New Risk • Dec 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hungarian stocks, typically moving 6.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 98% Cash payout ratio: 131% Minor Risks Share price has been volatile over the past 3 months (6.7% average weekly change). Market cap is less than US$100m (Ft9.90b market cap, or US$25.2m). Buy Or Sell Opportunity • Nov 25
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to Ft1,600. The fair value is estimated to be Ft2,004, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 16%. Valuation Update With 7 Day Price Move • Nov 14
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to Ft1,700, the stock trades at a trailing P/E ratio of 9x. Average trailing P/E is 28x in the Software industry in Europe. Total returns to shareholders of 29% over the past three years. Reported Earnings • Apr 22
Full year 2023 earnings released: EPS: Ft181 (vs Ft151 in FY 2022) Full year 2023 results: EPS: Ft181 (up from Ft151 in FY 2022). Revenue: Ft3.05b (up 19% from FY 2022). Net income: Ft1.09b (up 20% from FY 2022). Profit margin: 36% (in line with FY 2022). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. New Risk • Mar 05
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.6% average weekly change). Market cap is less than US$100m (Ft11.6b market cap, or US$31.8m). Buying Opportunity • Oct 20
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 3.2%. The fair value is estimated to be Ft2,314, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.3% over the last 3 years. Earnings per share has grown by 17%. Buying Opportunity • Oct 04
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be Ft2,301, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.3% over the last 3 years. Earnings per share has grown by 17%. Buying Opportunity • Sep 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.7%. The fair value is estimated to be Ft2,295, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.3% over the last 3 years. Earnings per share has grown by 17%. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to Ft1,840, the stock trades at a trailing P/E ratio of 13.5x. Average trailing P/E is 31x in the Software industry in Europe. Total returns to shareholders of 26% over the past three years. Valuation Update With 7 Day Price Move • Feb 27
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to Ft2,580, the stock trades at a trailing P/E ratio of 18.9x. Average trailing P/E is 31x in the Software industry in Europe. Total returns to shareholders of 40% over the past three years. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to Ft2,100, the stock trades at a trailing P/E ratio of 15.4x. Average trailing P/E is 31x in the Software industry in Europe. Total loss to shareholders of 11% over the past three years. Upcoming Dividend • May 13
Upcoming dividend of Ft132 per share Eligible shareholders must have bought the stock before 20 May 2022. Payment date: 30 May 2022. Trailing yield: 5.5%. Within top quartile of Hungarian dividend payers (4.9%). Higher than average of industry peers (1.6%). Is New 90 Day High Low • Dec 23
New 90-day high: Ft2,200 The company is up 35% from its price of Ft1,625 on 24 September 2020. The Hungarian market is up 28% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is down 9.0% over the same period. Valuation Update With 7 Day Price Move • Dec 18
Investor sentiment improved over the past week After last week's 18% share price gain to Ft2,190, the stock is trading at a trailing P/E ratio of 21.1x, up from the previous P/E ratio of 17.9x. This compares to an average P/E of 37x in the Software industry in Europe. Total returns to shareholders over the past three years are 184%. Is New 90 Day High Low • Dec 02
New 90-day high: Ft1,700 The company is up 11% from its price of Ft1,525 on 03 September 2020. The Hungarian market is up 13% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Software industry, which is down 18% over the same period. Valuation Update With 7 Day Price Move • Nov 24
Market bids up stock over the past week After last week's 19% share price gain to Ft1,690, the stock is trading at a trailing P/E ratio of 16.3x, up from the previous P/E ratio of 13.7x. This compares to an average P/E of 35x in the Software industry in Europe. Total returns to shareholders over the past three years are 131%. Valuation Update With 7 Day Price Move • Nov 19
Market bids up stock over the past week After last week's 20% share price gain to Ft1,680, the stock is trading at a trailing P/E ratio of 16.2x, up from the previous P/E ratio of 13.5x. This compares to an average P/E of 32x in the Software industry in Europe. Total returns to shareholders over the past three years are 131%. Is New 90 Day High Low • Oct 14
New 90-day low: Ft1,420 The company is down 14% from its price of Ft1,660 on 16 July 2020. The Hungarian market is down 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 1.0% over the same period. Is New 90 Day High Low • Sep 22
New 90-day low: Ft1,430 The company is down 8.0% from its price of Ft1,550 on 24 June 2020. The Hungarian market is down 12% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Software industry, which is up 7.0% over the same period.