Original-Research: Limes Schlosskliniken AG (von NuWays AG): BUY

Classification of NuWays AG to Limes Schlosskliniken AG

Company Name:	Limes Schlosskliniken AG
ISIN:	DE000A0JDBC7
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 710
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Dividend debut & strong Q1 reinforce growth trajectory

Today, LIMES announced that its supervisory board has approved the FY25 annual accounts, confirming the preliminary figures published in February, and will propose a dividend of € 10.00 per share at the AGM in June. This marks the group's first-ever dividend, a meaningful signal of financial maturity and cash generation ability, in our view. The dividend is well covered: at € 10.00 per share, the total payout amounts to € 2.9m against FY25p FCF of € 4.0m, implying a payout ratio of c. 73% on an FCF basis, despite FY25 FCF being temporarily burdened by the capex associated with the openings of Abtsee and Bergisches Land. As these investments normalise (eNuW: € 100k capex per clinic), FCF conversion is set to improve materially, leaving ample room for continued dividend growth and reinvestments into the clinic network. The initiation of a dividend also broadens the potential investor base, as income-oriented shareholders can now participate in the LIMES story.

Equally compelling, management flagged that FY26 has started stronger than expected. Q1 total sales came in at € 15.5m (+38% yoy), which should have been predominantly driven by the contributions of the new clinics. EBITDA came in at € 3.9m (+32% yoy), implying a margin of 25%. The strong growth is particularly noteworthy given that Q1 is seasonally a rather soft period, suggesting that the ramp-up of Abtsee and Bergisches Land is progressing well ahead of schedule, which is in-line with what management told is in recent roadshow meetings. Annualising Q1 revenues alone points to a run rate of c. € 62m, and given that Abtsse and Lindlar will continue to close the gap to group-average KPIs, full-year sales could comfortably exceed the company’s communicated target of € 65.6m as well as our estimates (67.3m).

This is fully confirming our investment thesis on LIMES. First, it validates our core assumption that when LIMES opens capacity, it fills driven by the group's differentiated referral ecosystem, strong brand recognition among physicians, psychotherapists and corporate health departments, and a structural undersupply of high-quality psychiatric care that shows no sign of abating. Second, the margin profile of 25% in Q1 underscores the operating leverage inherent in the model as new clinics progressively absorb their fixed cost base. Third, the maiden dividend alongside a strong operational start to FY26 demonstrates that the business has entered a new phase of financial maturity, transitioning from an investment cycle into a self-funding, cash-generative platform.

At current levels, the shares trade at just 6.4x FY26e EV/EBITDA, a significant discount for a business compounding revenues at >25% with expanding margins, a pristine balance sheet and now a dividend.

Reiterate BUY with a PT of € 710 based on DCF and keep LIMES in our Alpha List.
 

You can download the research here: limes-schlosskliniken-ag-2026-04-29-previewreview-en-4dc23
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 Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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