NuWays AG: EV Digital Invest AG | Rating: Under Review

Classification of NuWays AG to EV Digital Invest AG

Company Name:	EV Digital Invest AG
ISIN:	DE000A3DD6W5
Reason for the research:	Update
Recommendation:	Under Review
from:	08.05.2025
Target price:	n.a.
Target price on sight of:	12 months
Last rating change:
Analyst:	Frederik Jarchow

Weak FY24 // Clouded outlook and tense liquidity situation; chg

Topic: EVDI published weak final FY24 figures without giving a guidance for FY25. Further, the tense liquidity situation with a negative free cashflow and low liquidity puts the company under pressure and the going concern in question. In detail:

Sales of € 3.1m (-25% yoy) stemming mostly from 13 financed projects (vs 13 in FY23 vs eNuW: 12) with an aggregated financed volume of € 22m (-44% yoy) came in below expectations (eNuW: € 27m) due to the ongoing overall weak industry and sentiment burdened by still high construction costs, restrictive bank lending and not exactly low financing costs compared to real estate prices. Positively, H2 sales seem to have stabilized on levels of € 1.5m (vs € 1.6m in H1), indicating that the through is reached.

EBITDA came in at negative € 4.8m (vs € -3.7m in FY23), which is even below our estimate of € -4.1m, mainly due to softer topline and higher than anticipated costs related to customer claims that are driving other OPEX (€ 4.5m vs € 4.0m in FY23). Personnel expenses declined slightly to € 3.2m (-12% yoy vs eNuW: € 3.6m).

Apart from that, EVDI has diversified its business in FY24 by offering new products that are rather contrary to real-estate investments such as deposit accounts, renewable energy projects, ETFs as well as holistic wealth management. This initiated diversification should reduce the dependency from the very cyclical real-estate project business, stabilizing the income and margins going forward.

Tense liquidity situation. As the cash burn of the company is high, EVDI is at the current stage dependent on further external capital injections. First injections were provided end of March (€ 0.5m). Furthermore, an LOI with the main shareholder VdZ Berlin and another investor about another € 2.35m was signed mid of April. With that, EVDI should be able to continue its operations for the time being. Still, the current turmoil around the main shareholder put this LOI at question in our view. Taking this into account we see an immanent risk of insolvency.

On the back of the weak operating results and the clouded outlook for the industry, paired with the tense liquidity situation and the pending risks that customer claims cannot be solved soon, we take EVDI under review. Signs of operating improvement, further capital injections and customer claims that are off the table would change our view.

You can download the research here: http://www.more-ir.de/d/32512.pdf
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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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