Worldline
Note: This is a daily stock update and the information stands true as of 13/09/24, 09:00 CEST.
Company Update:
Worldline posted another profit warning (the 2nd this year). The company explains that the competition is increasing.
The company lowers its organic sales guidance to 1% vs 2-3% previously and its EBITDA target is cut to €1.1bn vs €1.13-1.17bn previously.
The FCF target is reduced to €200m vs 230m+ previously. The company also announced its CEO Gilles Grappinet was leaving as of Sept 30 and will be replaced by the Deputy CO on an interim basis
Expert Opinion:
The confidence on the group was already low and won’t improve. While valuation is indeed cheap (PE24 of 10.5x (before cuts) and PE 26 at 7x), I expect the momentum will remain weakish and there is no reason to buy the stock. There are other companies to play in the sector, which offer much better momentum and far better intrinsic qualities and even though they trade on significantly higher multiples (Adyen trades on 40x + multiples), I would tend to favor these rather than worldline.
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Company Update:
Worldline posted another profit warning (the 2nd this year). The company explains that the competition is increasing.
The company lowers its organic sales guidance to 1% vs 2-3% previously and its EBITDA target is cut to €1.1bn vs €1.13-1.17bn previously.
The FCF target is reduced to €200m vs 230m+ previously. The company also announced its CEO Gilles Grappinet was leaving as of Sept 30 and will be replaced by the Deputy CO on an interim basis
Expert Opinion:
The confidence on the group was already low and won’t improve. While valuation is indeed cheap (PE24 of 10.5x (before cuts) and PE 26 at 7x), I expect the momentum will remain weakish and there is no reason to buy the stock. There are other companies to play in the sector, which offer much better momentum and far better intrinsic qualities and even though they trade on significantly higher multiples (Adyen trades on 40x + multiples), I would tend to favor these rather than worldline.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach our to us at sales@alphavalue.eu
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