MLS Multimedia S.A. (Mlsr.AT/MLS GA) MLS Multimedia S.A. (Mlsr.AT
MLS Multimedia S.A. (MLSr.AT/MLS GA) CyclosCountr Securitiesy: Greece Industry: IT . Initiating Coverage Apr 16, 2008 , 18:00 GMT +2 Price: EUR 0.91 Market Cap: EUR 11m GI:3,943.87 MLS Multimedia S.A. (MLSr.AT/MLS GA) EUR 1.32, ‘BUY’ Target price assumes a 24-month investment horizon. Cyclos Securities is regulated by HCMC: Granted licence : 1/58/9.10.1990 Valuation Ratios The Greek car navigation turnaround 2007A 2008E 2009F 2010F P/E 12,07 x 9,32 x 7,74 x 6,80 x story P/BV 0,89 x 0,86 x 0,81 x 0,76 x EV/Sales 1,37 x 1,03 x 0,99 x 1,01 x • We believe that MLS Multimedia is a ‘classic company EV/EBITDA 2,92 x 2,83 x 2,63 x 2,64 x Dividend Payout 17,2% 30,6% 35,0% 35,0% turnaround story’ . The company is eventually favoured by D/Y 1,43% 3,28% 4,52% 5,15% investing in a niche market with brilliant prospects. The company invested heavily in the past in the development of Financial Ratios multimedia applications, mainly for car navigation and speech 2007A 2008E 2009F 2010F ROE 7,4% 9,2% 10,5% 11,2% technology. Today it is expected to favour from its dominant ROIC 11,4% 11,5% 12,6% 13,1% position in the ‘sky rocketing growth’ Greek car navigation sector EBITDA margin 47,1% 36,5% 37,7% 38,2% EBIT margin 19,7% 18,8% 20,5% 21,6% • MLS is active in the development, publishing and distribution of Net debt/equity -0,10 x -0,10 x -0,02 x 0,08 x navigation systems and the development, issue and promotion of Fundamentals speech technology applications, educational and general 2007A 2008E 2009F 2010F multimedia applications.
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