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 transition from licence fees to a SaaS subscription model. We are in the process of updating our forecasts following the FY19 results on 17 September, which reported a 17% increase in revenues to CHF101.9m (5% below our forecast of CHF107.3m). EBITDA fell to CHF1.9m (vs our forecast of CHF7.0m), markedly down on FY18 due to the SaaS transition. As expected, the company’s transition will drag on margins in FY19/20, but should lead to double-digit EBITDA margins from FY21 onwards. CREALOGIX is uniquely positioned and in our view remains an attractive play on digital banking.

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 eg the ‘Best of Show’ award at FinovateEurope for the last three years in a row.

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
Daniel Bader CFO