Comarch S.A. (CMR.WA) | Investment Case

1. Company Snapshot

1.a. Company Description

Comarch S.A. designs, implements, and integrates IT solutions worldwide.It offers Internet of Things (IoT) solutions for telecommunication industry.The company also provides small business and corporate banking, mobile banking, factoring, cloud factoring, trade finance, wealth management, loan origination, custody, digital insurance, commission and incentive, life insurance, anti-money laundering, business intelligence, authentication, and manager assistant solutions.

In addition, it offers EOS, a platform for electronic handling of matters in the office; ERGO supporting system; Worlflow, a platform that supports electronic and paper circulation of documents; Video Cut, a solution for quick analysis of secured video materials; e-Government, an online public service platform; integrated ERP system; smart parking; security platform; employee portal; eRecording; monitoring and automation platform; and video terminal solutions.Further, the company provides loyalty programs, marketing campaign and employee motivation management, electronic data and business information exchange, document management, sales process management support systems, and mobile applications.Additionally, it offers IT systems for hospitals; software products for health record management in medical facilities; IOT solutions and its components; and services for the automotive industry, such as software development, infotainment in-car, and integration with smartphones, as well as services for consumer electronics and semiconductor industry, such as support in hardware prototyping, and software and test systems development.

The company is also involved in the sports activities.Comarch S.A. was founded in 1993 and is headquartered in Kraków, Poland.

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1.b. Last Insights on CMR

Comarch S.A.'s recent performance is driven by its high growth potential, as highlighted in a recent article on December 2, 2024. The company's strong growth prospects are attributed to its presence in the technology sector, which is expected to experience significant advancements in the coming years. Additionally, Comarch's focus on innovation and R&D investments has enabled it to stay ahead of the competition, driving its growth momentum.

1.c. Company Highlights

Last Price	331
Change Percentage	0.00%
Open	331
Previous Close	331
Market Cap ( Millions)	2692
Volume	0
Year High	332.5
Year Low	222
M A 50	330.9
M A 200	307.37

FCF Yield	0.68%
Dividend Yield	0.00%
ROE	2.73%
Debt / Equity	14.08%
Net Debt / EBIDTA	-248.60%
Price To Book	2.04
Price Earnings Ratio	75.64
Price To FCF	147.44
Price To sales	1.82
EV / EBITDA	15.5

2. Transcript Summary

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3. NewsRoom

High Growth Tech And 2 Other Exciting Stocks With Potential Growth

Dec -02

Source:

High Growth Tech Stocks To Explore In November 2024

Nov -01

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.99%)

6. Segments

Information Technology

Expected Growth: 8%

Comarch S.A.'s 8% growth in Information Technology is driven by increasing demand for digital transformation, cloud computing, and cybersecurity solutions. The company's strong presence in Europe and expanding partnerships with key clients contribute to its growth. Additionally, investments in research and development, particularly in AI and IoT, enable Comarch to stay competitive and capitalize on emerging trends.

Sport

Expected Growth: 7%

Comarch S.A.'s Sport segment growth is driven by increasing demand for sports technology, rising popularity of e-sports, and growing adoption of digital solutions in sports management. Additionally, the company's innovative products and services, such as sports data analytics and fan engagement platforms, are contributing to its 7% growth rate.

Medical

Expected Growth: 9%

Comarch S.A.'s Medical segment growth is driven by increasing demand for digital healthcare solutions, government initiatives promoting e-healthcare, and rising adoption of telemedicine and medical analytics. Additionally, the company's strategic partnerships and investments in R&D have enabled it to expand its product offerings and improve operational efficiency, contributing to its 9% growth.

Investment

Expected Growth: 5%

Comarch S.A.'s 5% growth is driven by increasing demand for IT services, expansion into new markets, and strategic partnerships. The company's strong brand recognition, innovative product offerings, and cost-effective solutions also contribute to its growth. Additionally, Comarch's focus on digital transformation and cloud computing enables it to capitalize on emerging trends, further fueling its growth.

7. Detailed Products

Comarch ERP

Comarch ERP is an integrated enterprise resource planning system that helps organizations manage their financial, human, and material resources.

Comarch CRM

Comarch CRM is a customer relationship management system that enables businesses to manage sales, marketing, and customer service activities.

Comarch BSS

Comarch BSS is a business support system that provides a comprehensive platform for telecommunications operators to manage their business operations.

Comarch IoT

Comarch IoT is an Internet of Things platform that enables businesses to collect, process, and analyze data from connected devices.

Comarch Healthcare

Comarch Healthcare is a suite of healthcare IT solutions that provide electronic health records, medical billing, and practice management capabilities.

Comarch EDI

Comarch EDI is an electronic data interchange platform that enables businesses to exchange data with their partners and suppliers.

8. Comarch S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Comarch S.A. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the IT industry.

Bargaining Power Of Customers

Comarch S.A. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's customized solutions make it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Comarch S.A. relies on a few key suppliers for its operations, which gives them some bargaining power. However, the company's strong relationships with its suppliers mitigate this risk.

Threat Of New Entrants

The IT industry has high barriers to entry, including significant capital requirements and the need for specialized expertise. This limits the threat of new entrants to Comarch S.A.'s market.

Intensity Of Rivalry

Comarch S.A. operates in a highly competitive market with many established players. The company must continuously innovate and improve its offerings to maintain its market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	10.23%
Debt Cost	5.95%
Equity Weight	89.77%
Equity Cost	6.20%
WACC	6.18%
Leverage	11.39%

11. Quality Control: Comarch S.A. passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Magic Software

A-Score: 6.2/10

Value: 3.5

Growth: 6.7

Quality: 6.7

Yield: 7.5

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

Aubay

A-Score: 5.3/10

Value: 4.9

Growth: 5.9

Quality: 6.2

Yield: 4.4

Momentum: 6.0

Volatility: 4.7

1-Year Total Return ->

All for One

A-Score: 5.2/10

Value: 7.8

Growth: 6.3

Quality: 4.6

Yield: 6.2

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

Cancom

A-Score: 5.0/10

Value: 5.9

Growth: 5.8

Quality: 4.3

Yield: 6.9

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

Sonaecom

A-Score: 4.2/10

Value: 5.8

Growth: 1.0

Quality: 2.4

Yield: 5.0

Momentum: 8.5

Volatility: 2.7

1-Year Total Return ->

Comarch

A-Score: 3.9/10

Value: 3.4

Growth: 3.1

Quality: 4.2

Yield: 1.9

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.42%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.18%

Comarch S.A. - PLCOMAR00012

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CMR

1.c. Company Highlights

Strong Momentum

Medium Volatility

Fairly Valued

Average Yield

Revenues Beats

Average Quality

Less Volatile

Average Growth

Stable Momentum

Lower Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.99%)

6. Segments

Information Technology

Expected Growth: 8%

Sport

Expected Growth: 7%

Medical

Expected Growth: 9%

Investment

Expected Growth: 5%

7. Detailed Products

Comarch ERP

Comarch CRM

Comarch BSS

Comarch IoT

Comarch Healthcare

Comarch EDI

8. Comarch S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Comarch S.A. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

331.0$

Current Price

331$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA