Magix released yesterday its annual results for the year ending 30th of September 2013.
Before starting discussion, I would like to share that I don't really understand two thinks with this company : why release is done 5 months after closure? Looks too much long! And why this company stopped to released english version of its accounts?
Any way let's review the accounts : Revenues : 32,5MEUR (+12,8% vs 2012) EBIT : 3,1MEUR (+6,3% vs 2012 but 2012 EBIT had an extraordinary profit of 3,74MEUR) NET : 2,3MEUR (+23%) Profitability is good : EBIT margin = 9,7% Net Margin = 7,7%, ROE =7,7%
This company had a very bad 2012 and 2013 shows recovery is on track
How about valuation?!
Market capitalisation by 28th of Feb is 32,76MEUR (3,5EUR/sh)
-4y Average FCF is 3,4MEUR, which give an EV of 26 MEUR (with 15% cost of Capital and 0 growth)
-Magix has also an huge available cash : 18MEUR
Magix value : 26+18=44MEUR (4,7EUR/sh) is 34% higher than current share price, which is a good bargain, taking into account our conservative assumptions.
Disclosure : shareholder of Magix
Best regards
Denis
