Buy Or Sell Opportunity • Jun 10
Now 43% overvalued after recent price rise Over the last 90 days, the stock has risen 34% to €0.73. The fair value is estimated to be €0.51, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 22% over the last 3 years. Meanwhile, the company became loss making. For the next 3 years, revenue is forecast to grow by 5.3% per annum. Earnings are also forecast to grow by 54% per annum over the same time period. New Risk • May 22
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 3 years. Trailing 12-month net loss: €2.6m Forecast net loss in 3 years: €800k This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (44% average weekly change). Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (€800k net loss in 3 years). Market cap is less than US$100m (€38.1m market cap, or US$44.2m). Breakeven Date Change • May 20
Forecast breakeven date pushed back to 2027 The 3 analysts covering Prodways Group previously expected the company to break even in 2026. New consensus forecast suggests losses will reduce by 95% to 2026. The company is expected to make a profit of €300.0k in 2027. Average annual earnings growth of 94% is required to achieve expected profit on schedule. Announcement • May 14
Prodways Group SA, Annual General Meeting, Jun 17, 2026 Prodways Group SA, Annual General Meeting, Jun 17, 2026. Location: 10 bis rue du quatre septembre, paris France Announcement • May 20
Prodways Group SA, Annual General Meeting, Jun 25, 2025 Prodways Group SA, Annual General Meeting, Jun 25, 2025. Location: les locaux du lcl, 19 boulevard des italiens, paris France Announcement • Dec 21
Prodways Group SA to Report Fiscal Year 2024 Results on Mar 13, 2025 Prodways Group SA announced that they will report fiscal year 2024 results After-Market on Mar 13, 2025 Buy Or Sell Opportunity • Jul 08
Now 23% overvalued Over the last 90 days, the stock has fallen 15% to €0.61. The fair value is estimated to be €0.49, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Meanwhile, the company became loss making. Announcement • Apr 06
Prodways Group SA to Report Q1, 2024 Results on Apr 18, 2024 Prodways Group SA announced that they will report Q1, 2024 results on Apr 18, 2024 Reported Earnings • Mar 20
Full year 2023 earnings released: €0.27 loss per share (vs €0.029 profit in FY 2022) Full year 2023 results: €0.27 loss per share (down from €0.029 profit in FY 2022). Revenue: €75.9m (down 7.9% from FY 2022). Net loss: €14.0m (down €15.5m from profit in FY 2022). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 36% per year, which means it is significantly lagging earnings. Buying Opportunity • Nov 15
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 52%. The fair value is estimated to be €1.15, 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. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 8.8% per annum. Earnings is also forecast to grow by 27% per annum over the same time period. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to €1.10, the stock trades at a forward P/E ratio of 41x. Average forward P/E is 10x in the Machinery industry in Germany. Total loss to shareholders of 70% over the past year. Simply Wall St's valuation model estimates the intrinsic value at €1.27 per share. Reported Earnings • Sep 24
First half 2023 earnings released: EPS: €0.069 (vs €0.068 in 1H 2022) First half 2023 results: EPS: €0.069 (up from €0.068 in 1H 2022). Revenue: €43.5m (up 2.2% from 1H 2022). Net income: €3.57m (up 2.8% from 1H 2022). Profit margin: 8.2% (up from 8.1% in 1H 2022). Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Machinery industry in Germany. Buying Opportunity • Jul 21
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 27%. The fair value is estimated to be €2.12, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.7% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 9.4% per annum. Earnings is also forecast to grow by 25% per annum over the same time period. Buying Opportunity • Jun 17
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 37%. The fair value is estimated to be €2.07, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.7% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 9.4% per annum. Earnings is also forecast to grow by 25% per annum over the same time period. New Risk • Jun 16
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: €80.9m (US$88.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 29
Full year 2022 earnings released: EPS: €0.029 (vs €0.012 in FY 2021) Full year 2022 results: EPS: €0.029 (up from €0.012 in FY 2021). Revenue: €82.5m (up 14% from FY 2021). Net income: €1.49m (up 138% from FY 2021). Profit margin: 1.8% (up from 0.9% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Machinery industry in Germany. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to €2.62, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 15x in the Machinery industry in Germany. Total returns to shareholders of 14% over the past year. Simply Wall St's valuation model estimates the intrinsic value at €2.03 per share. Board Change • Feb 14
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 8 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Michele Lesieur was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Nov 21
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 8 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Michele Lesieur was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Sep 15
First half 2022 earnings released: EPS: €0.068 (vs €0.006 loss in 1H 2021) First half 2022 results: EPS: €0.068 (up from €0.006 loss in 1H 2021). Revenue: €43.7m (up 26% from 1H 2021). Net income: €3.47m (up €3.79m from 1H 2021). Profit margin: 7.9% (up from net loss in 1H 2021). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in Germany. Board Change • May 02
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Director Michele Lesieur was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 19
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: €0.012 (up from €0.27 loss in FY 2020). Revenue: €74.1m (up 27% from FY 2020). Net income: €626.0k (up €14.6m from FY 2020). Profit margin: 0.8% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 7.9%, compared to a 9.7% growth forecast for the industry in Germany. Breakeven Date Change • Dec 31
Forecast breakeven date pushed back to 2022 The 4 analysts covering Prodways Group previously expected the company to break even in 2021. New consensus forecast suggests the company will make a profit of €4.01m in 2022. Average annual earnings growth of 76% is required to achieve expected profit on schedule. Breakeven Date Change • Sep 23
Forecast to breakeven in 2022 The 2 analysts covering Prodways Group expect the company to break even for the first time. New consensus forecast suggests the company will make a profit of €3.20m in 2022. Average annual earnings growth of 103% is required to achieve expected profit on schedule. Reported Earnings • Sep 20
First half 2021 earnings released: €0.006 loss per share (vs €0.17 loss in 1H 2020) The company reported a solid first half result with reduced losses, improved revenues and improved control over expenses. First half 2021 results: Revenue: €34.8m (up 27% from 1H 2020). Net loss: €325.0k (loss narrowed 96% from 1H 2020). Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Breakeven Date Change • Jul 07
Forecast to breakeven in 2023 The 2 analysts covering Prodways Group expect the company to break even for the first time. New consensus forecast suggests losses will reduce by 63% per year to 2022. The company is expected to make a profit of €500.0k in 2023. Average annual earnings growth of 97% is required to achieve expected profit on schedule.