Humble Group: Earnings growth starting to materialise - ABG

'24e-'26e adj. EBITA up 1%
Limited opex investments to help drive EBITA growth
'25e EV/EBITA of 9x is ~40% below peer average


Takeaways from the report

The Q3 report was in line with consensus on sales and EBITA (+1% vs. FactSet consensus on both sales and adj. EBITA). We note that the company had increased spending y-o-y on marketing and that this was the source of the y-o-y opex increase. Benefits from the marketing spending should materialise in the near term, and this should aid short-term earnings growth. Moreover, the management team highlighted that it would not invest as heavily in '25 as it has done so far in '24. This should also allow higher drop-through from gross profit to EBITA — something that investors have been wanting to see for a few quarters.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/humble-group/Equity-research/2024/10/humble-group---earnings-growth-starting-to-materialise/