| In the Consolidated Financial Statements as of December 31, 2023, SolidWorld Group recorded net sales revenues of € 61.98 million, up 7.3% on the result at the end of 2022 (equal to € 57.75 million), mainly driven by its industrial business activities, responsible for 95.6% of overall revenues in 2023. The value of production went from € 60.76 million in FY22A to € 66.56 million in 2023, marking a growth of 9.5%. EBITDA as of December 31, 2023, amounted to € 3.40 million, down on the figure for the previous year of € 4.02 million, with an EBITDA margin on the value of production of 5.5%. The EBIT for the period, after depreciation and amortization of € 3.98 million, came in at € -0.58 million, with an EBIT margin of -0.9%, down from 1.40% in FY22A. Net Income for the Group in 2023 therefore went from € 0.11 million in 2022 to € -1.88 million in the financial year just ended. In light of the results published in the annual report for FY23A, we have adjusted our estimates for both the current year and the coming years. In particular, we now estimate an FY24E value of production of € 71.00 million, and an EBITDA of € 5.00 million, corresponding to a margin of 7.5%. In the following years, we expect the value of production to reach € 95.00 million (CAGR FY23A – FY26E: 15.7%) in FY26E, with EBITDA equal to € 9.00 million (corresponding to a margin of 10.0%), up from € 3.40 million in FY23A (corresponding to an EBITDA margin of 5.5%). We conducted our valuation of the equity value of SolidWorld Group on the basis of 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 € 106,7 million. Using market multiples, the equity value of SolidWorld Group was estimated at € 81,4 mln million (including a 25% discount). This gives an average equity value of approximately € 94,0 million. The target price is € 6.00, with a BUY rating and MEDIUM risk. |