Original-Research: Cantourage Group SE (von NuWays AG): BUY

Classification of NuWays AG to Cantourage Group SE

Company Name:	Cantourage Group SE
ISIN:	DE000A3DSV01
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 10
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Valuation remains de-coupled from operations

Consolidated FY24 figures finally out - no surprises, sentiment overhang lifted. While the individual financial statements (Einzelabschlüsse) had been available for some time, the delayed publication of the consolidated FY24 accounts had been weighing on sentiment. With those now released, all concerns prove unfounded: results came in as expected, with sales of € 50m and EBITDA of € 3.5m. Cash at year-end stood at € 3.3m. The publication removes a key technical overhang and should allow the investment case to refocus on fundamentals going forward.

Strong operational momentum across all markets. FY25 revenues of € 89m (+74% yoy) and record EBITDA of ~€ 6m (eNuW) carried by over 100,000 patients served monthly fully underpin the group’s growth trajectory. Demand remains particularly strong in flowers, the highest-margin product category, while the UK and Poland are growing well above market rates. The initially anticipated demand shock in Germany due to the pending regulatory changes has so far turned out to be less pronounced as initially expected. Nevertheless, management already adjusted its product offering, focusing on higher-margin premium strains which are typically less exposed to demand shocks. We hence remain confident in our growth and margin assumptions for FY26e and beyond.

Regulatory risk more manageable than feared. The ongoing debate around amendments to the MedCanG and potential telemedicine restrictions has been a source of share price volatility, but signals from Berlin are increasingly constructive. A full rollback to pre-legalisation status looks highly unlikely; what is emerging instead is a moderate adjustment of existing legislation. If anything, tighter quality requirements around initial consultations could accelerate market consolidation, benefiting established, quality-focused operators like Cantourage at the expense of lower-quality entrants.

Governance upgrades underway. ERP implementation, IFRS adoption, and broader infrastructure upgrades are set to deliver materially faster and higher-quality financial reporting going forward. The appointment of new CFO Monique Jaqqam signals a clear commitment to capital markets readiness. Management also flagged ambitions to become an active consolidator, a credible ambition given the Sanity transaction has now established clear M&A pricing benchmarks for the sector.

Sanity deal sets a high bar. In February, Sanity Group (German cannabis wholesaler) was bought by Organigram (listed Canadian cannabis producer) for € 250m. The implied multiples (assuming full earnouts) stand at ~ 4.2x EV/Sales (€ 60m sales in FY25) with EBITDA “just positive”. This strongly underpins Cantourage’s attractive valuation of a mere ~ 0.7x EV/Sales FY25e despite an already solid profitability. Importantly, Cantourage's vertically integrated, direct-to-pharmacy model structurally commands superior margins versus Sanity's wholesale-heavy approach, which acts as a mere intermediary in the value chain.

Cantourage is progressing well across several topics including its geographical expansion, a broadening product offering and governance structures. So far, this has not adequately been reflected by the valuation as regulatory uncertainties at its home-turf have weighed on the stocks sentiment. We regard them as increasingly more manageable, hence why we confirm our BUY rating with an unchanged € 10 PT based on a DCF.
 

You can download the research here: cantourage-group-se-2026-03-10-update-en-340b5
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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Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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