Allgeier (AEIN) AI Stock Analysis

• Market Cap: €257.64M
• Dividend Yield: 2.51%
• Average Volume (3M): 9.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• 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: €22.00
• Price Target Upside: 7.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: €23.50 ▲(14.63% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. While the company shows strong cash flow and reduced debt, profitability challenges weigh heavily on its valuation. Positive technical indicators suggest potential for price appreciation, but the negative P/E ratio highlights significant risks.

Positive Factors

Free Cash Flow Strength

Sustained FCF growth and a high FCF-to-net-income ratio indicate the company converts operations into cash efficiently. This durable cash generation supports debt reduction, funding of strategic initiatives, and cushions profitability volatility over the next several quarters.

Leverage Reduction

A material drop in leverage improves financial flexibility and lowers interest burden, enabling management to pursue investments or withstand shocks. Reduced covenant risk and higher balance-sheet resilience strengthen the company's long-term operational options.

Recurring & Diversified Revenue

A mix of project work, recurring maintenance/support contracts and subscription offerings builds a more predictable revenue base. Long-term client partnerships and strategic alliances support stickiness and cross-sell potential, bolstering steady revenues over time.

Negative Factors

Declining Revenue

Material top-line contraction undermines operating leverage and puts pressure on margins and cash flow sustainability. Persistent revenue declines indicate demand weakness or client churn that, if unresolved, can limit reinvestment and long-term growth prospects.

Negative Profitability

Near-zero to negative net margins and negative ROE show the company struggles to translate gross profitability into shareholder returns. Structural cost issues or mix shifts may persist, limiting retained earnings and capacity to fund strategic initiatives organically.

Earnings Decline (EPS)

A collapse in EPS signals significant earnings deterioration, raising concerns about recurring profitability and management's ability to restore growth. Continued EPS weakness hampers dividend sustainability and reduces internal funding for long-term projects without external financing.

Allgeier Business Overview & Revenue Model

Company Description

Allgeier (AEIN) is a leading technology and consulting company based in Germany, specializing in IT services and solutions across various sectors, including finance, healthcare, and telecommunications. The company offers a wide range of services, such as software development, IT consulting, digital transformation, and managed services, aimed at enhancing operational efficiency and driving innovation for its clients.

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, significant debt reduction and strong cash flow generation provide a positive outlook for financial stability.

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: 20.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 20.5 is below the 20-day moving average (MA) of 22.28, below the 50-day MA of 20.56, and above the 200-day MA of 18.88, indicating a bullish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 55.96 is Neutral, neither overbought nor oversold. The STOCH value of 61.22 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	75 Outperform	€57.29M	16.50	10.88%	1.77%	2.84%	21.48%
SHF	65 Neutral	€596.39M	22.73	19.08%	―	20.52%	84.19%
A1OS	63 Neutral	€199.78M	18.11	10.26%	3.99%	-1.50%	-37.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AEIN	59 Neutral	€257.64M	-1,087.38	0.37%	2.51%	-26.34%	-101.49%
QBY	50 Neutral	€100.91M	40.30	-1.93%	―	-3.43%	78.06%
KSC	49 Neutral	€22.88M	-1.24	-31.92%	―	-15.56%	-100.13%