Digital Workforce: Shifting focus from growth to profitability
Digital Workforce's revenue growth was well below expectations in H1, pressured by a mature market. However, the earnings level was in line with expectations. The company is now focusing primarily on profitability, which is logical in the current uncertain market environment. In the current market environment, we expect more moderate but profitable growth in the coming years. In our view, the valuation of the stock is attractive from several perspectives (2024e EV/S 1.1x, EV/EBIT 15x and DCF 6.7), especially given the unfinished profitability turnaround.
Digital Workforce
Digital Workforce is a service provider that specializes in process automation services on an industrial scale. The company's service offering covers the entire life cycle of intelligent automation: design and consulting, development and deployment, cloud-based platform, support and maintenance, and further development. The company offers services and solutions to a wide range of customers in various industries, including finance, healthcare, industry, logistics, and various public actors.
Read more on company pageKey Estimate Figures2023-08-23
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 25.5 | 26.1 | 28.9 |
growth-% | 13.90 % | 2.57 % | 10.43 % |
EBIT (adj.) | -1.3 | 0.5 | 2.1 |
EBIT-% (adj.) | -4.99 % | 2.08 % | 7.37 % |
EPS (adj.) | -0.15 | 0.05 | 0.17 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | - | 67.83 | 21.86 |
EV/EBITDA | - | 46.66 | 10.39 |