| Edison Investment Research Limited TIE Kinetix (TIE): Initiation - Pure SaaS player in e-invoicing 23-March-2022 / 07:00 GMT/BST
London, UK, 23 March 2022
TIE Kinetix (TIE): Initiation - Pure SaaS player in e-invoicing TIE Kinetix is focused on 100% digitalisation of document streams in the supply chain. FY22 will be a transformative year as it is heavily investing in accelerating growth and improving margins in the next few years. While this will put short-term pressure on profitability, the company has set targets to accelerate organic growth in software-as-a-service (SaaS) revenues to more than 20% per year by FY25, with an EBITDA margin of up to 20%. Now fully focused on SaaS, recurring revenues are expected to increase from more than 80% to more than 90% over the next few years, further improving the predictability of its results.
TIE Kinetix is entirely focused on SaaS solutions, which should increase predictable recurring revenues over the next few years and in turn underpin its valuation. The company is trading on EV/sales of 1.9x in FY22e compared to an average of 3.1x for European peers and 9.2x for US peers. Our DCF points to a fair value of €26 per share, ie 36% upside to the current share price. Click here to view the full report or here to sign up to receive research as it is published.
All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Johan van den Hooven +44 (0)20 3077 5700 tech@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. |
1308577 23-March-2022
