DATAGROUP

DB: D6H

€492.6m market cap

€59 last close

DATAGROUP is a full IT outsourcing provider, focused on the German Mittelstand market. The company offers the full range of IT services on a modular basis, through its CORBOX ‘cloud-enabling platform’. Services include service desk, end-user services, data centre services, application management and SAP services.

Investment summary

DATAGROUP’s business model is relatively resilient to the COVID-19 crisis with a recurring revenue base of over 75%, mostly from its service-as-a-product contracts with German SMEs. In its reported H120 results to April 2020, the company announced organic revenue growth of 4%. COVID-19 has affected the acquisition of new projects and the integration of recently acquired companies, which prompted DATAGROUP to withdraw guidance in April. However, as mentioned during the results call, management does not expect a year-on-year decrease in EBITDA in FY20. Trading at 30.8x FY20e P/E and 22.9x FY21e P/E on consensus estimates, DATAGROUP is trading at a premium to peers.

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Sector
TMT
Share price graph
Price performance
%
1m
3m
12m
Actual 28.3 25.0 (4.8)
Relative* 21.2 16.4 (8.5)
52-week high/low €70.6/€38.9
*% relative to local index
Key management
Max Schaber CEO