Signet Bank initiated coverage of Eleving Group
Eleving Group announces that Signet Bank has released a comprehensive initiation report on November 20, 2024, analyzing the company’s sectoral environment, financial performance, and valuation. This report provides an in-depth overview of Eleving Group's market position, growth strategy, and financial projections based on the latest publicly available information.
Financial Performance:
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Revenue and Profitability: Signet Bank projects revenues to grow at a 5-year CAGR of 12.9%, reaching €351.5 million by 2028. By the end of the forecast period, EBITDA and net profit attributable to the equity holders of the Group are forecasted to reach EUR 150.2 million and EUR 55.0 million respectively, reflecting a 5-year CAGR of 14.2% and 22.3%.
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Loan Portfolio: Over the past 5 years, Eleving experienced a robust expansion of its net portfolio growth, achieving a 17.8% CAGR supported by organic growth and targeted acquisitions. The loan portfolio is projected to nearly double by 2028, driven by organic growth and new market entries, reaching €636 million.
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Dividend Policy: Signet Bank identifies profitable growth, and appealing dividend yields as the cornerstone of the investment case for Eleving. The group's strong financial performance strengthens its ability to provide competitive dividend yields. A minimum of 50% of net profits is allocated for dividends, and the yield is expected to rise from 5.8% in 2024 to 14.2% by 2028.
Growth Strategy:
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Expanding into New Markets: The company plans to expand into Sub-Africa and Europe, leveraging unmet demand and favorable demographics.
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Diversifying Products: Introducing SME financing in underserved European and developing markets to capitalize on the existing financing gap.
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Sustainable Solutions: Expanding eco-friendly mobility products, such as electric vehicle financing in Africa.
Key Strengths:
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Innovative IT Systems: Proprietary AI-driven underwriting and loan management systems enable rapid scaling while maintaining operational efficiency.
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Debt Collection Expertise: In-house processes reduce costs and improve recovery rates, enhancing profitability.
Valuation and Market Position:
As per Signet Bank, the Group's shares are valued at €1.88 per share, representing a 13.8% upside from the price of €1.655 as of November 20, 2024. Its profitability metrics, including a projected ROE of 33.6% by 2028, position it favorably in the market despite slightly higher P/B and P/E ratios compared to some European peers.
Find the full report here: https://signetbank.com/wp-content/uploads/2024/11/Eleving_post-IPO_201124s.pdf
About Eleving Group
Eleving Group has driven innovation in financial technology around the world since its foundation in Latvia in 2012. As of today, the group operates in 16 markets and 3 continents, encouraging financial inclusion and upward social mobility in underserved communities around the globe. Eleving Group has developed a multi-brand portfolio for its vehicle and consumer finance business lines, with around 2/3 of the portfolio comprising secured vehicle loans and mobility products, with Mogo as the leading brand, and around 1/3 of the portfolio including unsecured consumer finance products. Currently, 55% of the group's portfolio is located in Europe, 32% in Africa, and 13% in the rest of the world.
The Group's historical customer base exceeds 1.3 million customers worldwide, while the total volume of loans issued is nearing EUR 1.9 billion. With headquarters in Latvia, Lithuania, and Estonia and a governance structure in Luxembourg, the Group ensures efficient and transparent business management, powered at the operational level by over 2850 employees. For two consecutive years, the Group was listed among Europe’s 1000 fastest-growing companies published by the Financial Times in 2020 and 2021, while in 2024, Eleving Group was ranked as the 41st fastest-growing European company in the last decade in 'Europe's Long-Term Growth Champions 2025' research by Financial Times and Statista.
More information
Edgars Rauza, Investor Relations Manager, edgars.rauza@eleving.com
Disclaimer
The Signet Bank report is for informational purposes only and does not constitute a recommendation to buy or sell shares. Investors are advised to make their own investment decisions based on individual circumstances or consult with financial advisors.
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