ADVA Optical Networking (ADV) AI Stock Analysis

• Market Cap: €1.08B
• Dividend Yield: 2.5%
• Average Volume (3M): 6.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: -36.66%
• EPS Growth: -346.95%
• Country: DE
• Employees: 2,077
• Sector: Technology
• Sector Strength: 94
• Industry: Communication Equipment
• EPS (TTM): -0.29
• Shares Outstanding: 52,047,500
• 10 Day Avg. Volume: 4,444
• 30 Day Avg. Volume: 6,302
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €21.50
• Price Target Upside: 3.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: €21.50 ▲(3.37% Upside)

The overall stock score reflects mixed financial performance and technical analysis indicators. Significant challenges in profitability and revenue growth weigh heavily on the score, while positive cash flow management and current stock trends provide some optimism. The lack of earnings call data and corporate events means these factors do not influence the score.

ADVA Optical Networking Business Overview & Revenue Model

Company Description

ADVA Optical Networking (ADV) is a prominent global provider of innovative networking solutions, specializing in optical and Ethernet technologies. The company operates in the telecommunications sector, focusing on enhancing the performance and efficiency of data networks for service providers, enterprises, and data centers. ADVA's core products include optical transport networks, Ethernet access solutions, and network synchronization technologies, which empower customers to optimize their network infrastructure and meet the demands of modern digital communications.

How the Company Makes Money

ADVA Optical Networking generates revenue primarily through the sale of its advanced networking hardware and software solutions. The company's key revenue streams include product sales, ongoing maintenance contracts, and professional services such as installation and support. Additionally, ADVA forms strategic partnerships with telecommunications companies and technology providers, allowing it to expand its market reach and enhance its product offerings. These collaborations often lead to joint ventures or bundled solutions, contributing to a diversified revenue base. The increasing demand for high-speed connectivity and cloud-based services further strengthens ADVA's financial performance.

ADVA Optical Networking Financial Statement Overview

Summary

ADVA Optical Networking demonstrates a mixed financial performance with significant challenges in profitability and revenue growth. Despite these challenges, a strong equity foundation and effective cash flow management contribute positively.

Income Statement

ADVA Optical Networking has shown fluctuating revenue trends with a significant revenue decline in 2024, leading to a negative net margin and EBIT margin. The company has struggled with profitability as evidenced by the negative net income and EBIT in the latest period, indicating ongoing challenges in achieving operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, suggesting a balanced approach to leverage. However, the decrease in stockholders' equity over recent years may signal potential financial instability. Despite these concerns, the equity ratio remains robust, reflecting a solid asset foundation.

Cash Flow

Cash flow generation has been relatively strong, with positive free cash flow in the latest year, indicating effective cash management. The operating cash flow to net income ratio is favorable, showing cash flow strength despite negative net income, which highlights the company's ability to generate cash from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	438.08M	613.67M	712.11M	603.32M	564.96M
Gross Profit	156.97M	219.49M	238.13M	218.56M	196.54M
EBITDA	2.12M	73.86M	91.55M	118.48M	92.27M
Net Income	-62.70M	-14.51M	18.13M	59.22M	20.31M
Balance Sheet
Total Assets	670.00M	657.82M	647.91M	601.52M	499.97M
Cash, Cash Equivalents and Short-Term Investments	27.04M	30.55M	58.07M	109.85M	64.73M
Total Debt	97.22M	96.89M	77.63M	72.82M	90.43M
Total Liabilities	281.84M	279.83M	278.83M	261.61M	236.75M
Stockholders Equity	388.17M	377.99M	369.08M	339.91M	263.22M
Cash Flow
Free Cash Flow	52.35M	-30.62M	-58.32M	58.98M	38.76M
Operating Cash Flow	63.05M	37.61M	14.84M	123.25M	97.14M
Investing Cash Flow	-81.38M	-64.03M	-73.08M	-64.27M	-58.35M
Financing Cash Flow	12.56M	-161.00K	5.39M	-14.80M	-26.77M

ADVA Optical Networking Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ADV, the sentiment is Positive. The current price of 20.8 is above the 20-day moving average (MA) of 20.69, above the 50-day MA of 20.47, and above the 200-day MA of 19.83, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 65.06 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:ADV.

ADVA Optical Networking Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELG	75 Outperform	€1.50B	11.91	23.45%	1.14%	-2.03%	20.37%
AIXA	61 Neutral	€1.53B	14.07	13.52%	1.11%	0.59%	-11.99%
Sector *	61 Neutral	€6.51B	18.05	3.81%	2.09%	2.46%	-30.42%
YSN	59 Neutral	€1.33B	41.72	24.42%	1.34%	12.26%	15.55%
COK	58 Neutral	€716.97M	28.23	3.11%	4.40%	3.76%	-22.05%
ADV	56 Neutral	€1.08B	―		2.50%	-36.66%	-346.95%
S92	52 Neutral	€729.39M	5.94	-33.48%	2.38%	-22.76%	-222.81%