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$IVU (+1,54 %) IVU Traffic Technologies

The company develops, installs and maintains software and hardware solutions for public transportation operations.

The following products are offered:

• IVU.suite and IVU.rail for planning, operation and quality assurance for public transport and railroad companies
• IVU.site, which includes IVU.run for vehicle dispatching, IVU.duty for duty scheduling, IVU.vehicle for vehicle dispatching, IVU.crew and IVU.pad for personnel dispatching, IVU.fleet and IVU.cockpit for fleet management and IVU.control for evaluation

In summary, it is about the complete handling of rail traffic. Creating timetables, reacting to errors (environmental, technical), analyses for optimization, personnel management, ticket sales, announcements, customer information and monitoring.

Due to the unique market position, there is a high retention rate, which leads to constant sales growth of 7-10% for many years. The gross margin is 83% and has also increased consistently in recent years. CapEx is less than 2% of sales. However, personnel costs have so far risen at the same rate as sales, which is why the net margin remains at around 10%.

Over 50% of sales are generated in Germany, another 40% in the rest of Europe, but international sales are also growing rapidly.

The debt burden is constantly less than 1*EBITDA, often even net debt-free.

The P/E ratio is currently 18 and P/E ratio 1.8, dividend yield at 1.9% if share buybacks are included, at 3%.

The company uses AI methods (the business is crying out for them), but also its own optimization algorithms, which are quote: "Better than AI". Of course, this requires many well-paid employees, which is expensive.

The platform model, combined with a lot of (unique) data, AI, well positioned in a growth industry, SaaS and benefiting from public investment and green mobility makes IVU quite interesting.

There is still a lot to be gained, especially abroad, and even if you don't believe it, Germany is seen by many countries as a role model when it comes to public transport.