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

Recurring revenue grew by 48% reflecting an ongoing shift to SaaS and the acquisition of Elaxy BS&S. However, due to some uncertainties over the timing of new contracts and the magnitude of the shift to SaaS, management has reduced its FY19 EBITDA guidance and deferred its long-term projections until later in the year. We have cut our EBITDA forecasts by 25% in FY20. Nevertheless, the digital banking industry dynamics remain attractive and pure-play CREALOGIX has a strong pipeline. In our view, CREALOGIX is uniquely positioned in this industry and is 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 software that enables digital banking for “the digital bank of tomorrow”. 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 their clients. The group’s products are front-end solutions that integrate with customers’ back-end systems. The technology has won many awards, including three consecutive awards at FinovateEurope in London – this year CREALOGIX TimeWarp was voted a “Best of Show” product. In December, Forrester named CREALOGIX a leader for Digital Banking Engagement Platforms.

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