| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.32 | 3026 |
| Intrinsic value (DCF) | 0.33 | -59 |
| Graham-Dodd Method | 0.43 | -46 |
| Graham Formula | n/a |
q.beyond AG is a German IT services company specializing in cloud computing, SAP consulting, and Internet of Things (IoT) solutions. Headquartered in Cologne, the company operates through two core segments: Cloud & IoT, which provides virtual IT workplaces, business applications, and secure data services, and SAP, offering consulting, implementation, and maintenance services for SAP systems. q.beyond primarily serves medium-sized enterprises in Germany and internationally. Formerly known as QSC AG, the company rebranded in 2020 to reflect its strategic focus on digital transformation services. With a market cap of approximately €112 million, q.beyond competes in the dynamic IT services sector, leveraging its expertise in cloud infrastructure and enterprise software to support businesses in their digitalization efforts. Despite recent financial challenges, the company maintains a strong cash position, positioning it for potential growth in Germany's expanding cloud and IoT markets.
q.beyond AG presents a mixed investment profile. The company operates in high-growth segments like cloud computing and IoT, benefiting from increasing digitalization trends among German SMEs. However, its financial performance has been weak, with a net loss of €4.95 million in the last reporting period and negative EPS. The company's beta of 1.34 indicates higher volatility than the market. Positives include €39 million in cash reserves and positive operating cash flow of €10.5 million, providing some financial flexibility. Investors should weigh the growth potential of q.beyond's specialized IT services against its current profitability challenges and the competitive German IT services landscape.
q.beyond AG competes in Germany's crowded IT services market with a niche focus on cloud, IoT, and SAP services for mid-sized companies. Its competitive advantage lies in its integrated service offerings combining infrastructure (cloud), applications (SAP), and emerging technologies (IoT). The company's deep SAP expertise is particularly valuable given SAP's dominance in German enterprise software. However, q.beyond faces significant competition from larger IT service providers with greater scale and resources. Its relatively small size (€192.6 million revenue) limits its ability to compete on price with major players. The company's focus on medium-sized businesses provides some differentiation, as larger competitors often prioritize enterprise clients. q.beyond's cloud and IoT capabilities could become more valuable as digital transformation accelerates among German SMEs, but the company must improve its profitability to sustain investment in these growth areas. Its German base provides local market knowledge advantages but may limit international growth potential compared to global competitors.