Allgeier (AEIN) AI Stock Analysis

• Market Cap: €209.90M
• Dividend Yield: 2.46%
• Average Volume (3M): 9.06K
• Price to Earnings (P/E): 44.8
• Beta (1Y): 0.62
• Revenue Growth: -26.34%
• EPS Growth: -101.49%
• Country: DE
• Employees: 3,140
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.14
• Shares Outstanding: 11,501,613
• 10 Day Avg. Volume: 14,323
• 30 Day Avg. Volume: 9,065
• PEG Ratio: -0.54
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 6.69
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €20.00 ▼(-1.48% Downside)

The overall stock score reflects a mixed outlook. Strong technical momentum and improved financial stability are positive factors. However, significant profitability challenges and a negative P/E ratio weigh heavily on the valuation. The dividend yield offers some compensation, but addressing profitability is crucial for future growth.

Positive Factors

Debt Position

The significant reduction in debt enhances financial stability, providing the company with more flexibility to invest in growth opportunities and withstand economic fluctuations.

Cash Flow Generation

Strong cash flow growth suggests efficient cash management, enabling the company to fund operations, invest in new projects, and potentially return value to shareholders.

Gross Profit Margin

An improved gross profit margin indicates better cost management and pricing strategies, which can enhance profitability and competitiveness in the long term.

Negative Factors

Revenue Decline

A declining revenue trend poses a challenge to growth and market position, potentially impacting the company's ability to invest in innovation and maintain competitive advantages.

Profitability Challenges

Negative net profit margins highlight ongoing profitability issues, which could strain financial resources and hinder long-term growth and shareholder returns.

Return on Equity

Negative return on equity suggests inefficiencies in generating profits from shareholders' investments, potentially affecting investor confidence and future capital raising.

Allgeier Business Overview & Revenue Model

Company Description

Allgeier SE provides information technology (IT) solutions and software services in Germany. It operates in two segments, Enterprise IT and mgm technology partners. The company provides personnel services; and software lifecycle services comprising business analysis, application development, software product engineering, enterprise application integration, testing and QA, verification and validation, application management, helpdesk, support, and software training services; and intelligence and data warehouse solutions, as well as implements packaged solutions. It also offers near shore/offshore delivery services; big data/business intelligence services; industry solutions and cloud services; managed and application management services; mobile enterprise/application services; and process and IT consulting services, such as operational assessment, business process redesign, investigating and strategizing IT integration and implementation, business process implementation, strategic IT management, strategy and change, risk management, and project/program management and PMO. In addition, the company provides IT security services; enterprise content management and collaboration services comprising support and control of business processes, integration in existing IT environments, process consultation, image and data management system, integration of interactive enterprise 2.0 and Web 2.0 elements, and customizing and individual development; ERP solutions; and IT infrastructure services consisting of consultancy, enterprise networking, enterprise security setup and management, enterprise data security, data loss prevention, virtualization and data center, and cloud services. It serves banking and insurance, industry, health, IT, logistics, media and entertainment, and telecommunications, as well as public and other sectors. Allgeier SE was founded in 1977 and is headquartered in Munich, Germany.

How the Company Makes Money

Allgeier generates revenue through multiple streams, primarily by providing IT services and solutions to businesses in various industries. Key revenue streams include project-based services, ongoing maintenance and support contracts, and subscription-based models for software solutions. The company often engages in long-term partnerships with clients, allowing for recurring revenue through sustained service agreements. Additionally, strategic alliances with other technology firms enhance its service offerings and help capture new market opportunities, further contributing to its earnings.

Allgeier Financial Statement Overview

Summary

The company faces revenue and profitability challenges, with declining revenue and negative net profit margins. However, it has improved its debt position significantly, enhancing financial stability. Strong cash flow generation provides a positive outlook, but profitability needs addressing for long-term growth.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -7.06% TTM. Gross profit margin improved to 34.78% TTM, but the net profit margin turned negative at -0.07% TTM, indicating profitability challenges. EBIT and EBITDA margins are relatively stable, though lower than previous years, reflecting operational efficiency issues.

Balance Sheet

The balance sheet indicates a significant reduction in debt, with a debt-to-equity ratio improving to 0.20 TTM from 1.33 in the previous year. However, return on equity is negative at -0.18% TTM, highlighting profitability issues. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 24.98% TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy at 0.63 TTM, and free cash flow to net income ratio is robust at 0.80 TTM, suggesting efficient cash management despite net income challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	339.20M	402.96M	488.82M	480.36M	403.61M	763.85M
Gross Profit	117.98M	127.05M	138.31M	119.45M	84.76M	191.22M
EBITDA	40.32M	55.68M	59.50M	62.87M	42.05M	28.34M
Net Income	-235.00K	7.34M	13.08M	21.62M	11.80M	12.54M
Balance Sheet
Total Assets	450.04M	470.68M	524.76M	512.82M	484.99M	243.90M
Cash, Cash Equivalents and Short-Term Investments	26.10M	57.53M	83.04M	87.42M	69.41M	60.80M
Total Debt	25.47M	185.73M	199.88M	193.30M	182.93M	59.62M
Total Liabilities	263.18M	276.49M	335.56M	332.48M	322.08M	138.38M
Stockholders Equity	129.39M	139.46M	138.57M	131.73M	114.94M	102.06M
Cash Flow
Free Cash Flow	39.19M	25.77M	17.02M	24.34M	23.88M	83.94M
Operating Cash Flow	49.27M	37.80M	31.59M	31.68M	29.10M	95.71M
Investing Cash Flow	-4.88M	-26.77M	-36.71M	-17.93M	-149.93M	-166.35M
Financing Cash Flow	-55.06M	-27.20M	5.95M	-1.18M	95.34M	39.70M

Allgeier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:AEIN, the sentiment is Positive. The current price of 20.3 is above the 20-day moving average (MA) of 17.44, above the 50-day MA of 17.56, and above the 200-day MA of 18.19, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 72.15 is Negative, neither overbought nor oversold. The STOCH value of 79.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:AEIN.

Allgeier Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBS	72 Outperform	€56.82M	16.22	10.88%	1.67%	2.84%	21.48%
SHF	69 Neutral	€541.12M	25.73	19.08%	―	20.52%	84.19%
A1OS	66 Neutral	€201.77M	17.46	―	3.94%	-1.51%	-37.04%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AEIN	61 Neutral	€209.90M	44.79	0.37%	2.46%	-26.34%	-101.49%
KSC	49 Neutral	€17.65M	―	-31.92%	―	-15.56%	-100.13%
QBY	44 Neutral	€105.64M	-32.37	-1.93%	―	-3.43%	78.06%