Physitrack: No trend changes - ABG

Strong PF growth but the margin was flat sequentially
We lower '23e-'25e adj. EBITDA by 5-4%
Eyes are still on cash flow – mgmt. remains confident


Q1 showed 36% PF growth, but margin miss on higher opex

The report continued the trend we have seen over the last few quarters, showing strong top-line figures while the margin has often been a bit below our expectations as a result of growth investments and an unfavourable margin mix between Wellness and Lifecare. We note that the margin was flat q-o-q, however, despite Lifecare subscription revenue outgrowing the Wellness segment sequentially, but the CFO explained at the conference call that she expects the margin trough to have been reached. In total, we make small cuts to our estimates, with 1% lower sales combined with 1% higher opex ex. D&A. As a result, '23e-'25e adj. EBITDA comes down by 5-4%, while adj. EBITA comes down 6-5%. Furthermore, on more one-off costs than we expected, '23e reported EBIT comes down by 20%.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/physitrack/Equity-research/2023/5/physitrack---no-trend-changes-/