DATAGROUP - Path to 9%+ EBIT margins

DATAGROUP’s earnings recovered strongly in FY21, driven by top-line growth and margin expansion as a result of the ongoing turnaround at its BIT Düsseldorf and DG Ulm units and better utilisation. Revenue growth was generated through both significant M&A and strong organic growth. The M&A-driven business model is intact, with a well filled pipeline, and DATAGROUP’s target of an EBIT margin of more than 9% should be within reach in the medium term. Trading at 28.4x FY22e P/E on consensus estimates, DATAGROUP is valued at a 14% premium to peers.