Mutares: Worth a Look for the SDAX Riser

Last Updated: 13. Dezember 2023By

Last week I reported to you about the changes in the German selection indices, which will take place next Monday. A real reshuffle takes place in the small cap index SDAX.
Today I would like to introduce you to a SDAX riser, which probably not everyone of you knows. We are talking about Mutares.

Mutares invests in companies in special situations. I would like to introduce you to the company first. Mutares was founded in 2008 by Robin Laik and is based in Munich. Laik is still CEO and holds about 25% of the shares. The investment company acquires participations in companies with great growth potential.

Mutares is particularly focusing on companies that are in special situations. This can be a temporary weakness in earnings, but also an upcoming restructuring or an unregulated succession of entrepreneurs. The goal is to further develop the acquired companies and put them on a profitable growth path.

Three new participations In the selection of the takeover objects, the management proves a lucky hand, which can also be seen in the course development. Recently, the company was extremely active and announced three new participations within a few days.

In addition to the meal delivery service SRT Group, Mutares acquired the Prénatal activities in the Netherlands from PRG Retail Group. The third newcomer is High Precision Components Witten. The manufacturer of car hinges fits well into the portfolio and should be integrated into the Kico & ISH Group.

Mutares recently also announced a record exit. The sale of Special Melted Products brought in a sales revenue of 150 million euros after only one and a half years.

Mutares has big goals For the current financial year, CEO Laik expects revenues of 4.8 to 5.4 billion euros. Compared to the previous year, this corresponds to an increase of up to 44%. The annual profit should reach 92 to 112 million euros.

In the coming years, the business should be significantly expanded. By 2028, Mutares is aiming for an annual turnover of 10 billion euros and an annual profit of 200 million euros.

In addition, finance chief Mark Friedrich announced that shareholders should receive an annual dividend of at least 2.00 euros per share in the future. Based on this promise, the current dividend yield is a whopping 6.1%. This year, 1.75 euros were paid out per share. This means that the distribution was increased by 86% within only three years.

The Mutares share marks a new all-time high Not only because of the high dividend yield is the SDAX riser attractive. The chart technique is also positive. The Mutares share is in a dynamic uptrend and recently reached a new all-time high at around 33 euros.

After the strong share price increase of almost 50% since August, pauses are certainly possible. In the medium term, however, the uptrend should continue. For next year, prices in the range of 38 and 40 euros could be reached. Plus a dividend above average.