| In its Consolidated Financial Statements as at December 31, 2022, SolidWorld Group reported net sales revenues of € 57.75 million, up 4.8% compared to the 2021 year-end pro-forma result (equal to € 55.08 million). Value of production stands at € 60.76 million. EBITDA for the period amounted to € 4.02 million, a slight increase compared to the FY21A figure of € 3.82 million, for an EBITDA Margin of 6.6%. Considering extraordinary income and expenses of € 0.08 million, Adjusted EBITDA came in at € 4.10 million. EBIT, after depreciation, amortization and write-downs of € 2.62 million, was equal to € 1.40 million, with an EBIT Margin of 2.3%, Net Income was also positive, amounting to € 0.11 million, up on the negative FY21A figure of € -0.13 million. In light of the results published in the annual report for FY22A, we have adjusted our estimates for both the current year and the coming years. In particular, we estimate an FY23E Value of Production equal to € 63.70 million, and an EBITDA equal to € 6.00 million, corresponding to a margin of 9.4%. In the following years, we expect the Value of Production to rise to € 80.00 million (CAGR FY22A – FY25E: 9.6%) in FY25E, with EBITDA equal to € 9.20 million (corresponding to a margin of 11.5%), up from € 4.02 million in FY22A (corresponding to an EBITDA Margin of 6.6%). We conducted our valuation of the equity value of SolidWorld Group based on the DCF method and multiples of a sample of comparable companies. The DCF method (including, for prudential purposes, a specific risk of 2.5% in the calculation of the WACC) returned an equity value of € 126.8 million. Using market multiples, the equity value of SolidWorldGroup was € 86.5 million (including a 25,0% discount). The result is an average equity value of approximately € 106.7 million. The target price is € 9.15, BUY rating and MEDIUM risk. |