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Stock Analysis & Valuationaudius SE (3IT.DE)

Professional Stock Screener
Previous Close
13.10
Sector Valuation Confidence Level
Low
Valuation methodValue, Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Method1.15-91
Graham Formula10.09-23

Strategic Investment Analysis

Company Overview

audius SE is a Germany-based IT consulting and services company specializing in workplace design, data center management, development automation, and SharePoint solutions. Founded in 1991 and headquartered in Weinstadt, the company operates as a subsidiary of audius AG. audius SE provides comprehensive IT consulting, project management, and implementation services, including quality management, risk management, and process optimization. The company serves businesses across Germany, helping them optimize IT infrastructure and digital workflows. With a market capitalization of approximately €64.5 million, audius SE plays a key role in the European IT services sector, particularly in mid-market enterprise solutions. The company rebranded from IT Competence Group SE in 2020, reflecting its strategic focus on digital transformation and IT efficiency.

Investment Summary

audius SE presents a niche investment opportunity in the German IT consulting sector, with steady revenue growth (€78.2 million in FY 2023) and profitability (net income of €3.4 million). The company maintains a conservative financial structure, with manageable debt (€3.3 million) and solid cash reserves (€10 million). Its beta of 0.611 suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, the company operates in a highly competitive IT services landscape with limited international diversification. The dividend yield (€0.35 per share) provides income appeal, but growth prospects may be constrained by its regional focus and mid-market positioning. Investors should weigh its stable cash flows against potential scalability challenges.

Competitive Analysis

audius SE competes in Germany's fragmented IT consulting market, differentiating itself through specialized services in workplace modernization and SharePoint solutions. Its competitive advantage lies in deep regional expertise and long-term client relationships, evidenced by consistent profitability. However, the company lacks the scale of global IT consultancies, limiting its ability to compete for large multinational contracts. Its subsidiary structure under audius AG provides financial stability but may restrict operational agility. The firm’s focus on process optimization and risk management aligns well with German mid-market demand for compliance-driven IT solutions. While it maintains cost efficiency (positive operating cash flow of €2.8 million), its growth potential is tempered by high local competition and reliance on the DACH region. Capital expenditures (€-2.5 million) suggest moderate reinvestment in capabilities compared to larger peers.

Major Competitors

  • adesso SE (ADN1.DE): adesso SE is a larger German IT services provider (€1+ billion revenue) with broader European presence and stronger software development capabilities. It outperforms audius in scale and digital transformation projects but lacks audius’s focus on workplace optimization. Higher growth but with greater project risk exposure.
  • Software AG (SOW.DE): Software AG provides enterprise software solutions with global reach (€866 million revenue). It competes indirectly in IT consulting with stronger product IP but lacks audius’s hands-on implementation services for mid-market clients. More R&D-driven but with higher cost structure.
  • Cancom SE (COK.DE): Cancom is a major German IT infrastructure provider (€1.4 billion revenue) with stronger cloud and security offerings. It surpasses audius in technical breadth and public sector contracts but is less specialized in process optimization services. More geographically diversified across DACH.
  • Northgate Public Services (NTH1.DE): Focuses on public sector IT solutions with strong UK/German government contracts. Competes in SharePoint and workflow automation but lacks audius’s private sector SME focus. Stronger in compliance systems but less agile in implementation.
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