Merchants

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).

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.

Graham formula

Qliro expansion plans and expected growth in earnings per share benefit the intrinsic value. Using the Graham formula the intrinsic value is around 44kr based on estimated EPS 0.91kr and 20% annual growth in the coming years

0,91kr x (8.5 + 2 x 20) = 44kr

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.

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%.

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.

Long-term investors

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

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. Earnings per share could double in 2024 compared to TTM Q2'24 (after dilution).

Qliro issued new shares in a direct placement for 50Mkr new capital.

Immaterial assets

In 2023 Qliro activated 95Mkr development costs as immaterial assets. Depreciation on immaterial assets was 65Mkr. This results in 30Mkr hidden costs in immaterial assets in 2023 (50Mkr TTM). Without activation of development costs the company would not make a profit in 2024. There is a risks that the results are too positive and operational costs should actually be higher.

Competitive market

Online payments is a highly competitive market with strong players. Qliro customers are Nordic e-Commerce that have competition from large international players.

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.