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adesso AG (DE:ADN1)
:ADN1
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adesso AG (ADN1) AI Stock Analysis

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DE:ADN1

adesso AG

(LSE:ADN1)

Rating:67Neutral
Price Target:
€95.00
▲(6.26%Upside)
adesso AG shows strong financial performance driven by revenue and cash flow growth, which is a key positive factor. However, the high P/E ratio suggests overvaluation, which is a significant concern. Technical indicators point to a neutral market stance.
Positive Factors
EBITDA Improvement
The EBITDA margin recovered to 10.6% in the second half of 2024 due to a significant reduction in hiring momentum and increased capacity utilization.
Internal Workforce Utilization
The utilization of the company's internal workforce has improved due to a smaller increase in the number of full-time employees compared to the rise in sales.
Sales Growth
Sales grew 14.2% growth, contributing to the overall positive performance of the company.
Negative Factors
EBITDA Margin Decline
The Q1 EBITDA margin decreased to 5.0% from 5.6% in the previous year.
Guidance Below Expectations
The new guidance includes sales and EBITDA figures that are below the consensus expectations for 2025.
Material Costs
The cost of materials increased significantly by 27% due to the employment of external staff.

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

adesso AG Business Overview & Revenue Model

Company Descriptionadesso AG is a prominent IT service provider headquartered in Germany, specializing in consulting and software development. The company operates across various sectors including automotive, banking, healthcare, and insurance, among others. adesso AG’s core offerings include IT consultancy services, custom software development, and digital transformation solutions, which help clients optimize their business processes and enhance their digital capabilities.
How the Company Makes Moneyadesso AG generates revenue through a combination of consulting fees, project-based income, and software licensing. The company primarily earns money by providing IT consulting services and developing custom software solutions tailored to the needs of its clients across different industries. Additionally, adesso AG has strategic partnerships with technology vendors and platforms, which enable it to offer integrated solutions and drive further sales. The consultancy and development projects are often long-term engagements, contributing to a stable revenue stream. Moreover, as digital transformation continues to be a priority for businesses, adesso AG benefits from increased demand for its services, further supporting its financial performance.

adesso AG Financial Statement Overview

Summary
adesso AG exhibits strong financial performance with impressive revenue and cash flow growth in the TTM period. The income statement reflects solid profitability, while the balance sheet is stable with manageable leverage. Cash flow metrics highlight robust liquidity and reinvestment potential. Overall, the company is on a positive growth trajectory, but should monitor leverage levels to mitigate potential risks.
Income Statement
78
Positive
The company shows strong revenue growth with a 14.27% increase from the previous year to TTM. Gross profit margin is moderate at 13.66%, and net profit margin is improving. The EBIT margin is robust at 6.60%, indicating efficient operations. Overall, the income statement reflects positive growth and profitability trends, although gross profit margins suggest room for improvement.
Balance Sheet
70
Positive
The balance sheet reveals a solid equity ratio of 21.67%, providing a stable financial foundation. The debt-to-equity ratio is 1.52, indicating moderate leverage. Return on equity stands at 4.28%, showing adequate returns for shareholders. Overall, the balance sheet is stable, but there is potential risk if leverage increases significantly.
Cash Flow
82
Very Positive
Cash flow analysis indicates significant growth in free cash flow, up by 93.49% in the TTM period, highlighting strong cash generation. The operating cash flow to net income ratio is 12.54, suggesting efficient cash conversion. The company maintains healthy free cash flow relative to net income, indicating strong liquidity and capacity for reinvestment.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.30B1.14B900.25M678.32M523.38M
Gross Profit160.79M324.13M269.51M206.61M164.20M
EBITDA101.43M82.43M93.32M102.99M60.48M
Net Income8.12M3.21M28.60M47.50M20.95M
Balance Sheet
Total Assets876.76M785.99M655.57M555.71M372.15M
Cash, Cash Equivalents and Short-Term Investments89.68M103.01M93.79M111.47M56.06M
Total Debt288.19M285.52M219.56M197.57M129.82M
Total Liabilities682.85M578.21M440.38M363.88M269.27M
Stockholders Equity189.97M203.00M210.03M191.37M102.34M
Cash Flow
Free Cash Flow81.00M42.52M12.12M29.55M54.16M
Operating Cash Flow98.67M76.86M36.07M47.91M64.96M
Investing Cash Flow-35.13M-50.78M-43.50M-25.87M-28.47M
Financing Cash Flow-74.28M-15.89M-10.98M33.02M-27.53M

adesso AG Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price89.40
Price Trends
50DMA
87.97
Positive
100DMA
91.24
Negative
200DMA
87.94
Positive
Market Momentum
MACD
0.18
Negative
RSI
50.25
Neutral
STOCH
45.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ADN1, the sentiment is Neutral. The current price of 89.4 is above the 20-day moving average (MA) of 87.58, above the 50-day MA of 87.97, and above the 200-day MA of 87.94, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 50.25 is Neutral, neither overbought nor oversold. The STOCH value of 45.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:ADN1.

adesso AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
€583.12M13.5816.30%2.26%8.63%-3.90%
72
Outperform
€525.12M23.1317.51%27.05%228.63%
69
Neutral
€251.09M15.6315.04%3.17%2.26%41.87%
68
Neutral
€508.19M20.3016.57%1.64%11.11%-8.72%
67
Neutral
€574.61M73.554.09%0.85%13.30%
66
Neutral
€830.43M32.704.13%3.80%3.76%-22.05%
63
Neutral
£506.53M23.52-8.45%172.52%4.53%-18.72%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:ADN1
adesso AG
88.00
-0.15
-0.17%
DE:COK
CANCOM SE
26.15
-4.81
-15.55%
DE:SHF
SNP Schneider Neureither & Partner AG (Schneider Neureither & Partner AG)
72.20
19.60
37.26%
DE:GFT
GFT Technologies
18.56
-5.03
-21.34%
DE:A1OS
All for One Group
51.20
-2.72
-5.04%
DE:D6H
DATAGROUP
61.00
20.91
52.14%
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: Jul 23, 2025