-known clientele worldwide

    The international clientele of the USU Group now includes over 1,000 companies, including Allianz, Baloise Group, BOSCH, BMW, Daimler, Deutsche Telekom, DEVK, EDEKA, Heidelberger Druckmaschinen, Jacobs Engineering, Jungheinrich, Poste Italiane, Texas Instruments, VW, W&W and ZDF. In the first nine months of 2019, USU Software AG continued its growth course with a 6.9% increase in net sales from EUR 64.28 million to EUR 68.71 million.

    The expanded revenue base, in particular the high dynamics of the high-margin license revenues, resulted in a clearly disproportionate increase in EBIT. EBIT adjusted for acquisition-related special effects increased by 58.2% from EUR 1.82 million to EUR 2.88 million. Earnings after taxes, which rose significantly from EUR 0.27 million to EUR 1.40 million, also benefited from the strong expansion of sales revenues, especially in the license business.

    Sales and profit decline

    While revenues of EUR 98 to 101 million were previously expected for 2019, revenues of EUR 93 to 95 million are now expected to be achieved. The previously expected adjusted EBIT of EUR 7.5 to 10 million was also reduced to EUR 5 to 8 million.

    Based on the lower 2019 forecasts, the medium-term planning was also adjusted. Average organic growth in the coming years is expected to be around 10%, accompanied by an improvement in the adjusted EBIT margin to 13 to 15% over the next four years.

    Rating remains, price target declines

    In connection with this development, the analysts at GBC Research have significantly reduced their sales forecasts. In 2019, they expect revenues of EUR 93.20 million instead of the previous EUR 98.50 million. In 2021, sales of EUR 102.52 million are expected instead of the previous EUR 113.74 million.

    Adjusted EBIT should increase to EUR 10.97 million by 2021, which is well below the previous forecast of EUR 18.07 million. As part of the DCF valuation model, the forecast adjustments have led to a reduction in the price target from the previous EUR 24.70 to EUR 19.70. The share price target of EUR 19.70 has been reached since the beginning of the year. The GBC experts continue to award the Rating BUY.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author



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