tiprankstipranks
Trending News
More News >
adesso AG (DE:ADN1)
XETRA:ADN1
Advertisement

adesso AG (ADN1) AI Stock Analysis

Compare
13 Followers

Top Page

DE:ADN1

adesso AG

(XETRA:ADN1)

Rating:67Neutral
Price Target:
€92.00
▲(3.84% Upside)
adesso AG's stock score is primarily driven by its steady financial performance and positive technical indicators. However, the high P/E ratio and modest dividend yield suggest overvaluation, which tempers the overall score. The absence of earnings call data and corporate events does not impact the score.
Positive Factors
Profitability
Ongoing measures to enhance profitability are expected to result in a slight year-on-year improvement in the margin over the course of the year.
Sales Performance
Sales grew 14.2% growth, contributing to the overall positive performance of the company.
Workforce Utilization
Higher workforce utilization and the revival of the IT Solution business are key catalysts for the company.
Negative Factors
Cost Management
The cost of materials increased significantly by 27% due to the employment of external staff.
EBITDA Margin
The Q1 EBITDA margin decreased to 5.0% from 5.6% in the previous year.
Profit Warnings
Profit warnings of the past two years and weaker margin compared to peers prompt a more conservative stance.

adesso AG (ADN1) vs. iShares MSCI Germany ETF (EWG)

adesso AG Business Overview & Revenue Model

Company Descriptionadesso SE operates as an IT service provider focusing on consulting and software development in Germany, Austria, Switzerland, and internationally. It operates through two segments, IT Services and IT Solutions. The company offers IT consulting and software development services; and distributes software products and industry-specific or industry-neutral solutions. It serves automotive, banks/financial services, utilities, healthcare, retail, life sciences, manufacturing, media and entertainment, food, exhibition, public authorities, public transportation, and insurance industries. The company was founded in 1997 and is based in Dortmund, Germany.
How the Company Makes Moneyadesso AG generates revenue through multiple channels, primarily by offering IT consulting services, software development, and system integration. The company's core revenue streams include project-based contracts, long-term service agreements, and maintenance services for software solutions. Additionally, adesso AG benefits from strategic partnerships with leading technology providers, enabling it to integrate advanced technologies into its offerings. The company also pursues a growth strategy through acquisitions, expanding its market reach and capabilities, which further contributes to its earnings.

adesso AG Financial Statement Overview

Summary
adesso AG demonstrates steady revenue growth and operational efficiency, but faces challenges with profitability and increased leverage. The company needs to focus on improving profit margins and managing debt levels to enhance financial stability. Cash flow management remains a strength, despite recent declines in free cash flow growth.
Income Statement
72
Positive
adesso AG has shown consistent revenue growth over the years, with a TTM revenue growth rate of 3.07%. The gross profit margin has slightly decreased in the TTM period compared to previous years, indicating some pressure on cost management. The net profit margin remains low at 0.63% in the TTM, suggesting limited profitability. However, the company has maintained stable EBIT and EBITDA margins, reflecting operational efficiency.
Balance Sheet
65
Positive
The company's debt-to-equity ratio has increased to 1.52 in the TTM, indicating higher leverage, which could pose a risk if not managed properly. The return on equity is modest at 4.16%, showing limited returns to shareholders. The equity ratio is relatively stable, suggesting a balanced asset structure.
Cash Flow
68
Positive
adesso AG's free cash flow growth rate is negative in the TTM, which is a concern for cash generation. However, the operating cash flow to net income ratio is healthy, indicating good cash conversion from earnings. The free cash flow to net income ratio is strong at 80.79%, reflecting efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.38B1.30B1.14B900.25M678.32M523.38M
Gross Profit189.58M160.79M146.66M269.51M102.36M164.20M
EBITDA110.76M101.43M82.43M93.32M102.99M60.48M
Net Income12.32M8.12M3.21M28.60M47.50M20.95M
Balance Sheet
Total Assets843.52M876.76M785.99M655.57M555.71M372.15M
Cash, Cash Equivalents and Short-Term Investments44.88M89.68M103.01M90.96M111.47M56.06M
Total Debt227.04M288.19M285.52M219.56M197.57M129.82M
Total Liabilities510.38M682.85M578.21M440.38M363.88M269.27M
Stockholders Equity178.12M189.97M203.00M210.03M185.16M102.34M
Cash Flow
Free Cash Flow61.89M81.00M42.52M12.12M29.55M54.16M
Operating Cash Flow75.39M98.67M76.86M36.07M47.91M64.96M
Investing Cash Flow-62.16M-35.13M-50.78M-43.50M-25.87M-28.47M
Financing Cash Flow-23.41M-74.28M-15.89M-10.98M32.65M-27.53M

adesso AG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price88.60
Price Trends
50DMA
84.26
Positive
100DMA
88.30
Negative
200DMA
89.18
Negative
Market Momentum
MACD
0.74
Negative
RSI
53.97
Neutral
STOCH
51.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ADN1, the sentiment is Positive. The current price of 88.6 is above the 20-day moving average (MA) of 81.78, above the 50-day MA of 84.26, and below the 200-day MA of 89.18, indicating a neutral trend. The MACD of 0.74 indicates Negative momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 51.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:ADN1.

adesso AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
€572.26M46.216.72%0.85%12.68%
61
Neutral
$35.52B8.84-11.06%1.87%8.55%-8.14%
€225.68M13.9015.12%
€707.52M38.033.11%
€447.01M11.5415.59%2.99%
€529.48M25.6616.15%
€506.52M20.7115.66%1.65%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:ADN1
adesso AG
88.60
33.57
61.00%
GB:0JCO
All for One Group
44.00
-3.49
-7.35%
GB:0O0F
CANCOM SE
22.45
-3.53
-13.59%
GB:0O2W
GFT Technologies
16.78
-3.98
-19.17%
GB:0NJB
SNP Schneider Neureither & Partner AG (Schneider Neureither & Partner AG)
74.00
16.40
28.47%
GB:0W19
DATAGROUP
60.50
21.88
56.65%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025