| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.20 | 76 |
| Intrinsic value (DCF) | 11.40 | -23 |
| Graham-Dodd Method | 4.70 | -68 |
| Graham Formula | 10.60 | -29 |
Fabasoft AG is a leading European software and cloud services provider specializing in enterprise content management (ECM), workflow automation, and AI-driven knowledge solutions. Headquartered in Linz, Austria, the company serves public and private sector clients across Austria, Germany, Switzerland, and internationally. Its flagship products include the Fabasoft eGov-Suite for public sector digitalization, Fabasoft Folio for on-premises ECM, and Mindbreeze InSpire for AI-powered knowledge management. The company’s cloud-based offerings, such as Fabasoft Business Process Cloud and Fabasoft Contracts, enable organizations to streamline cross-company workflows and contract lifecycle management. With a strong focus on compliance and security, Fabasoft also provides tools like Fabasoft Secomo for secure digital signatures and data protection. Founded in 1988, the company has established itself as a trusted partner for digital transformation, particularly in regulated industries. Its diversified product portfolio and recurring revenue model position it well in the growing €50B+ European enterprise software market.
Fabasoft presents a niche investment opportunity in the European enterprise software sector, with a focus on high-compliance verticals like government and regulated industries. The company’s €80.95M revenue and €9.07M net income (2024) demonstrate profitability, supported by positive operating cash flow of €19.48M. Its 1.056 beta suggests moderate volatility relative to the market. Key strengths include specialized product offerings with high switching costs and a growing cloud revenue stream. However, the small market cap (€172M) and limited international presence beyond DACH region create concentration risks. The 0.1 EUR dividend (1.2% yield) provides modest income. Investors should weigh its strong public sector foothold against competition from larger global players and the capital intensity of R&D in AI/cloud segments.
Fabasoft competes in the mid-market ECM and government software segments with a differentiated focus on European compliance standards. Its competitive advantage stems from: 1) Deep public sector expertise, with eGov-Suite holding certifications for EU-wide government use, 2) Hybrid deployment flexibility (cloud/on-prem) appealing to regulated clients, and 3) Proprietary AI capabilities via Mindbreeze InSpire for unstructured data processing. The company’s vertical integration—from document capture (Approve) to publishing (Xpublisher)—creates cross-selling opportunities. However, it faces scaling challenges against global SaaS vendors in contract management and workflow automation. Pricing is likely premium due to specialized compliance features, which may limit growth in price-sensitive commercial segments. Its R&D spend (implied by €13.3M capex) focuses on AI/ML enhancements, but competes with vendors spending 3-5x more annually. The DACH-centric revenue base (estimated 80%+) provides stability but exposes to regional economic cycles. Partner networks with SAP/Oracle implementers help reach enterprise clients, though co-opetition exists with these platforms’ native ECM tools.