| The Group closed the year with revenues of € 4.45 million, a very strong increase compared to the 2021 year-end figure, which amounted to € 1.35 million. EBITDA for the period amounted to € 0.95 million, substantially breaking even with the figure of the previous year, and leading to a margin on the value of production of 19.7% (versus 0.7% in FY21A). EBIT, after amortization and depreciation of € 0.93 million, came in at € 0.03 million, essentially breaking even, with an EBIT margin of 0.5%. On the other hand, Net Income was negative, equal to € -0.03 million (€ -0.34 million in FY21A). 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 € 20.00 million, and an EBITDA equal to € 15.30 million, corresponding to a margin of 76.5%. In the following years, we expect the value of production to rise to € 45.00 million (CAGR 22Y-25E: 110.3%) in FY25E, with EBITDA equal to € 37.80 million (corresponding to a margin of 84.0%), up from € 0.95 million in FY22A (corresponding to an EBITDA Margin of 19.7%). We conducted our valuation of the equity value of ISCC Fintech based on the DCF method and the Excess Return method. The DCF method (including, for prudential purposes, a specific risk of 2.5% in the calculation of the WACC) returned an equity value of € 151.8 million. Using Excess Return, the equity value of ISCC Fintech was calculated as € 106.3 million. The result is an average equity value of approximately € 129.0 million. The target price is € 10.00, BUY rating, and MEDIUM risk. |