Carnegie Investment Bank
eEducation Albert
Date Title Alternative
2024-05-14 Another challenging quarter Download | Show Close
2023-11-24 Steps towards profitability Show Close
2023-10-04 Change in revenues not reflected in valuation Show Close
2023-08-24 Impressive B2B revenues Show Close
2023-05-30 Healthy cash flows and steps towards profitability Show Close
Research | 30 May 2023 | eEducation Albert

Healthy cash flows and steps towards profitability

 

Progressing towards profitability

Net sales in Q1 came in at SEK 47.5m, representing growth of 93% y/y, of which 15 pp was organic. This was in line with what is needed to reach half-year estimates. ARR at the end of the quarter was SEK 213.2m. Growth was 68% y/y, with 16 pp of this being organic. EBITA for Q1 was SEK -10.2m, with extraordinary items related to acquisitions of SEK -3.1m in the quarter. For the same period last year, EBITA was SEK -22.4m. The improvement can be traced back to excellent cost control.

Reduced revenue volatility should be expected

Albert targets turnover of SEK 500m by 2025. We believe this should be the basis for both estimates and valuation. We consider the acquisitions being finalised in early 2023 is a major step along the path towards this goal. In our view, Albert should see a revaluation in the wake of these acquisitions thanks to a much greater proportion of B2B revenues than before. These are less volatile than their B2C counterparts, justifying a higher valuation.

 

Valuation not reflected in share price

As the company was clear in the report that it prioritises profitable growth in the future, we lower our estimates for marketing costs in the coming years. This leads us to reduce our sales estimates by an average of 7.8% for 2024– 2025. Given the increased focus on profitability, we lift our EBIT estimates by SEK 7.4m for 2023, SEK 2.8m for 2024, and SEK 5.8m for 2025. We expect Albert to achieve positive EBITA results in H2 2024. As we base our valuation on EV/Sales multiples, we thus reduce our fair value to SEK 47–50 (52–54). Albert is today valued below book equity of SEK 274m and about 2x cash. We do not see this reflecting the company’s solid operating development as it progresses towards its financial targets.

 

Download (EN)
2023-04-21 Reduced revenue volatility not reflected in valuation Show Close
2023-03-07 Acquisitions push company closer to goal Show Close
2022-11-03 Big stride towards financial targets Show Close
2022-07-19 Strong growth during the quarter Show Close
2022-03-17 A European market leader Show Close

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