adesso AG (DE:ADN1)
XETRA:ADN1
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adesso AG
(XETRA:ADN1)
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Rating:56Neutral
Price Target:
€55.00
▼(-11.15% Downside)
Action:Reiterated
Date:06/11/26
The score is supported by improving financial performance with solid free cash flow and a reasonable valuation. It is held back by elevated leverage and very weak technicals (below major moving averages with negative momentum), which currently dominate the near-term setup.
Positive Factors
Multi‑year Revenue Growth
Sustained revenue growth over multiple years indicates durable demand for adesso's services and successful client engagement. A larger revenue base improves scale economics, supports investment in capabilities, and reduces per-project fixed-cost absorption risk across business cycles.
Negative Factors
Elevated Leverage
High debt relative to equity reduces balance-sheet flexibility and raises refinancing and interest-rate sensitivity. Elevated leverage constrains capacity for opportunistic investment or absorbing margin shocks, making the business more exposed if cash flows weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi‑year Revenue Growth
Sustained revenue growth over multiple years indicates durable demand for adesso's services and successful client engagement. A larger revenue base improves scale economics, supports investment in capabilities, and reduces per-project fixed-cost absorption risk across business cycles.
Read all positive factors
adesso AG (ADN1) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€348.61M
Dividend Yield0.85%
Average Volume (3M)8.63K
Price to Earnings (P/E)15.3
Beta (1Y)1.17
Revenue Growth13.29%
EPS Growth214.17%
CountryDE
Employees10,320
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)3.76
Shares Outstanding6,528,220
10 Day Avg. Volume6,464
30 Day Avg. Volume8,626
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)2.99
Price to Sales (P/S)0.39
P/FCF Ratio9.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€98.25Price Target Upside58.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)4.38
Revenue Forecast (FY)€1.63B
adesso AG Business Overview & Revenue Model
Company Description
adesso SE functions as a technology services firm, specializing in IT consulting and software engineering across Germany, Austria, Switzerland, and internationally. The company organizes its operations into two main divisions: IT Services and IT S...
How the Company Makes Money
adesso primarily makes money by delivering billable IT services and project work for clients. Key revenue streams generally include: (1) Consulting and professional services fees earned from advising clients on IT strategy, architecture, and digit...
adesso AG Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 14, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial performance: strong revenue growth, a sizable 30% increase in EBITDA, material uplift in license and SaaS revenues, improved profitability metrics, and constructive guidance for 2026. However, material execution risks remain—most notably elevated net working capital and weak free cash flow, an underperforming IT Solutions segment still in turnaround, pressure on daily rates, and a high effective tax rate. Management has clear initiatives (utilization, daily rates, platform monetization, AI-driven services) and provided transparent restatement disclosures, but several operational and cash-conversion issues temper the upbeat top-line and EBITDA momentum.Positive Updates
Strong Revenue Performance
Sales for FY2025 reported at EUR 1.466–1.47 billion with management citing strong growth (transcript references: +14% 'purely organic' and an alternate +40% comparison to the prior year figure of EUR 1.286 billion). Company states resilient, diversified revenue base across sectors and regions.
Negative Updates
Net Working Capital Deterioration and Cash Conversion
Net working capital increased 28% to EUR 199 million, materially above revenue growth, causing approximately EUR 20 million additional financing need. Operating cash flow reduced to EUR 85.6 million and free cash flow low at EUR 1.5 million, reflecting weaker cash conversion.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Performance
Sales for FY2025 reported at EUR 1.466–1.47 billion with management citing strong growth (transcript references: +14% 'purely organic' and an alternate +40% comparison to the prior year figure of EUR 1.286 billion). Company states resilient, diversified revenue base across sectors and regions.
Read all positive updates
Company Guidance
The company guided 2026 sales of EUR 1.6–1.7 billion (up ~9–16% vs EUR 1.466bn in 2025) and EBITDA of EUR 130–150 million (vs EUR 123.6m in 2025), with only a modest improvement in EBIT margin from the 2025 level (EBIT margin 3.4%, EBITDA margin 8.4% in 2025); management expects stabilized capacity utilization, continued slower hiring, improved profitability supported by two additional working days in H2 Germany, and is targeting a mid‑term EBITDA margin of 11–13%, while flagging macro risks from the Middle East war, energy/commodity pressures and supply constraints but highlighting AI‑driven modernization as a potential upside.adesso AG Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
60
Neutral
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.47B | 1.30B | 1.14B | 900.25M | 678.32M |
| Gross Profit | 196.05M | 160.79M | 146.66M | 269.51M | 102.36M |
| EBITDA | 117.39M | 101.43M | 82.43M | 93.32M | 102.99M |
| Net Income | 18.15M | 8.12M | 3.21M | 28.60M | 47.50M |
Balance Sheet | |||||
| Total Assets | 936.84M | 876.76M | 785.99M | 655.57M | 555.71M |
| Cash, Cash Equivalents and Short-Term Investments | 84.57M | 89.68M | 103.01M | 90.96M | 111.47M |
| Total Debt | 331.14M | 325.18M | 285.52M | 219.56M | 197.57M |
| Total Liabilities | 744.14M | 682.85M | 578.21M | 440.38M | 363.88M |
| Stockholders Equity | 189.70M | 189.97M | 203.00M | 210.03M | 185.16M |
Cash Flow | |||||
| Free Cash Flow | 61.28M | 81.00M | 42.52M | 12.12M | 29.55M |
| Operating Cash Flow | 74.80M | 98.67M | 76.86M | 36.07M | 47.91M |
| Investing Cash Flow | -76.15M | -35.13M | -50.78M | -43.50M | -25.87M |
| Financing Cash Flow | -3.33M | -74.28M | -15.89M | -10.98M | 32.65M |
adesso AG Technical Analysis
Negative
61.90
Price Trends
57.79
Negative
62.20
Negative
76.98
Negative
Market Momentum
-0.62
Positive
39.80
Neutral
6.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ADN1, the sentiment is Negative. The current price of 61.9 is above the 20-day moving average (MA) of 57.86, above the 50-day MA of 57.79, and below the 200-day MA of 76.98, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 6.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:ADN1.
adesso AG Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €562.06M | 15.87 | 13.18% | 2.65% | 1.76% | -18.57% | |
69 Neutral | €178.28M | 8.89 | 14.30% | 2.51% | -11.57% | 191.97% | |
65 Neutral | €732.86M | 23.02 | 6.15% | 3.78% | 0.21% | 33.16% | |
60 Neutral | €463.39M | 9.46 | 28.91% | 1.29% | 2.04% | 14.78% | |
56 Neutral | €348.61M | 15.33 | 12.82% | 0.85% | 13.29% | 214.17% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | €152.45M | 26.23 | 6.96% | 3.99% | -3.10% | -65.33% |
* General Sector Average
DE:ADN1
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-39.21%
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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.