Emma Villas S.p.A.

27/09/2023

On 27th September 2023 Emma Villas S.p.A. announces that it has received from Borsa Italiana the order for the admission of the Company’s Ordinary Shares and Warrants on “Euronext Growth Milan Pro”, a multilateral negotiations system organized and managed by Borsa Italiana. Negotiations began on 29th September 2023.

The total equivalent of the resources collected through the placement is equal to Euro 3,5 millions.

The enterprise Emma Villas è un’azienda leader in Italia nel settore del vacation rental (affitti brevi di ville e tenute di pregio).

Last research Emma Villas S.p.A.

UPDATE

The Value of Production in 1H25A amounted to €9.00 million, up 11.2% compared to €8.10 million in 1H24A. In 1H25A, Adjusted EBITDA stood at €-3.30 million (compared to €-4.17 million in 1H24A), while the EBITDA Margin improved to -36.7% from -51.5% in the previous period. EBIT, after amortization and depreciation of €0.62 million, amounted to €-4.63 million in 1H25A, slightly improving from €-4.67 million in 1H24A. Net Income was €-3.60 million, compared to €-3.59 million recorded in the first half of 2024. From a balance sheet perspective, the Net Financial Position (NFP) was cash positive at €11.90 million, improving from a net debt position of €1.01 million as of December 31, 2024.

In light of the results published in the 1H25A Half-Year Report, we have revised our estimates for both the current year and the coming years. Specifically, we now estimate a FY25E Value of Production of €39.70 million and an EBITDA of €1.70 million, corresponding to a margin of 4.3%. For the following years, we expect the Value of Production to increase to €45.50 million by FY27E (CAGR 24A–27E: 9.5%), with EBITDA reaching €4.35 million (corresponding to a margin of 9.6%), showing strong growth compared to €-0.74 million in FY24A (EBITDA margin: -2.1%). From a balance sheet perspective, we expect an improvement in the Net Financial Position (NFP), which according to our estimates will move from a net debt of €1.01 million in FY24A to a net debt of €0.24 million in FY25E. We conducted our valuation of the equity value of Emma Villas based on the DCF method and on 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 €23.0 million. Using market multiples, the equity value of Emma Villas was calculated as €17.4 million (including a 25.0% discount). The average equity value is approximately €20.9 million. The target price is € 2.90, with a BUY rating and MEDIUM risk.