Innofactor: Getting better, but it’s not time yet
Net sales grew strongly in Q3, especially organically. However, the increase in billing rates and assumed operational leverage was not fully visible in profitability. Although, the profit level and trend removed the most significant concerns about the profit warning we assumed earlier. Orders received remained at a good level, which gives a good basis for the business. We expect moderate earnings growth from Innofactor in the coming years. Our outlook for the stock is unchanged (2022e P/E of 11x and EV/EBIT of 10x), and not strong enough to have a positive view on the stock given the uncertainty of the company's earnings growth and the market.
Innofactor
Innofactor operates in the IT sector. The company is focused on offering services in digitization and cloud-based solutions. Examples of business areas include sales, marketing and communication, business intelligence, and CRM (Customer Relationship Management). The largest presence is found in the Nordic market and customers consist of small and medium-sized corporate customers. The head office is located in Espoo.
Read more on company pageKey Estimate Figures2022-10-25
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 66.4 | 71.6 | 76.8 |
growth-% | 0.30 % | 7.87 % | 7.26 % |
EBIT (adj.) | 4.4 | 4.8 | 5.1 |
EBIT-% (adj.) | 6.64 % | 6.64 % | 6.67 % |
EPS (adj.) | 0.07 | 0.09 | 0.10 |
Dividend | 0.08 | 0.05 | 0.06 |
Dividend % | 5.28 % | 3.88 % | 4.65 % |
P/E (adj.) | 23.23 | 14.06 | 12.49 |
EV/EBITDA | 6.26 | 7.34 | 6.58 |