Intrinsic Value audius SE (3IT.DE)

• Previous Close: €13.10
• Intrinsic Value: n/a
• Upside potential: n/a%

Stock Valuation Context

Business Model And Market Position

audius SE operates in the competitive IT consulting and services sector in Germany, specializing in workplace design, data center management, and process optimization. The company differentiates itself through a comprehensive suite of IT solutions, including development, automation, and risk management services, catering to businesses seeking digital transformation. As a subsidiary of audius AG, it leverages group synergies to enhance its market reach and service depth. The German IT services market is highly fragmented, with audius SE positioning itself as a mid-tier player focusing on tailored, high-value consulting engagements. Its rebranding in 2020 reflects a strategic shift toward integrated IT solutions, aiming to strengthen client retention and cross-selling opportunities. The company’s expertise in SharePoint and quality management further solidifies its niche appeal in enterprise IT infrastructure.

Revenue Profitability And Efficiency

In FY 2023, audius SE reported revenue of €78.2 million, with net income of €3.4 million, translating to a diluted EPS of €0.70. Operating cash flow stood at €2.8 million, though capital expenditures of €2.5 million indicate ongoing investments in service capabilities. The company maintains a lean operational structure, with profitability metrics reflecting steady demand for its IT consulting offerings.

Earnings Power And Capital Efficiency

The company’s net income margin of approximately 4.4% underscores moderate earnings power in a competitive sector. Capital efficiency is balanced, with operating cash flow covering capex, though reinvestment needs limit free cash flow generation. The diluted EPS of €0.70 suggests adequate returns for equity holders relative to its market cap.

Balance Sheet And Financial Health

audius SE holds €10.0 million in cash and equivalents against €3.3 million in total debt, indicating a robust liquidity position. The low leverage ratio supports financial flexibility, with ample capacity to fund growth initiatives or weather cyclical downturns in IT spending.

Growth Trends And Dividend Policy

Revenue growth trends are undisclosed, but the dividend payout of €0.35 per share implies a yield of ~2.7% (based on current market cap), signaling a commitment to shareholder returns. The company’s focus on high-margin consulting services could drive future top-line expansion if demand for digital transformation persists.

Valuation And Market Expectations

With a market cap of €64.5 million and a beta of 0.61, audius SE trades at a modest valuation, reflecting its niche positioning and smaller scale. Investors likely price in limited growth upside, given the saturated German IT services market and the company’s mid-tier status.

Strategic Advantages And Outlook

audius SE benefits from its specialized IT consulting expertise and parent-company backing, though its outlook hinges on sustaining client relationships in a cost-sensitive environment. Strategic focus on automation and process optimization may unlock efficiencies, but macroeconomic headwinds could pressure discretionary IT spending.

Sources

Company filings, market data