Tecnotree: Currencies cause pain
Tecnotree's Q4 results exceeded our forecast at the EBIT level, but exchange rate movements had a significant impact on the bottom lines of the income statement. Cash flow improved as expected towards the end of the year, but free cash flow remained negative. The company's internal focus is strongly on improving cash flow, but with cash still burning at current valuation (2024e EV/OFCF 14x), we continue to wait for evidence of an improved cash flow profile.
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 Figures23.02.
2023 | 24e | 25e | |
---|---|---|---|
Revenue | 78.4 | 82.3 | 87.1 |
growth-% | 9.50 % | 4.98 % | 5.83 % |
EBIT (adj.) | 23.8 | 25.9 | 26.0 |
EBIT-% (adj.) | 30.38 % | 31.45 % | 29.86 % |
EPS (adj.) | 0.04 | 0.04 | 0.05 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | 9.69 | 116.95 | 96.42 |
EV/EBITDA | 4.10 | 49.83 | 44.45 |