IVU: Profiteer of Traffic Transition with Good Figures

Last Updated: 4. Dezember 2023By

Today I would like to introduce you to another company from the second stock exchange here in the „Schlussgong“ with the traffic turnaround profiteer IVU. Last week it presented itself at the German Equity Forum and left a very good impression there.

Before we go straight into the latest figures, first a brief overview of the company’s activities: IVU was founded in 1976 by graduates of the Technical University of Berlin and has been providing punctual and reliable traffic in the metropolises of the world for 47 years with more than 600 engineers.

In growing cities, people and vehicles are constantly in motion – a logistical challenge that requires intelligent and secure software systems. Based on the so-called IVU.suite, IVU develops powerful IT solutions for public passenger and freight transport and transport logistics.

IVU’s integrated products plan, optimize and control the use of buses and trains, inform passengers in real time, create routes for package delivery and support retailers in location selection.

Revenue and Gross Profit Continue to Rise Let’s look at the figures: Revenue from January to September of this year rose 3% to €75.7 million. Gross profit, which reflects value creation, rose 7% to €63.9 million. For the record: Gross profit is a key figure in business economics in which sales revenues are set against production and material costs as well as other operating income.

Operating profit (EBIT) was €3.1 million below the level of the previous year and thus corresponded to the seasonal course of business typical for IVU (the majority of the profit is always earned in the 4th quarter). Operating cash flow (cash inflow from operational business) rose from €2.8 to €7.4 million.

Positive outlook for 2023 and beyond What is important for the future is that IVU’s solutions remain in high demand. The current order backlog for the year 2023 covers the entire planned turnover for the current financial year. The company is, according to its own statements, well and robustly positioned both personnel, technically and financially.

IVU has a high liquidity, a good order backlog and increasing recurrent revenues. For the current financial year, turnover of more than €120 million (2022: €113.2 million) with a gross profit of €95 million (2022: €90.6 million) and an operating result (EBIT) of over €15 million (2022: €14.9 million) is still expected.

My conclusion: The medium-term sales and earnings potential of IVU is large, which is why the IVU share is undervalued according to my analysis at present. The readers of my stock exchange service „Der Depot-Optimierer“ have already made some hundred percent in profit with the share since my first recommendation.