Novavest Real Estate AG (NREN) AI Stock Analysis

• Market Cap: CHF402.77M
• Dividend Yield: 3.52%
• Average Volume (3M): 3.73K
• Price to Earnings (P/E): 13.4
• Beta (1Y): -0.14
• Revenue Growth: 45.30%
• EPS Growth: 823.48%
• Country: CH
• Employees: 2
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 1.58
• Shares Outstanding: 10,170,915
• 10 Day Avg. Volume: 2,253
• 30 Day Avg. Volume: 3,733
• PEG Ratio: -0.03
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 8.70
• P/FCF Ratio: 21.94
• 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: 68 Neutral
• Price Target: CHF42.00 ▲(5.26% Upside)

Novavest Real Estate AG's overall stock score is driven by strong financial performance, particularly in profitability and revenue growth, despite concerns over increased leverage. The stock's valuation is attractive with a reasonable P/E ratio and a solid dividend yield. Technical analysis suggests a neutral market position, with no significant momentum. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates positive business momentum and expanding market presence, which can enhance long-term profitability and competitive positioning.

Profitability Improvement

Improved profitability metrics suggest efficient cost management and strong revenue conversion to profit, enhancing financial stability and shareholder value.

Cash Generation Ability

Strong cash generation supports operational flexibility and investment capacity, underpinning the company's ability to sustain growth and manage financial obligations.

Negative Factors

Increased Financial Leverage

Higher leverage increases financial risk and could strain cash flows, potentially limiting the company's ability to invest in growth opportunities or weather economic downturns.

Equity Ratio Decline

A declining equity ratio indicates reduced financial stability, which may affect the company's ability to secure favorable financing terms and maintain investor confidence.

Limited Cash Flow Growth

Stagnant cash flow growth can constrain the company's ability to fund new projects, distribute dividends, or reduce debt, impacting long-term strategic flexibility.

Novavest Real Estate AG Business Overview & Revenue Model

Company Description

Novavest Real Estate AG engages in the real estate activities in Switzerland. It develops, rents, and manages residential properties, office and commercial properties, shopping centers, cinemas, hotels, and industrial plants. The company is based in Zurich, Switzerland.

How the Company Makes Money

Novavest Real Estate AG generates revenue through several key streams. The primary source of income comes from rental income generated by its portfolio of residential and commercial properties. Additionally, the company earns revenue through property sales, particularly when it successfully develops or rehabilitates properties to increase their market value. Asset management fees are another significant revenue stream, as NREN manages properties on behalf of investors and charges fees for management services. The company may also engage in joint ventures or partnerships with other real estate firms or investors, which can provide additional financial incentives and shared revenues. Overall, NREN's earnings are bolstered by its strategic property acquisitions and effective management strategies, allowing it to capitalize on the growing demand for real estate in Switzerland.

Novavest Real Estate AG Financial Statement Overview

Summary

Novavest Real Estate AG's financial performance in 2024 shows robust recovery in profitability and revenue growth, despite past volatility. The balance sheet reflects increased leverage, which could introduce risk if not managed effectively. Cash flows are stable but show limited growth potential. Overall, the company exhibits a strong operational recovery with caution required regarding financial leverage.

Income Statement

Novavest Real Estate AG has shown a strong revenue growth rate of 20.88% from 2023 to 2024, indicating positive business momentum. The Gross Profit Margin improved to 84.12%, and the company achieved a significant turnaround in net profitability with a Net Profit Margin of 52.95% in 2024. These metrics suggest efficient cost management and robust revenue conversion to profit. However, the company experienced a net loss in 2023, highlighting potential volatility in earnings.

Balance Sheet

The company's Debt-to-Equity Ratio increased to 1.32 in 2024, suggesting higher financial leverage which could pose risks if not managed properly. The Return on Equity improved to 4.51% in 2024, indicating better utilization of shareholder funds compared to 2023. Equity Ratio decreased to 40.2%, which, while indicative of moderate leverage, suggests some reduction in financial stability.

Cash Flow

Novavest demonstrated a stable Free Cash Flow in 2024, showing no change from its operating cash flow. The Operating Cash Flow to Net Income Ratio is 0.76, reflecting good cash generation ability relative to its net income. However, the absence of Free Cash Flow growth suggests limited expansion of cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.93M	36.87M	29.86M	29.16M	26.73M	24.28M
Gross Profit	36.13M	30.37M	24.67M	24.29M	22.21M	20.72M
EBITDA	37.10M	38.98M	27.40M	28.26M	26.77M	16.10M
Net Income	30.09M	19.11M	-3.97M	22.40M	29.31M	17.84M
Balance Sheet
Total Assets	1.02B	1.05B	793.70M	823.24M	751.15M	666.67M
Cash, Cash Equivalents and Short-Term Investments	4.56M	3.33M	2.56M	4.32M	3.04M	15.05M
Total Debt	528.15M	559.13M	427.16M	439.77M	380.18M	351.80M
Total Liabilities	597.87M	629.50M	461.84M	477.76M	415.35M	374.75M
Stockholders Equity	425.03M	423.24M	331.87M	345.48M	335.80M	291.92M
Cash Flow
Free Cash Flow	10.13M	14.61M	13.81M	7.86M	11.36M	3.62M
Operating Cash Flow	14.09M	14.61M	13.81M	15.95M	15.73M	12.22M
Investing Cash Flow	32.66M	-11.81M	6.67M	-61.16M	-70.65M	-82.01M
Financing Cash Flow	-48.69M	-2.04M	-22.24M	46.49M	42.91M	61.37M

Novavest Real Estate AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:NREN, the sentiment is Positive. The current price of 39.9 is above the 20-day moving average (MA) of 39.71, above the 50-day MA of 39.69, and above the 200-day MA of 38.37, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 24.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:NREN.

Novavest Real Estate AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSPN	72 Outperform	CHF6.70B	16.41	―	2.74%	-1.14%	46.84%
ALLN	72 Outperform	CHF3.44B	13.22	9.87%	3.45%	6.79%	196.21%
SFPN	71 Outperform	CHF338.54M	11.00	―	3.65%	15.04%	325.05%
PLAN	70 Outperform	CHF867.33M	15.62	7.56%	2.16%	27.85%	89.97%
NREN	68 Neutral	CHF402.77M	13.39	―	3.52%	45.30%	823.48%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%