Physitrack: All set for strong growth to continue - ABG

Physitrack stays strong despite external disruptions
We add Champion Health to the figures
Share trades more than 40% below Nordic SaaS peers

M&A agenda continues strongly – three acquisitions in H1
Since Physitrack is not exposed to external factors, such as the war or supply chain constraints, we expect a positive Q1 for the company. Since the year-end, Physitrack has completed three acquisitions. Both PTcourses.com and Wellnow were consolidated in February and March, respectively, while the latest acquisition of Champion Health, a leading wellness technology platform for SME and corporates, will be consolidated in May. We like that over 95% of Champion’s revenue is recurring and on a standalone basis, and management expects Champion to achieve growth of more than 30% (slides from Champion conf. call on page 4-5). With Wellnow and Champion, Physitrack has broadened its virtual care part of the business towards a more holistic offering, including preventive care, wellness, mental health, etc., rather than only offering rehabilitation. And with PTcourses, the company has entered the educational area, which we believe will increase the chances of winning new customers and enable cross-selling. We also positively note that in Q1, Physitrack signed a deal with a Tesla manufacturing plant in Germany, which made ~4000 people Wellnow customers.

We slightly lower subscription sales but add Champion
We slightly adjust the subscription-based revenues by decreasing our organic expectations slightly and adding Champion Health to the figures, resulting in a 0.6% decrease in Q1e revenues and a 1.0% raise of Q2-Q4 revenues in 2022e. Moreover, we add the integration costs related to Champion Health to the NRI’s but keep our adj. EBITDA margin expectations of 33% in 2022e for the group.

Our value range is 13x-19x, but it is trading at 8.5x in ‘23e
The share is currently trading at 19.5x EV/EBITDA for ‘22e, which drops to 8.5x for ’23e. On EV/sales the share is trading at 3.6x and 3.0x ...
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