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Original-Research: ATOSS Software SE - from NuWays AG
07.01.2026 / 09:00 CET/CEST
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Classification of NuWays AG to ATOSS Software SE
Company Name: ATOSS Software SE
ISIN: DE0005104400
Reason for the research: Update
Recommendation: BUY
Target price: EUR 152
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald
FY26e: Quality and margins prevail
Entering FY26, ATOSS looks set to increasingly benefit from its strong
structural positioning in the WFM market, moving beyond a year shaped by a
rather cautious customer sentiment leading to elongated sales cycles and
temporarily muted order intake.
Yet, FY25 has once more underlined the robustness of the business model.
Despite macro headwinds, recurring revenues further expanded to 70% (Q3,
+2pp yoy) while ARR grew by 17% yoy to EUR 134m (Cloud & Maintenance) driven
by a strong net retention rate of 111% in Cloud & Subscriptions. Combined
with strong cost management, this allowed for a 34.6% EBIT margin at 9m,
allowing management to lift its FY25 outlook from from previously >=31% to
34%. Importantly, while this clearly highlights sustained earnings power and
upselling capabilities within the installed base, order intake also
stabilized in Q3, pointing towards improving visibility as we enter FY26.
Speaking of which, FY26 is seen to show even more pronounced top-line growth
(eNuW: +13.1% yoy to EUR 214m), driven mainly be three factors: (i) Deferred
IT investments are expected to normalize with easing economic uncertainties.
(ii) The cloud migration of the existing customer base continues to be a
powerful growth lever, supporting both top-line expansion and margin
scalability. (iii) Recently introduced AI-driven functionality and workforce
analytics are likely gaining traction, enhancing ATOSS' value proposition
without materially increasing complexity for customers.
At the same time, ATOSS' profitability profile is set to remain
best-in-class. EBIT margins in the mid-30% range appear sustainable (FY26e:
34.7%) supported by the highly scalable SaaS model, strong gross margins and
disciplined cost management. Hence, ongoing investments into AI, sales
capacity or international expansion should be comfortably absorbed by
operating leverage. With a net cash position of 116m, the company retains
substantial strategic flexibility, including optional bolt-on M&A, although
organic growth remains sufficient to drive value creation (eNuW: >60% ROIC
by FY26e).
Taken together, ATOSS will continue to stand out as high quality software
compounder, combining strong growth and earnings visibility, exceptional
returns and a resilient balance sheet.
While valuation at first glance remains demanding at 34x PE FY26e, it is
underpinned by the company's outstanding business quality and long-term
growth prospects (FY30 targets: EUR 400m sales & >35% EBIT margin)
We hence continue our BUY rating at an unchanged EUR 152 PT based on DCF.
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=c0601a5130c1337f7ce216a65c7fdfb9
For additional information visit our website:
https://www.nuways-ag.com/research-feed
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2255780 07.01.2026 CET/CEST
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