Original-Research: Delticom AG (von Quirin Privatbank Kapitalmarktgeschäft): Buy

Classification of Quirin Privatbank Kapitalmarktgeschäft to Delticom AG

Company Name:	Delticom AG
ISIN:	DE0005146807
Reason for the research:	Update
Recommendation:	Buy
from:	07.04.2026
Target price:	3.90
Last rating change:
Analyst:	Daniel Kukalj, CEFA, CIIA

Tough market, tougher discipline

Delticom's FY2025 results tell a story of deliberate transformation rather than stagnation. Revenue of EUR 484m was flat yoy, but beneath the surface the business is structurally sounder than at any point in recent years; leaner cost base, stronger free cash flow, and a management team that has demonstrated it will protect margins over volume when market conditions demand it. The reported EBITDA of EUR 19.8m, delivered despite a EUR -1.3m FX headwind and a deliberate Q4 volume sacrifice, confirms that the earnings floor is holding. It is worth noting that the Q4 EBITDA margin was at 9.6% (Q4 EBIT margin: 7.7%), one of the highest values of the last Q4 quarters and shows the potential if the recessionary phase in the DACH region were to end. At EUR 4.1m or EUR 0.28 per share, consolidated net income was stable to previous year (EUR 4.0m or EUR 0.27 per share). The Management Board and Supervisory Board of Delticom AG are demonstrating a clear and continued commitment to their shareholder-friendly distribution policy: a dividend of EUR 0.12 per share will be proposed at the AGM on 7th July, representing an attractive yield of approximately 5.3%. The planned payment in October 2026 reflects the company's prudent and forward-looking approach to liquidity management. For FY 2026, management is guiding operative EBITDA of EUR 19-24m on revenue of EUR 480-520m. The floor is credible: FY25 proved the business can hold EUR ~20m EBITDA even in adverse conditions. At an EV/EBITDA of roughly 5.0x Delticom trades at a deep discount to its closest peer OPONEO (typically 8-12x EBITDA); and a dividend yield of close to 5%, the market is pricing this as a structurally declining business. The earnings trajectory says otherwise. Applying our ROE/COE valuation approach, we derive a new fair value of 3.90 (3.80), therefore we confirm our BUY rating.
 

You can download the research here: DELTICOM_AG_20260407
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