CREALOGIX Group

SW: CLXN

CHF136m market cap

CHF97.5 last close

CREALOGIX Group provides digital banking technology solutions to banks, wealth managers and other financial services companies. The company’s suite of solutions includes online and mobile banking, digital payments, digital learning and security.

Investment summary

CREALOGIX continues to move its business from being based on licence fees to increasingly a SaaS subscription model. This has a transitional drag on margins in FY19/20, but is expected to lead to double-digit EBITDA margins from FY21 onwards. FY19 revenues increased 17% to CHF101.9m (5% below Edison’s forecast of CHF107.3m), but FY19 EBITDA fell to CHF1.9m (vs Edison’s forecast of CHF7.0m), markedly down on FY18 due to the SaaS transition. In our view, CREALOGIX is uniquely positioned and remains an attractive play on digital banking. However, in light of the recent trading update we have suspended our forecasts pending the FY19 results on 17 September 2019.

Y/E Jun
Revenue (CHFm)
EBITDA (CHFm)
PBT (CHFm)
EPS (CHFc)
P/E (x)
P/CF (x)
2017A 74.9 7.3 5.0 259.00 37.6 10.6
2018A 87.1 7.0 5.0 239.00 40.8 35.4
2019E 107.3 7.0 3.5 166.53 58.5 19.3
2020E 115.4 11.0 8.1 416.02 23.4 11.7
Last updated on 26/09/2018
Industry outlook

CREALOGIX develops and implements front-end software that enables digital banking. The solutions are most often used by traditional banks to enable their journey to digitalisation, through the provision of a sophisticated, modern omni-channel offering to clients. CREALOGIX has multi-award winning technology, winning “Best of Show” at FinovateEurope.

Last updated on 26/09/2018
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (CHFm) 4.5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.5) (9.7) (42.3)
Relative* (3.2) (18.5) (46.5)
52-week high/low CHF100.0/CHF81.0
*% relative to local index
Key management
Bruno Richle Chairman
Thomas F. J. Avedik CEO
Philippe Wirth CFO