Ferratum Memo 260321
- Understand how resilient Ferratum’s Credit Limit product is against buy-now-pay-later and single payment loan competition
- Understand Ferratum’s growth prospects in Mobile Bank / Primeloan and CapitalBox (SME)
- Understand how Ferratum compares against its nearest multi-country competitors, 4finance and International Personal Finance (IPF), on key metrics, business model and competitive position
- Understand how well covered Ferratum’s SUNs are in a hypothetical run-off scenario as well as in a base case
- Financial projections and FCFE DCF valuation
- Hypothetical run-off SUNs recovery
- What would Ferratum’s SUNs recover in a hypothetical run-off and how well covered are they in our base case?
- What are Ferratum’s shares worth?
- Which consumer unsecured subprime lender has the most resilient business model?
- Does Ferratum generate positive “steady state” FCF (adjusting for the effects of customer loan book changes)?
- How did each of Ferratum, 4finance and IPF trade through COVID and who is best positioned to benefit from an improved competitive environment?