ALTIA H1´24 Results
Analysis date: April 28, 2023.
Price return since analysis date: +38% (-6.93% after results).
Disclaimer:
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This report is not a BUY or SELL recommendation.
At the current date, I own Altia shares, representing around 4.5% of my stock portfolio.
Company Overview
Altia Consultores S.A. is a Spain-based company primarily engaged in the provision of information technology (IT) services. The Company's activities are divided into seven business areas:
The Company cooperates with a number of entities, such as IBM, McAfee, Hewlett-Packard (HP), Hitachi Data Systems, Oracle and Microsoft. It is a subsidiary of Boxleo Tic SL.
To know more: Altia
Q3´24 Results.
Revenue +11% YoY.
EBITDA margin 9.2% (10.8%).
EBIT margin 7.72% (9.20%).
Net margin 5.5% (6.3%).
Salaries and wages 60.3% of revenue (59%).
Net debt EUR 3 mm. (10 mm).
Net debt-to-EBITDA 0.3x (0.8x).
EBITDA, for its part, has presented a drop of -5.8% in absolute terms compared to the period 1H2023, with a margin of 9.2% compared to 10.8% in the previous period, due to an increase in personnel, necessary for the continuity of the activity and the implementation of the Group's growth plans, and, to a lesser extent, by higher hardware sales, which are systematically accompanied by minor margins.
In terms of Net Profit, the figure has decreased by -3.3% compared to 1H2023 with a net margin of 5.5% compared to the 6.3% obtained in the same period of the previous year and the 7.3% foreseen in the Plan of Business 2023-2024.
Outsourcing continues to be the main line of business and the most stable during the first half of the year, representing 56.3% of the Group's total sales. So far this year this business has grown by +14.7%, compared to the previous year, due to the greater demand for maintenance services, exploitation and operational management of applications.
Altia stock is trading around 13x EV/EBITDA, vs. 12x of IT sector.
Under a basis scenario:
Revenue 2028 EUR 484 mm.
EBITDA Margin 9%
EBITDA 2028 EUR 44 mm.
Sector EV/EBITDA around 12x.
Upside 65% what means an annual return around of 10%.
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