Original-Research: Multitude SE - from NuWays AG
06.06.2025 / 09:00 CET/CEST
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Classification of NuWays AG to Multitude SE

Guidance hike after impressive Q1 profitability; chg

Multitude recently reported Q1´25 figures with net profit clearly beating expectations. Against this backdrop management increased its FY25 guidance. In detail:

• Sales of € 64.4m (0% yoy) is below the anticipated € 71.1m, mainly driven by ferratum that declined slightly to € 51.9m (-4% yoy vs eNuW: 57.9m). On the other hand CapitalBox and Wholesale banking show strong yoy improvements with € 8.6m (11% yoy) and € 3.9m (69% yoy) fueled by ongoing total NAR growth to € 787m (20% yoy; including c. € 665m loans to customers and c. € 122m debt investments attributable to wholesale banking).
• EBIT of € 18.8m (+61% yoy), is bang in line with expectations (eNuW: € 18.7m) due to 1) significantly improved impairments on loans that declined to € 22.2m (-21% vs eNuW: € 25.6m), despite increasing NAR, 2) € 2.4m share result from associated companies (vs € 0m in Q1´24), stemming from the stakes in e.g. Lea Bank 3) stable OPEX following improving efficiency and automation (e.g. personnel expenses of € 9.2m vs eNuW: € 9.8m and S&M expenses of € 3.3m vs eNuW: € 3.9m). Interest expenses increased with the growing loan book and the general interest environment (delayed by c. 12 months, eNuW) to € 11m (27% yoy), but not as strong as feared (eNuW: € 13m). As a result, net profit came in strong at € 7.2m (209% yoy vs eNuW: € 5.2m).

Overall, Multitude reported a strong set of Q1 figures. While the cash cow of the Group ferratum delivered stable sales, the growth trajectory in CapitalBox and Wholesale banking is fully intact. Further, management successfully solved the credit risk issues that weighed heavy on the P&L during FY24. As a result, Multitude achieved the highest Q1 net profit in the company´s history. Consequently, and thanks to good visibility into the next quarters, management increased its FY25 net profit guidance from € 23m to € 24-26m, which is absolutely reasonable (eNuW: € 27m).

Despite the positive share price performance of the last weeks, the company still does not look expensive for a growing, highly profitable, dividend paying company trading at only 4.2x P/E´25.

BUY with an unchanged PT of € 12 PT, based on our residual income model. Mind you that Multitude is one of our NuWays Alpha picks.

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NuWays AG - Equity Research
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Email: research@nuways-ag.com
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