| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 32.52 | 111 |
| Intrinsic value (DCF) | 11.53 | -25 |
| Graham-Dodd Method | 5.38 | -65 |
| Graham Formula | 12.07 | -22 |
Fabasoft AG is a leading European software and cloud services provider specializing in enterprise content management (ECM), workflow automation, and digital transformation solutions for both public and private sectors. Headquartered in Linz, Austria, the company operates across Germany, Switzerland, and internationally, offering a comprehensive suite of products including Fabasoft eGov-Suite for public sector records management, Fabasoft Folio for on-premises ECM, and Mindbreeze InSpire for AI-driven knowledge management. With a strong focus on digitizing business processes, Fabasoft provides cloud-based solutions like Fabasoft Business Process Cloud and Fabasoft Contracts, enabling secure, cross-company collaboration. Founded in 1988, Fabasoft has established itself as a trusted partner for organizations seeking to enhance efficiency through digital workflows, compliance, and multi-channel publishing tools. The company’s innovative approach, including AI integration and low-code development environments, positions it as a key player in the European enterprise software market.
Fabasoft AG presents a niche investment opportunity in the European enterprise software sector, with a stable revenue base (€80.95M in FY 2024) and profitability (net income of €9.07M). The company’s focus on public sector digitization and cloud-based workflow automation provides resilience, though its small market cap (€171M) and moderate beta (1.056) suggest higher volatility. Positive operating cash flow (€19.48M) and a conservative dividend (€0.10/share) indicate financial stability, but growth may be constrained by competition from larger global players. Investors should weigh its regional strength against limited international scalability.
Fabasoft AG competes in the fragmented ECM and workflow automation market, differentiating itself through deep public sector expertise and a vertically integrated product suite. Its competitive advantages include: (1) **Regulatory compliance focus**, with eGov-Suite tailored to European public sector requirements; (2) **Hybrid cloud offerings**, bridging on-premises (Fabasoft Folio) and cloud (Business Process Cloud) needs; and (3) **AI integration** via Mindbreeze InSpire for knowledge management. However, the company faces challenges scaling beyond DACH (Germany, Austria, Switzerland), where it competes with larger rivals like OpenText and SAP. Its niche positioning limits direct competition but also caps addressable market expansion. Fabasoft’s R&D emphasis (evidenced by tools like app.ducx for low-code development) supports innovation, though reliance on government contracts may introduce cyclicality. The company’s €25.07M cash reserve provides flexibility for strategic acquisitions to bolster its cloud capabilities.