Leonteq AG (LEON) AI Stock Analysis

• Market Cap: CHF245.40M
• Dividend Yield: 21.87%
• Average Volume (3M): 46.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -4.06%
• EPS Growth: -109.73%
• Country: CH
• Employees: 583
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.53
• Shares Outstanding: 18,494,242
• 10 Day Avg. Volume: 47,027
• 30 Day Avg. Volume: 46,482
• PEG Ratio: -0.83
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 1.62
• P/FCF Ratio: -8.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: CHF13.50 ▼(-1.46% Downside)

Leonteq AG's overall stock score is primarily impacted by its mixed financial performance and bearish technical indicators. The company's declining revenues and negative cash flows are significant concerns. Additionally, the stock's technical analysis suggests potential further downside. The valuation is also worrisome with a negative P/E ratio, despite a high dividend yield.

Positive Factors

Stable Capital Structure

A low debt-to-equity ratio suggests that Leonteq AG manages its leverage prudently, providing financial stability and flexibility to navigate market challenges.

Operational Efficiency

Stable EBIT and EBITDA margins indicate that Leonteq AG maintains operational efficiency, which can help sustain profitability despite revenue pressures.

Innovative Business Model

Leonteq's innovative business model in structuring financial products enhances its competitive edge, supporting long-term growth and market differentiation.

Negative Factors

Declining Revenue

Significant revenue decline poses a challenge to Leonteq AG's growth prospects, potentially impacting its ability to invest in new opportunities and maintain market share.

Negative Cash Flows

Negative cash flows indicate cash management issues, which can limit Leonteq AG's ability to fund operations and strategic initiatives, affecting long-term sustainability.

Profitability Challenges

Declining profit margins highlight profitability challenges for Leonteq AG, which may hinder its capacity to generate shareholder value and reinvest in business growth.

Leonteq AG Business Overview & Revenue Model

Company Description

Leonteq AG provides structured investment products and long-term savings and retirement solutions in Switzerland and internationally. It operates through Investment Solutions and Insurance & Wealth Planning Solutions segments. The company manufactures and distributes structured investment products. It also offers savings, investment, and drawdown products; and digital platform that enables unit-linked retail products with financial guarantees, as well as hedging for structured products. The company offers its services to platform partners under the terms of cooperation agreements, as well as distributes its products to retail investors through institutional and financial intermediaries. The company was formerly known as EFG Financial Products Holding AG and changed its name to Leonteq AG in June 2013. Leonteq AG was incorporated in 2007 and is headquartered in Zurich, Switzerland.

How the Company Makes Money

Leonteq AG generates revenue primarily through the issuance and distribution of structured financial products. The company's revenue model is based on several key streams: first, it earns fees from the structuring and distribution of these products, which are tailored to meet the specific needs of clients. Second, Leonteq benefits from the management of assets linked to its structured products, often charging management fees. Additionally, the company engages in market-making activities, which can provide further income through spreads on trades. Significant partnerships with banks and financial institutions enhance Leonteq's distribution capabilities, while its technology platform drives efficiency and scalability in its operations, contributing to overall profitability.

Leonteq AG Financial Statement Overview

Summary

Leonteq AG shows mixed financial performance. While it maintains a stable capital structure with low leverage, the company faces profitability challenges due to declining revenues and margins. Cash flow management is a concern with negative free cash flows, indicating a need for strategic improvements.

Income Statement

The company's revenue decreased significantly from 2022 to 2023, with a subsequent drop in gross profit and net income. Gross profit and net profit margins have also declined, indicating pressure on profitability. However, EBIT and EBITDA margins remain relatively stable, suggesting some operational efficiency.

Balance Sheet

Leonteq AG has a low debt-to-equity ratio, indicating prudent leverage management. The equity ratio is moderate, reflecting a balanced capital structure. Return on equity has decreased, aligning with reduced profitability, but the company maintains a solid equity base compared to liabilities.

Cash Flow

The company reports negative operating and free cash flows, highlighting cash management challenges. The free cash flow growth rate is negative, and the ratios of cash flow to net income indicate inefficiencies in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	235.40M	214.47M	256.88M	466.75M	428.74M	255.47M
Gross Profit	217.32M	88.97M	256.88M	433.25M	393.09M	215.43M
EBITDA	59.72M	52.16M	64.30M	232.02M	214.74M	82.51M
Net Income	-619.00K	5.84M	20.60M	156.45M	155.72M	39.89M
Balance Sheet
Total Assets	10.93B	10.67B	9.26B	12.33B	14.44B	12.42B
Cash, Cash Equivalents and Short-Term Investments	7.08B	4.50B	4.64B	3.81B	3.09B	3.27B
Total Debt	5.21B	89.32M	4.96B	5.23B	6.58B	435.15M
Total Liabilities	10.21B	9.86B	8.48B	11.46B	13.64B	11.77B
Stockholders Equity	717.38M	803.83M	780.13M	870.03M	802.09M	647.51M
Cash Flow
Free Cash Flow	515.41M	-43.21M	-316.25M	-1.85B	2.12B	1.18B
Operating Cash Flow	518.72M	-16.77M	-313.94M	-1.83B	2.14B	1.20B
Investing Cash Flow	-1.26B	-26.41M	-29.50M	-25.86M	-23.07M	-25.51M
Financing Cash Flow	3.68M	-40.56M	-116.56M	-93.06M	-32.78M	-29.95M

Leonteq AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:LEON, the sentiment is Negative. The current price of 13.7 is above the 20-day moving average (MA) of 13.42, below the 50-day MA of 14.39, and below the 200-day MA of 16.61, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 33.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:LEON.

Leonteq AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFT	76 Outperform	CHF2.25B	17.51	27.64%	2.36%	9.07%	18.07%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VONN	66 Neutral	CHF3.65B	14.60	11.11%	4.66%	3.80%	15.49%
EFGN	63 Neutral	CHF6.01B	16.45	19.05%	3.15%	-0.27%	21.41%
SQN	62 Neutral	CHF7.07B	23.15	―	1.22%	18.76%	20.08%
VATN	61 Neutral	CHF2.40B	15.62	5.75%	3.88%	-12.47%	2.74%
LEON	49 Neutral	CHF245.40M	-323.37	―	21.87%	-4.06%	-109.73%

Leonteq AG Corporate Events

Leonteq Completes FRTB Transition Amid Strategic Shifts

Leonteq AG has completed its transition to the SA-FRTB regulatory framework, achieving a CET1 ratio of over 15% by November 2025. Despite improvements in customer activity, the company anticipates an underlying loss for the year due to reduced hedging contributions. The company has made strides in restoring customer confidence and expanding its revenue base, although it remains sensitive to market conditions. Leonteq is also undergoing strategic changes, including selling its Japan branch and increasing its Lisbon service center workforce, aiming to reduce costs and improve profitability.

The most recent analyst rating on (CH:LEON) stock is a Hold with a CHF15.00 price target. To see the full list of analyst forecasts on Leonteq AG stock, see the CH:LEON Stock Forecast page.