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Qliro AB (publ)

Financial Services
QLIRO.ST: 

Research

  • Buy by Alpha (30/09/2024)
    • 45.00 +57.89% by 28/09/2025

    Qliro is a growth opportunity within e-Commerce payments. The payment and check-out service provider turned profitable in 2023 and aims for (international) expansion.

    The shares are priced 50x PE TTM. Based on increasing payment volumes in 2024 I expect a strong growth in EPS. Assuming continued growth the share has 50% upside (50x EPS 2024) potential in the short term. Qliro recently issued 50Mkr new shares to invest in further expansion. 2023-2024 results show that the company has good potential for long-term growth.

  • Valuation (1)

    • New customers

      The number of new merchants in the SME segment shows a strong growth in 2024. At the same time the onboarding lead time greatly reduced. This should have a positive effect on the payment volumes in the second half of 2024 (potential 20% YoY growth).

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      Two new enterprise customers will increase volumes in the second half of 2024.

      This growth in payment volumes is expected to have a direct effect on the bottom-line. The expected effect on EPS is not priced into the share price.

      30/09/2024 by ALPHA｜
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  • Business (2)

    • Payment solutions

      Payments is expected to grow after signing new Enterprise and SME customers. The payments volume could reach >13.000Mkr in 2024 with >1Mkr new volume added. In the first half year the number of merchants increased with 85%, including two large Enterprise customers.

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      30/09/2024 by ALPHA｜
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    • Digital banking services

      In September 2024 Qliro sold its personal loan portfolio to Morrow Bank as part of its strategy to focus on payment solutions. This divestment reduces revenues with 12-13%.

      26/09/2024 by ALPHA｜
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  • People (2)

    • CEO Christoffer Rutgersson

      Christoffer Rutgersson was appointed CEO in 2022 and has been leading Qliro towards a profitable company with a strategy focused on payment services. Since his appointment he has received and acquired a significant share position in the company. His investments in Qliro are a good sign of confidence.

      27/09/2024 by ALPHA｜
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    • Long-term investors

      Key shareholders are long-term investors that support the company's expansion strategy.

      27/09/2024 by ALPHA｜
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  • Financial (1)

    • Earnings growth

      Qliro signed new Enterprise and SME customers that will increase the payments volume. On the other hand the company invests in expansion in Sweden and abroad which increases operational costs. In total I expect earnings per share (after dilution) to double in 2024 compared to TTM.

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      Qliro issued new shares in a direct placement for 50Mkr new capital.
      30/09/2024 by ALPHA｜
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  • Risks (2)

    • Liquidity

      Low trading volumes are a risk for the investment. The trading volumes and the number of shareholders reduced since the introduction year. The share is not popular and not really covered by analysts. With the positive developments under the new CEO (since 2022) the interest for the company should improve.

      30/09/2024 by ALPHA｜
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    • Competitive market

      Online payments is a highly competitive market with strong players.

      19/09/2024 by ALPHA｜
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