Pyramid German

I have rarely been so bullish. You can find what the guys are doing in some of my posts.

The €100 million sales target for 2022 was known after the acquisition of Pyramid and Faytech.

EBIT should be around 8 million euros.

But the long-term target is more exciting.

The board sees the goal very realistically to reach at least 200 million euros in sales in five years.

That's about 15 percent growth per year.

The current valuation is only around €55 million.

If a fair standard comes in here, the share should rise 100% this year.

Even KUV 1 is cheap for a company that is growing strongly, is profitable and is in the tech sector.

With sales of €200 million, the KUV would be 0.25 in 2027.

KUV 1 then means +400% from today.

KUV 4 at 200 Mio€ turnover (not unusual) would be an enterprise value of 800 Mio€.

Currently 50 Mio€ -> 1600%.

Share price 3€ --> 48€.

Fantasy is part of it, but I'm in it full throttle.

Buy and hold 🙏🏼🚀

I think about this share I will report until it has a little more notoriety or at least the price is higher and known by itself 😄

Wallstreet Online has now noticed for themselves how glaringly undervalued it is.

Not only KUV of below 0.5 km tech range for 2022/2023 but even valued below book value. At some point the reaction has to come.

Here times the article, almost everything well zam:

The price list is richer by an exciting title. Pyramid went public through a reverse IPO.

The price list is richer by an exciting title. Pyramid went public through a reverse IPO. The Freiburg-based company is a provider of self-service terminals that, for example, allow hotel guests to check in themselves, air travelers to check in their luggage themselves, or supermarket customers to take over the work of the cashier. Pyramid even sees itself as the world market leader in self-service terminals for restaurants and grocery stores. The medium-sized company has slipped into the stock market shell of Mic AG. Prior to this, the portfolio of the former venture capital company had been purged. All that remained was a single listed investment, which is soon to be used as a vehicle for a reverse IPO. But that is another matter. Mic AG is soon to be renamed Pyramid. We talk to CEO Andreas Empl about the future prospects. Basically, Pyramid is to become a global player with a special focus on the huge market in the USA. For the coming year, CEO Empl expects revenues to increase to between 67 and 71 million, with EBIT forecast in a range between 6 and 6.4 million. For the cycle that is coming to an end, management is looking at 58.2 million in revenues and 5 million in Ebit. However, Pyramid would like to become a 100 million company. Announced the acquisition of Faytech AG. A manufacturer of touchscreen devices for point-of-sale and point-of-service as well as in-dustrial applications with worldwide production capacity, primarily in China. The company, based in Witzenhausen, Hesse, is growing rapidly. For 2022, the management board expects about 30 million in sales as well as an Ebit of more than 1.7 million. Together with Pyramid, the Ebit adds up to 7.7 to 8.1 million. Empl estimates the synergies at more than 1 million euros p.a.. For example, he expects savings in manufacturing and operating costs. Empl announces that the purchase agreement will be signed by the end of the year. The original target date was October 1. According to Empl, the result of a particularly thorough due diligence process is improved terms for the deal. The aim is to merge the two companies. Together, they want to position themselves as the "world's leading supplier" of self-service terminals. Few stock market players have Pyramid on their minds yet. Since June, the share price has plummeted from 3.50 euros to around 2.50 euros. There seems to be a bottoming out here. The valuation is well below book value, the P/E ratio is in single digits. Conclusion: The future pyramid addresses the trends of digitization and self-service. Price increases programmed.

I'm going to tell you why I think Die MIC AG is cool.

I think it's worth reading, even if it takes a few minutes. You'll learn about the pioneer of the digital marketplace. The whole thing is a German company, which is why the valuation with a price-turnover ratio of less than one and a price-earnings ratio of less than ten is still reality in my view, but not for much longer.

The company itself can basically be said to be nothing special at first. In fact, it could be described as a kind of SPAC, since it was originally just an empty corporate shell. A holding company that was invested in small companies but did not make any significant sales and was or is no longer operational.

Despite this, you can see a significant increase in the share price. This is because they have taken over Pyramid GmbH by acquisition.

Many of you certainly don't know Pyramid as a company, but all of you have used it at some point. If you have entered your order at Rewe or McDonald's on the touch screen with the beautiful pictures of the food you want and then paid, you have used their terminals.

Pyramid has a very strong presence in many countries and is one of the market leaders in terms of technology and distribution.

Recently, Pyramid Computer GmbH confirmed its sales and earnings forecast for 2021.

The forecast of the 100% subsidiary of MIC AG foresees Pyramid Computer GmbH sales in a range of EUR 58.0 million to EUR 63.0 million and an operating result (EBIT) of between EUR 4.9 million and EUR 5.3 million for the financial year 2021.

FY 2020 sales € 57.7 million and EBIT € 4.8 million.

So you can say, not only a decent growth for normal times but especially for the times we currently have, a strong development for a small cap.

Now I just want to throw in the ring, the market cap of this by all means well growing company is €50 million.

And that is the market cap of MIC AG.

So you can say, KUV under 1 and P/E approx. 10.

Definitely not overvalued but really favorably valued for a technological topic.

But the whole thing goes further 👆🏼

After the acquisition of this company from the topic of digital platforms/tablets and payment, MIC AG has started after the attack on another major player from this area.

The plan is to acquire 100% of the shares of faytech AG.

In July, the interest in the acquisition was expressed and currently the diligence is still ongoing.

faytech AG is a leading manufacturer of touch screen devices for P.O.S. (Point-of-Sale and Point-of-Service) and industrial applications with subsidiaries in Asia and North America.

Of course, this acquisition is not 100% through yet but seems to be on the home stretch.

Through this acquisition, MIC AG has issued The fixed revenue target of € 100 million in 2022 or 2023 at the latest. That would be a price-turnover ratio of 0.5 at the file valuation, which I would find very unusual for a digital company.

Let's take a look at the expected revenue development according to research:

Revenue 2022 -> 93M€

Sales 2023 -> 110M€

Turnover 2024 -> 125,5 Mio€

Growth is therefore around 15% per year.

EBIT 2022 -> €6.3 million

EBIT 2023 -> €9.1 million

EBIT 2024 -> €11.3 million

Of course, these are forecasts, but the whole thing reads very well.

P/E ratio would be below 5 in 2024.

We all don't have a crystal ball, but I still don't believe that a small cape with such a strongly growing business segment and a very interesting topic will have such a favorable valuation in the long term.

From my point of view, it is first important that the takeover goes through, then sales will increase strongly again on their own. After that, it is a matter of landing orders for Pyramid and Faytech.

Conclusion:

I only invest in MIC AG because of the acquisition already made and the planned acquisition. I find the touch screen terminals in stores and restaurants extremely cool as a customer and believe that this is a thoroughly justified and exciting investment story.

Potential:

Gigantic as soon as the masses take notice

My target price 12 months:

5.50€ (KUV approx. 2) and thus still not overvalued.

Is this investment advice?

No 😄👍🏼

Have fun!



Price is simply no longer correct...

Payout:389,94€

of which tax refund:47,29€

Addition of the trading costs of €9.90

Total amount:€399.84