Classification of NuWays AG to q.beyond AG

Company Name:	q.beyond AG
ISIN:	DE0005137004
Reason for the research:	Update
Recommendation:	BUY
from:	13.05.2025
Target price:	EUR 1.30
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Q1 in line as profitability improves further

Yesterday, QBY released a solid set of Q1 results, showing steady implied sales growth as well as margin and cash generation expansion. In detail:

Q1 reported sales decreased by 1.5% yoy to € 46.6m (eNuW: € 46.5m). Mind you, that QBY performed an accounting change this year, resulting in lower reported sales, as the company only reports the profits from certain customer relationships in accordance with IFRS 15. Taking this into account, sales increased yoy by 2% according to management. In contrast to recent quarters, this was predominantly driven by the Consulting segment, which even grew 4.2% in reported sales to € 14.8m. More importantly though the segment’s gross margin was increased by 5.1pp yoy to 13.5%, which was mainly caused by an increased near- and off-shoring ratio of 16% (+2pp vs FY24), a better utilization as well as a generally increased sales focus on consulting and development. As the Managed Services gross margin also slightly improved to 21.5% (+0.5pp yoy), overall gross margin improved by 1.8pp to 19.3% (€ 8.9m gross profit).

Against this backdrop Q1 EBITDA increased disproportionately by 16.7% to € 2.3m (eNuW: € 2.5m), implying a 5% margin (+0.8pp yoy). This was even negatively impacted by a € 0.3m one-off in connection with a customer insolvency, which is largely explaining the gap to our estimate. Overall, the improved gross margin should have been the main reason for the EBITDA margin expansion.

The company was also able to convert 78% of EBITDA into FCF, resulting in a € 1.8m FCF (+33.5% yoy). With this, net cash per Q1 amounted to € 28.3m (incl. leases), providing the company with a comfortable M&A war chest. Here, we expect at least one deal this year, which should either increase the company’s public sector exposure (e.g. health care, energy) or allow for regional expansion.

On the back of the strong release, management also confirmed the FY25 guidance of € 184-190m sales (eNuW: € 190m), € 12-15m EBITDA (eNuW: € 14.7m) as well as positive net income (eNuW: € 1.5m). In our view, Q1 should serve investors with confidence, that QBY is able to deliver on the outlook and might even achieve the upper end of it. Mind you, that Q4 is the seasonally strongest quarter of the company.

Reiterate BUY with an unchanged € 1.30 PT based on DCF.

You can download the research here: http://www.more-ir.de/d/32570.pdf
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
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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.
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