Datagroup: Final figures and dividend increase

Last Updated: 18. Januar 2024By

German IT and software specialist Datagroup has today released its final figures for the fiscal year 2022/2023. The profit, in particular, showed very positive development. Based on this, the dividend is also expected to be increased.

But before I get to the numbers, I would like to briefly introduce the company Datagroup and its business model to you here in the „Closing Bell“:

Datagroup in portrait Founded in 1983 in Filderstadt near Stuttgart, Datagroup is one of the leading German IT service companies. With nearly 3,000 employees at locations throughout Germany, the company designs, implements, and operates IT infrastructures and business applications such as SAP.

With the product CORBOX, Datagroup is a so-called full-service provider and manages over 600,000 IT workstations for medium-sized and large companies as well as public clients. The company grows organically (i.e. on its own) and regularly through acquisitions.

Solid revenue and increasing profits In the past fiscal year 2022/2023, Datagroup achieved a revenue of 497.8 million euros, reaching the upper end of the forecast range (485 to 500 million euros). However, this was slightly below the previous year’s value of 501.4 million euros.

When looking at the previous year’s numbers, it should be noted that Datagroup had won some special orders during the corona phase, which expired with the end of the pandemic.

The profit development looks positive: The earnings before interest, taxes, and depreciation (EBITDA) increased by 4.9% in the past fiscal year to 80.2 million euros. This even slightly exceeded the forecast range of 76 to 80 million euros.

The operating profit (EBIT) was able to be increased disproportionately through efficiency measures and a focus on profitable contracts, and despite investments of around 1 million euros in the fourth quarter in the future topic of artificial intelligence, it was 9.3% above the previous year’s value at 45.3 million euros.

The operating profit margin (EBIT margin) was 9.1%, 0.7 percentage points above the previous year’s value of 8.4%, and thus also above the medium-term target margin of 9%. Net profit increased by 28.6% from 22.0 to 28.3 million euros, and earnings per share rose from 2.64 to 3.39 euros.

Dividend to increase from 1.10 to 1.50 euros per share Due to the positive profit development, the dividend is also expected to be increased from 1.10 euros per share to 1.50 euros. Based on the current price, this means a dividend yield of almost 2.8%.

Datagroup is strongly focused on topics such as artificial intelligence (AI), IT security, and cloud, as these enable the company’s future growth. After a weaker year in 2023, the Datagroup share could take off again this year. Therefore, according to my analysis, it is worthwhile to take a closer look at the stock.