Leonteq AG (LEON) AI Stock Analysis

• Market Cap: CHF253.70M
• Dividend Yield: 21.87%
• Average Volume (3M): 46.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• 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: 59 Neutral
• Price Target: CHF15.50 ▲(13.14% Upside)

The score is primarily constrained by weakening financial performance and negative operating/free cash flow, partially supported by a prudent balance sheet. Technicals show only a modest short-term improvement versus a weaker long-term trend, and valuation signals are clouded by a negative P/E alongside a very high dividend yield.

Positive Factors

Proprietary technology platform

A proprietary tech platform supports scalable, repeatable structuring and distribution of tailored structured products. Over months this reduces per-product costs, speeds time-to-market, and creates a sticky service offering that strengthens client relationships and competitive positioning.

Prudent balance sheet / low leverage

A low leverage profile and solid equity base preserve financial flexibility through business cycles. This durability helps fund structured product inventories and market-making obligations, absorb losses, and support strategic investment without immediate reliance on costly external financing.

Relatively stable EBIT/EBITDA margins

Stable operating margins despite top-line pressure indicate underlying operational efficiency in structuring and distribution. This resiliency supports recovery potential, helps preserve cash generation at the operating-profit level, and limits erosion of core profitability over the medium term.

Negative Factors

Declining revenue and profitability

Sustained revenue and profit declines reduce scale benefits from fees and asset-linked management, pressuring margins and fee income. Over months, this can force pricing concessions, limit investment in product development, and weaken client acquisition economics.

Negative operating and free cash flow

Persistent negative operating and free cash flows impair the firm's ability to self-fund product issuance, market-making inventory, and platform investments. Over time this increases reliance on external funding, raising refinancing and liquidity risk during market stress.

Sharp EPS deterioration and weak revenue growth

Large EPS contraction and negative revenue growth reflect material earnings pressure that can reduce retained earnings and dividend sustainability. Structurally, this limits capital available for R&D and distribution expansion, weakening medium-term growth prospects and investor confidence.

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

Mixed fundamentals: declining revenue and profitability pressure (lower gross and net margins) and negative operating/free cash flow weigh on results, partly offset by relatively stable EBIT/EBITDA margins and a solid, low-leverage balance sheet.

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: 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 13.7 is below the 20-day moving average (MA) of 14.45, below the 50-day MA of 14.22, and below the 200-day MA of 16.53, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 17.40 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	76 Outperform	CHF2.30B	18.07	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	CHF3.70B	14.98	11.11%	4.66%	3.80%	15.49%
EFGN	63 Neutral	CHF5.86B	16.45	19.05%	3.15%	-0.27%	21.41%
SQN	62 Neutral	CHF6.49B	21.13	―	1.22%	18.76%	20.08%
VATN	61 Neutral	CHF2.49B	15.95	5.75%	3.88%	-12.47%	2.74%
LEON	59 Neutral	CHF253.70M	-338.80	―	21.87%	-4.06%	-109.73%

Leonteq AG Corporate Events

Leonteq Wins BaFin Licence Extension to Launch Retail Flow Business in Germany

Germany’s Federal Financial Supervisory Authority (BaFin) has granted Leonteq Securities (Europe) GmbH an extension to its licence, allowing it to support Leonteq Securities AG’s trading activities and paving the way for the rollout of its retail flow business in the German market. The initiative builds on Leonteq’s rapid expansion in Switzerland, where it now offers more than 10,000 exchange-listed leveraged products on SIX and BX Swiss, has captured a 7% product market share on SIX within eight months, and ranks first in the Payoff Market Making Index for execution quality; management describes the retail flow push as Leonteq’s largest recent investment and a key milestone in its strategy to become a leading issuer of exchange-traded structured products beyond Switzerland, with German investors set to gain direct access to its technology-driven platform and local expertise.

The most recent analyst rating on (CH:LEON) stock is a Hold with a CHF14.50 price target. To see the full list of analyst forecasts on Leonteq AG stock, see the CH:LEON Stock Forecast page.

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.