| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 30.11 | 34 |
| Intrinsic value (DCF) | 7.46 | -67 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Allgeier SE (AEIN.DE) is a leading German IT solutions and software services provider, headquartered in Munich. Founded in 1977, the company operates through two key segments: Enterprise IT and mgm technology partners. Allgeier offers a comprehensive suite of IT services, including personnel services, software lifecycle management, business intelligence, cloud solutions, IT security, and enterprise content management. The company serves diverse industries such as banking, insurance, healthcare, logistics, media, and telecommunications, as well as the public sector. With a strong focus on digital transformation, Allgeier provides end-to-end IT consulting, implementation, and managed services, leveraging near-shore and offshore delivery models for cost efficiency. The company’s expertise in ERP, big data, and IT infrastructure positions it as a key player in Germany’s competitive IT services market. Allgeier’s commitment to innovation and customer-centric solutions makes it a trusted partner for enterprises navigating complex IT challenges.
Allgeier SE presents a mixed investment profile. The company operates in the growing IT services sector, benefiting from increasing demand for digital transformation and cloud solutions. However, its modest market cap (~€200M) and beta of 1.29 indicate higher volatility relative to the market. Revenue of €403M (FY 2024) and net income of €7.3M reflect steady but not exceptional profitability, with diluted EPS of €0.64. The company maintains a solid operating cash flow of €37.8M, though its total debt of €185.7M raises leverage concerns. A dividend yield of ~0.5% offers limited income appeal. Investors should weigh Allgeier’s niche expertise in German IT services against competition from larger global players and its exposure to economic cycles in its core markets.
Allgeier SE competes in Germany’s fragmented IT services market, where differentiation hinges on specialized expertise and customer relationships. Its competitive advantage lies in its dual-segment approach: Enterprise IT provides broad IT staffing and consulting, while mgm technology partners focuses on high-value software engineering and digital solutions. This structure allows Allgeier to serve both cost-sensitive clients and those requiring premium technical expertise. The company’s deep industry knowledge in sectors like finance and healthcare strengthens its positioning against generic IT service providers. However, Allgeier lacks the scale of global IT giants, limiting its ability to compete on large multinational contracts. Its near-shore delivery capabilities (e.g., Eastern Europe) provide cost advantages but face competition from lower-cost offshore rivals in India and Asia. The company’s reliance on the German market (~90% of revenue) is both a strength (local expertise) and a risk (limited diversification). Allgeier’s partnerships with software vendors (e.g., SAP, Microsoft) enhance its solution portfolio but expose it to vendor-driven pricing pressures. To sustain growth, the company must expand its higher-margin digital transformation services while managing legacy IT service margins.