Asseco South Eastern Europe S.A. (ASE.WA) | Investment Case

1. Company Snapshot

1.a. Company Description

Asseco South Eastern Europe S.A., together with its subsidiaries, engages in the sale of its own and third-party software.The company operates through Banking Solutions, Payment Solutions, and Dedicated Solutions segments.It offers banking solutions, including omnichannel solutions; integrated core banking systems; authentication security solutions; reporting systems for regulatory compliance and managerial information; and risk management and anti-fraud systems, as well as provides consultancy services in the area of digital and electronic banking, and digital transformation.

The company also provides payment industry solutions for financial and non-financial institutions, including e-commerce, mobile payments, payment card processing, as well as ATM and POS terminal related services.In addition, it provides services to utilities, telecommunications, government, banking, and finance sectors, including business process management, customer service and sales support platform, data registers, smart city, AI and Machine Learning, e-Tax, border control, authentication, dedicated solutions, and BI and ERP.Further, the company offers proprietary solutions and integration services; LeaseFlex, a lease and asset lifecycle management solution; and FinanceFlex.

It serves in Central Europe, South Eastern Europe, Iberian Peninsula, Turkey, Colombia, Peru, and the Dominican Republic.The company was incorporated in 2007 and is headquartered in Warsaw, Poland.Asseco South Eastern Europe S.A. operates as a subsidiary of Asseco International a.s.

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1.b. Last Insights on ASE

Asseco South Eastern Europe S.A.'s recent performance was driven by a robust dividend yield, reaching up to 5.1%, as per recent market analysis. This attractive dividend payout, coupled with a strong financial foundation, has made the company an appealing choice for income-seeking investors. Additionally, the company's consistent payout history has instilled confidence in its ability to maintain a stable dividend stream. Furthermore, Asseco's recent share buyback program has reduced the number of outstanding shares, potentially enhancing earnings per share and benefiting shareholders.

1.c. Company Highlights

Last Price	63.5
Change Percentage	2.42%
Open	62
Previous Close	62
Market Cap ( Millions)	3295
Volume	1113
Year High	84.5
Year Low	47.6
M A 50	67.7
M A 200	66.59

FCF Yield	6.15%
Dividend Yield	2.76%
ROE	18.36%
Debt / Equity	24.01%
Net Debt / EBIDTA	-13.31%
Price To Book	3.29
Price Earnings Ratio	17.32
Price To FCF	16.26
Price To sales	1.86
EV / EBITDA	8.76

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.13%)

6. Segments

Payment Solutions

Expected Growth: 9%

Asseco South Eastern Europe S.A.'s 9% growth in Payment Solutions is driven by increasing adoption of digital payments, growing e-commerce, and rising demand for secure and efficient transaction processing. Additionally, the company's expansion into new markets, strategic partnerships, and investments in innovative technologies such as blockchain and AI also contribute to its growth.

Dedicated Solutions

Expected Growth: 7%

Asseco South Eastern Europe S.A.'s Dedicated Solutions segment growth is driven by increasing demand for customized IT solutions, expansion into new markets, strategic partnerships, and investments in digital transformation. Additionally, the company's strong presence in the region, combined with its expertise in industries such as healthcare and finance, contributes to its 7% growth.

Banking Solutions

Expected Growth: 8%

Asseco South Eastern Europe S.A.'s 8% growth in Banking Solutions is driven by increasing demand for digital transformation, regulatory compliance, and cost reduction in the banking sector. Additionally, the company's strong presence in emerging markets, innovative product offerings, and strategic partnerships contribute to its growth momentum.

Reconciling Items

Expected Growth: 6%

Asseco South Eastern Europe S.A.'s 6% growth is driven by increasing demand for digital transformation in the region, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation, cost optimization, and strong partnerships with key clients have contributed to its growth momentum.

7. Detailed Products

Asseco SEE Banking Platform

A comprehensive banking system that provides a wide range of functionalities for retail and corporate banking, including account management, payment processing, and loan management.

Asseco SEE Insurance Platform

A modular insurance system that supports the entire insurance lifecycle, from policy administration to claims management.

Asseco SEE ERP System

A comprehensive enterprise resource planning system that integrates all aspects of business operations, including financial management, supply chain management, and human capital management.

Asseco SEE Healthcare Information System

A healthcare information system that provides a comprehensive solution for healthcare providers, including electronic health records, medical billing, and practice management.

Asseco SEE Document Management System

A document management system that provides a centralized repository for storing, managing, and retrieving electronic documents.

Asseco SEE IT Consulting Services

A range of IT consulting services that provide expertise in IT strategy, system integration, and technology implementation.

8. Asseco South Eastern Europe S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Asseco South Eastern Europe S.A. is medium due to the presence of alternative software solutions in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is high due to the growing demand for software solutions and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to a competitive landscape.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	12.09%
Debt Cost	5.70%
Equity Weight	87.91%
Equity Cost	5.71%
WACC	5.71%
Leverage	13.75%

11. Quality Control: Asseco South Eastern Europe S.A. passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Asseco Business Solutions

A-Score: 6.8/10

Value: 2.1

Growth: 7.1

Quality: 8.2

Yield: 7.5

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

Text

A-Score: 6.0/10

Value: 5.4

Growth: 8.3

Quality: 8.4

Yield: 8.1

Momentum: 2.5

Volatility: 3.0

1-Year Total Return ->

Sword

A-Score: 5.9/10

Value: 4.0

Growth: 5.7

Quality: 5.4

Yield: 9.4

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

Asseco SEE

A-Score: 5.8/10

Value: 4.1

Growth: 6.7

Quality: 6.9

Yield: 4.4

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

Linedata Services

A-Score: 5.6/10

Value: 7.7

Growth: 6.4

Quality: 7.1

Yield: 5.6

Momentum: 0.5

Volatility: 6.3

1-Year Total Return ->

MIND C.T.I.

A-Score: 5.5/10

Value: 7.9

Growth: 1.9

Quality: 8.2

Yield: 10.0

Momentum: 0.0

Volatility: 5.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.04%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.71%

Asseco South Eastern Europe S.A. - PLASSEE00014

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ASE

1.c. Company Highlights

Higher Growth

Higher Yield

Average Quality

Less Volatile

Revenues Beats

Strong Momentum

Medium Volatility

Average Yield

Revenues Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.13%)

6. Segments

Payment Solutions

Expected Growth: 9%

Dedicated Solutions

Expected Growth: 7%

Banking Solutions

Expected Growth: 8%

Reconciling Items

Expected Growth: 6%

7. Detailed Products

Asseco SEE Banking Platform

Asseco SEE Insurance Platform

Asseco SEE ERP System

Asseco SEE Healthcare Information System

Asseco SEE Document Management System

Asseco SEE IT Consulting Services

8. Asseco South Eastern Europe S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Asseco South Eastern Europe S.A. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

63.5$

Current Price

63.5$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA