D.he aircraft manufacturers are going through difficult times. New planes are not really needed because a large part of the airlines’ existing fleet remains on the ground as a result of the pandemic. This also has an impact on the Stuttgart-based software and consulting company Cenit AG. “There is certainly a part in every aircraft that has been manufactured with the help of a machine that uses our software,” says Kurt Bengel, the spokesman for the board of the listed company. The customers of the medium-sized company with around 780 employees include Airbus and Boeing.
The difficulties faced by the aircraft and automobile manufacturers are causing a sharp drop in revenues and operating profit, but this has not put the share price under any pressure in recent months. In mid-July the share was still quoted at 9.28 euros, currently it is 13 euros. All of the analysts surveyed by the Bloomberg finance agency recommend buying the paper and forecast a price between EUR 12 and EUR 16.40 in the next twelve months. Cenit has only recently had an anchor shareholder. Since November, Primepulse has held 15 percent of the shares in Stuttgart, which went public during the time of the Neuer Markt and are among the few that survived its decline unscathed.
Primepulse SE from Munich invests in technology-oriented companies and initially only had 10 percent of the shares. The anchor shareholder brings the aim of including Cenit in the Tec-Dax into play. Bengel, who has been a member of the Executive Board since 2007, says: “The Tec-Dax is a medium-term goal. Until then, however, we must first concentrate on our goals for the next five years. ”According to the strategy, sales of 300 million euros should be achieved by 2025, plus more than 10 million euros in our own software, especially for industrial solutions Percent should contribute. This is essential in order to achieve the target return of 8 to 10 percent. The return on sales in 2016 was 9.6 percent. But that was a while ago.
Bengel is clear that he cannot achieve this project on his own with the help of growth alone. “We are considering acquisitions in Europe or the United States. This is about the advisory topics. We want to specifically strengthen this mainstay. We are looking for companies that offer their own software that suits us. “Cenit has no bank debt and currently has liquid funds of 27 million euros. In addition to the aviation industry, automotive and mechanical engineering are also among the core industries for the company. All three are in bigger trouble right now.
From January to September, therefore, Cenit’s revenues fell by 13 percent to 126.1 million euros. And earnings before interest and tax collapsed 63 percent to 1.6 million euros. Among other things, the company has committed itself to software for product lifecycle management (PLM): a concept that integrates all information that arises during the course of a product’s lifecycle, from initial design, construction and production to customer service, maintenance and of maintenance. The Stuttgart-based company works with other software manufacturers in many areas.
Corona has messed up the company’s China plans. That delayed the establishment of an own branch. “But it can now start. I see good opportunities in factory automation there. It’s a big market. The number of robots will continue to grow worldwide, including in Europe, ”says the board of directors. In China, mechanical engineering and the automotive industry are of particular interest to medium-sized companies. Cenit claims that it has a free float of around 70 percent. The equity ratio is currently 50.2 percent. The price / earnings ratio (P / E) is 108. This means that the share is very highly valued. As a rule, papers that are expected to grow strongly have a high P / E ratio.