Leonteq AG (LEON) AI Stock Analysis

• Market Cap: CHF281.13M
• Dividend Yield: 19.26%
• Average Volume (3M): 47.13K
• Price to Earnings (P/E): 69.6
• Beta (1Y): 0.91
• 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: 46,162
• 30 Day Avg. Volume: 47,134
• 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: CHF18.00
• Price Target Upside: 15.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: CHF18.00 ▲(15.53% Upside)

Leonteq AG's overall stock score is primarily influenced by its mixed financial performance and valuation concerns. The stable capital structure is a positive, but declining profitability and negative cash flows are significant risks. The technical analysis suggests a neutral outlook, while the high dividend yield offers some appeal despite a negative P/E ratio.

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 partners with financial institutions to offer a diverse array of investment solutions, including derivatives, structured notes, and other tailored financial instruments. A significant portion of its income is derived from fees earned on the structuring, issuance, and management of these products. Additionally, Leonteq benefits from trading activities and hedging operations that support its product offerings. Strategic partnerships with banks and other financial entities enhance its distribution capabilities and expand its market reach, contributing to its overall earnings.

Leonteq AG Financial Statement Overview

Summary

Leonteq AG shows mixed financial performance with declining revenues and margins, indicating profitability challenges. Despite a stable capital structure with low leverage, negative free cash flows highlight cash management issues.

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: 15.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 15.58 is below the 20-day moving average (MA) of 16.88, below the 50-day MA of 16.96, and below the 200-day MA of 16.95, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 32.37 is Neutral, neither overbought nor oversold. The STOCH value of 7.26 is Positive, 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	75 Outperform	$2.32B	18.07	27.64%	2.30%	9.07%	18.07%
SQN	69 Neutral	CHF7.24B	23.71	―	1.25%	18.76%	20.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EFGN	64 Neutral	$4.91B	13.47	19.05%	3.61%	-0.27%	21.41%
VONN	63 Neutral	CHF3.33B	13.31	11.11%	5.02%	3.80%	15.49%
VATN	61 Neutral	CHF2.03B	13.30	5.80%	4.51%	-7.37%	2.85%
LEON	58 Neutral	CHF281.13M	69.56	―	19.26%	-4.06%	-109.73%

Leonteq AG Corporate Events

Leonteq AG Reports Increased Profit Amid Business Transformation

Leonteq AG reported a 33% increase in underlying pre-tax profit for the first half of 2025, despite a 7% decline in operating income due to lower commission and service income. The company is undergoing a business transformation to address structural challenges, with plans to enhance profitability and shareholder value through strategic resizing, optimization, and expansion initiatives.

Leonteq AG Proposes Compensation Reduction Amid Shareholder Concerns

Leonteq AG has announced an agenda for an extraordinary general meeting following shareholder disapproval of the proposed compensation for executive management for 2026. In response, the Board of Directors proposes a significant reduction in maximum compensation, aligning with shareholder expectations and strategic goals, which could impact the company’s governance and stakeholder relations.

Leonteq Strengthens Retail Strategy as Exclusive Market Maker for ETPs at BX Swiss

Leonteq has become the exclusive market maker for Exchange Traded Products (ETPs) at BX Swiss, marking a significant advancement in its retail flow business strategy. This move enhances liquidity and competitive pricing for ETPs, benefiting both private and institutional investors and reinforcing BX Swiss’s position as a dynamic trading venue.

Leonteq Partners with Emirates Islamic for Shari’a-Compliant Products

Leonteq has partnered with Emirates Islamic to issue and distribute Shari’a-compliant structured products, marking a significant expansion in the Gulf region. This collaboration leverages Leonteq’s expertise and Emirates Islamic’s market reach, providing customers with innovative investment solutions and enhancing their access to global markets.