MVISE AG's Strategic Transformation and Growth Prospects

mVISE AG, following the leadership of CEO Ralf Thomas in 2022, has undertaken a significant transformation, focusing on software development and restructuring to enhance efficiency and profitability. The company has evolved into a one-stop-shop for software services, covering the complete production lifecycle. This strategic move was bolstered by acquiring opcyc GmbH, a workforce management expert with high profitability margins.

The transformation indicates an increase in visibility and profitability, with expectations of significant EBITDA margin growth by 2027. The combination of long-term contracts in both development and software sectors assures scalable, recurring revenues. The company's holistic development approach and specialized sector expertise present competitive advantages.

mVISE is poised to capitalize on growth trends like digitalization and cloud advancements in Germany. As the demand for workforce management solutions rises due to labor shortages and flexible work trends, opcyc's adaptable toolset positions it strongly in the market. With scalable operations and a current undervaluation at a 5.8x EV/EBITDA, analysts recommend buying, targeting a price of €1.40 based on DCF valuation.