Source: Lnyxbroker.com
What do New York, Dubai and Singapore have in common? They rely on transportation technologies made in Germany by INIT.
These are the growth drivers
The global trend towards sustainable mobility and increasing urbanization are driving demand for intelligent transport solutions, especially in urban centers where public transport plays a key role.
INIT itself cites population growth, urbanization, megacities, climate protection, smart cities and international expansion as the most important growth drivers (Quelle).
In addition, INIT could benefit from the planned investments in infrastructure, as a significant proportion of this is accounted for by transport infrastructure and local and long-distance public transport.
Growth momentum has increased in the recent past, but INIT may have reached a turning point.
In the last financial year, turnover jumped from EUR 181 million to EUR 266 million. However, profits could only be increased from EUR 1.54 to EUR 1.57 per share as, among other things, increased investments were necessary to enable future growth.
Outlook and valuation
The company could now reap the rewards this year. In the first quarter, turnover increased by 39.5% to 75.7 million euros. Organic growth amounted to 30%.
The EBIT 2.0 million, as the company was able to carry out major write-downs following the acquisition of DILAX.
However, operating cash flow more than doubled to EUR 15.5 million.
The forecast for 2025 was confirmed, with INIT continuing to forecast sales of EUR 300 - 330 million and EBIT of EUR 30 - 33 million.
Over the course of the year, this would correspond to an increase in EBIT of 22 - 35%.
This is in line with the consensus estimates, which predict a 25% jump in earnings to EUR 1.96 per share.
This gives INIT a P/E ratio of 19.1, compared to the long-term average of 23.
Similar profit increases are expected in the next two years. The only problem is likely to be the sharp rise in the euro, which is likely to have resulted in significant exchange rate losses in the second quarter.
The half-year report will be presented on August 14.
Does INIT have a moat?
However, the negative currency effects will not play a role forever; much more important is the expansion of the business base.
Because INIT could have a solid moat.
INIT offers a highly integrated and modular product portfolio. These holistic systems are specially tailored to the complex requirements of transport companies and are difficult to replicate.
In addition, INIT benefits from high switching costs for its customers. The implementation of INIT's hardware and software solutions requires close integration into the existing infrastructure of transportation companies. Switching to another provider would entail considerable costs, training effort and risks ("lock-in effect").
INIT Innovation share: chart from 09.07.2025, price: EUR 37.10 - symbol: IXX | source: TWS
The share has returned to the Aufwärtstrendand has been attracting interest there for three weeks. If the upward trend can be defended, this could form the basis for the next upward impulse towards EUR 42.
Above that, price gains to EUR 46 or 48 would be conceivable.
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