A lot of companies are riding in the wake of SAP. While most of these companies attempt to provide services for the complete product palette in the R/3 after-market, realTech AG has specialized itself in one area.
The company located in Walldorf prescribes exclusively to providing technical consultation and services for the SAP R/3 environment. In other words, a director of a computer center would obtain all the services needed for the computer center from realTech. With potent partners in the software and hardware fields, as well as 300 consultants on hand, the company is the worldwide leader in this niche.
A look at their list of customers shows that realTech has gained the trust of many well-known companies including Porsche, Daimler-Chrysler, Coca Cola and Harrods.
In addition to the cash-cow business area of technical R/3 consulting, the SAP specialist also markets software solutions that simplify the management of computer centers.
The most important asset of the company is, however, the team of consultants, as director of finance Daniele Di Croce explained in a private conversation. The consultants regularly participate in training programs so that they also have a command of the most common operating systems, such as Windows NT, Oracle or Linux. This reduces the risk of revenue loss at realTech, should the SAP market become less profitable.
In addition to the consulting business, realTech has also established itself in the Internet. This includes activities in the field of mySAP.com as well as in web-attached storage, which enables the storing and archiving of data via the Internet. The data to be stored is sent via the Internet to the realTech computer center where it is saved and managed. realTech obtains its Internet know how in cooperation with Grau Software GmbH.
With an estimated EPS of 2.22 Euro in 2001, the price earning ratio would first equal 48. The stock is thus fairly priced. We see realTech as a longer term investment. You should take advantage of slower days to begin investing.
