Original-Research: ATOSS Software SE (von NuWays AG): BUY

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Original-Research: ATOSS Software SE - from NuWays AG

30.07.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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Classification of NuWays AG to ATOSS Software SE

Company Name: ATOSS Software SE

ISIN: DE0005104400

Reason for the research: Update

Recommendation: BUY

from: 30.07.2025

Target price: EUR 152.00

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

Solid H1 despite headwinds // Mid-term prospects promising

Q2 sales grew by 9.2% yoy (-0.9% qoq) to EUR 45.8m (H1 % yoy to EUR 92.1m),

mainly carried by Cloud & Subscriptions (% yoy, .6% qoq to EUR 22.8m),

which compensated for a weaker Licenses business (-61% yoy, -43% qoq to EUR

1.6m). The latter was the result of the ongoing cloud transition but also

economic headwinds. Consulting and Maintenance revenues stayed largely flat

at EUR 9.4m and EUR 9.8m. The recurring revenue share rose to 69.4%, up from 64%

at the end of FY24 (2030 ambition of 80%).

Both Q2 and H1 saw a decline in intake compared to last year's strong

performance. This was primarily due to longer sales cycles and cautious

customer sentiment towards IT investments amidst the current macroeconomic

conditions. With the arrival of the new CRO in November and new key sales

hiring during the past few months, this should pick up from Q4/Q1 '26 again

(eNuW).

In the second quarter, the EBIT margin settled at 33.6%, coming down from

last year's elevated 37.3%, which had been temporarily boosted by unspent

investment funds during the sales restructuring. With the H1 EBIT margin

having come in at 33.6%, management expressed its confidence in being able

to reach 32-33% (eNuW 33%; guidance >31%), though this will ultimately

depend on how revenues develop and the pace of new hiring. Q2 operating cash

flow was EUR -5.5m, mainly due to higher tax payments of EUR 23.3m in H1 2025,

up from EUR 5.2m last year.

Mid-term prospects remain promising. The European Workforce Management (WFM)

market is expected to grow by 10% p.a. until 2030 carried by (1) a

constantly increasing regulatory environment which is particularly relevant

of enterprises operating across multiple countries, (2) resource and skilled

staff scarcity and (3) the rising share of digitalization, supported by

Germany's planned EUR 500bn infrastructure investments. While 2025 is likely

to show slower growth for ATOSS (eNuW: 11.8%) due to postponements of IT

investments as a result of macro uncertainties, growth is seen to accelerate

as for next year carried by the pent-up demand and cross-selling potentials

from recently launched AI services.

While ATOSS' valuation remains high at 29x EV/EBIT 2025e, the company's high

competitive quality grounded in deep regulatory know-how as well as

top-class product suites, reflected by ROCEs of around 60%, a strong balance

sheet (EUR 97m net cash) and ample mid-term growth prospects (16% sales CAGR

until 2030 as reflected by its mid-term ambition) form an attractive

investment case. BUY with a EUR 152 PT based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=e30879b880184bc2b6fe9f4495f8a227

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2176512 30.07.2025 CET/CEST

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