Efecte: Low valuation leaves room for the challenges of a weakening market
The economic outlook has weakened significantly since the summer, which we expect to increase uncertainty among Efecte's customer base and increase the risk of a slowdown in customer acquisition. We updated our growth estimates to a more negative scenario, where the company's organic growth relies more heavily on growth in existing accounts and new customer acquisition would slow down significantly in 2023. With updated estimates, we believe that the downside valuation of the stock (2023e EV/S 2.0x) is still low given the company's growth trajectory and outlook and leaves ample room for near-term growth challenges.
Efecte
Efecte is a software company. The company develops cloud-based software for services and identity management to digitize and automate operations in organizations and the production of services. The company was founded in 1998. The company's headquarters are in Espoo and the company has offices in Sweden and Germany in addition to Finland.
Read more on company pageKey Estimate Figures2022-10-18
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 17.8 | 21.2 | 24.5 |
growth-% | 19.32 % | 19.28 % | 15.53 % |
EBIT (adj.) | 0.4 | 0.1 | 0.4 |
EBIT-% (adj.) | 2.45 % | 0.28 % | 1.57 % |
EPS (adj.) | 0.07 | -0.01 | 0.04 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | 192.66 | - | 385.68 |
EV/EBITDA | 80.07 | 235.37 | 93.97 |