Cash flow still needs to be proven
Tecnotree has continued to grow strongly in recent years, but the company has been unable to convert its EBIT into cash flow due to working capital tie-ups, foreign exchange losses and large investments in product development. The company's internal focus is currently on improving cash flow, but there is no evidence of this yet. The valuation would be attractive if the company's cash flow approached the company's profit level. However, we do not expect an immediate improvement here and with the current cash flow profile we do not see the risk/reward ratio as attractive.
Tecnotree
Tecnotree operates in the IT sector. The company specializes in the development of digital communication solutions. The services include, for example, business process and subscription management services for customers in telecom and other digital service providers. Operations are held on a global level, with the largest presence around Asia, Africa and the Middle East.
Read more on company pageKey Estimate Figures10/05
2023 | 24e | 25e | |
---|---|---|---|
Revenue | 78.4 | 82.3 | 86.2 |
growth-% | 9.50 % | 5.03 % | 4.67 % |
EBIT (adj.) | 23.8 | 27.2 | 26.4 |
EBIT-% (adj.) | 30.40 % | 32.97 % | 30.58 % |
EPS (adj.) | 0.71 | 0.96 | 1.07 |
Dividend | 0.01 | 0.02 | 0.02 |
Dividend % | 0.15 % | 0.67 % | 0.67 % |
P/E (adj.) | 9.63 | 3.12 | 2.81 |
EV/EBITDA | 4.09 | 1.49 | 1.01 |