Warburg Research GmbH initiated coverage of Eleving Group

Eleving Group announces that Warburg Research GmbH has released an initiation report on the company on November 19, 2024. The report analyzes Eleving Group’s business operations, growth trends and future potential, financial performance, and valuation. The report evaluates Eleving Group's current position using the latest publicly available information and projections.

As per Warburg Research GmbH’s estimates, Eleving Group is positioned for strong growth, driven by innovative data-driven underwriting and scoring systems and a scalable operational backbone. Over 1.3 million customers have received financing exceeding EUR 1.8 billion since the start of the business. The company has managed to significantly grow its net loan portfolio from EUR 141 million in 2018 to EUR 320 million in 2023. The future net loan portfolio growth projection is set at an 18.3% CAGR between 2023 and 2026, while revenue growth is expected to be at a CAGR of +15.7% in the respective period.

The report assigns a fair valuation of Eleving Group’s shares at EUR 2.46 per share using a residual income model. The valuation reflects the company’s robust RoE of roughly 35%, strong growth potential, and high dividend payout expectations.

About Eleving Group

Eleving Group has driven innovation in financial technology around the world since its foundation in Latvia in 2012. As of today, the group operates in 16 markets and 3 continents, encouraging financial inclusion and upward social mobility in underserved communities around the globe. Eleving Group has developed a multi-brand portfolio for its vehicle and consumer finance business lines, with around 2/3 of the portfolio comprising secured vehicle loans and mobility products, with Mogo as the leading brand, and around 1/3 of the portfolio including unsecured consumer finance products. Currently, 55% of the group's portfolio is located in Europe, 32% in Africa, and 13% in the rest of the world.

The Group's historical customer base exceeds 1.3 million customers worldwide, while the total volume of loans issued is nearing EUR 1.9 billion. With headquarters in Latvia, Lithuania, and Estonia and a governance structure in Luxembourg, the Group ensures efficient and transparent business management, powered at the operational level by over 2850 employees. For two consecutive years, the Group was listed among Europe’s 1000 fastest-growing companies published by the Financial Times in 2020 and 2021, while in 2024, Eleving Group was ranked as the 41st fastest-growing European company in the last decade in 'Europe's Long-Term Growth Champions 2025' research by Financial Times and Statista.

More information

Edgars Rauza, Investor Relations Manager, edgars.rauza@eleving.com

Disclaimer

The report is prepared for informational purposes only and does not recommend buying or selling the company's shares. Investors are responsible for their investment decisions.