INIT is at the Beginning of an Exceptionally Strong Growth Phase. Europe Alone is a Market Worth Billions!

The Init share (575980) could be discovered in the small cap segment, as the company is very optimistic about the future in the annual report published today. With a current P/E ratio of 19 and P/S ratio of 1.5, the valuation is moderate, as the management announces the start of a strong growth phase. Init supplies hardware and software for public transportation. When it comes to planning, scheduling, ticketing, fare management, operations control, passenger information and optimization, Init is ready and waiting.

In 2023, Init grew by 10% to €210.8 million. EBIT stagnated at €21 million. The bottom line was a profit of €15.2 million. However, the future looks very bright and will lead Init into a new, strong growth phase. "We are only at the beginning of an exceptionally strong growth phase, a boom that is characterized by many international tenders for digitization and climate protection projects with volumes in the triple-digit millions." For Europe alone, Init is predicting a "billion-euro business". AI is also ensuring that the necessary digitization process of transport operations is accelerating, thus providing Init with a growth spurt. Init uses AI to better predict departure times, resulting in a 49% improvement.

Init now believes that accelerated growth is possible. The long-term forecast is for average growth of 10-15 %. The outlook for 2024 is correspondingly optimistic. Revenue is expected to increase by 14-23% to €240 to 260 million. EBIT is expected to climb by 14-33% to €24-28 million. In the long term, the EBIT margin should continue to rise from its current level of 10%, as Init is seeing a strong upturn in the software business. The P/E ratio will fall from 19 to 14 by 2025.

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