Allgeier (AEIN) AI Stock Analysis

• Market Cap: €204.73M
• Dividend Yield: 2.71%
• Average Volume (3M): 8.92K
• Price to Earnings (P/E): 43.3
• Beta (1Y): 0.60
• Revenue Growth: -22.64%
• EPS Growth: -55.86%
• Country: DE
• Employees: 3,140
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): -0.07
• Shares Outstanding: 11,501,613
• 10 Day Avg. Volume: 8,646
• 30 Day Avg. Volume: 8,920
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €18.00
• Price Target Upside: -2.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: €18.50 ▲(0.27% Upside)

The overall stock score of 56 reflects mixed financial performance with declining revenue and cash flow challenges, coupled with a bearish technical outlook. The high P/E ratio indicates overvaluation, though the dividend yield offers some compensation. Improvements in leverage and operational efficiency are positive, but the lack of strong market momentum and high valuation are significant concerns.

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 consulting to clients across different sectors. The company's revenue model is largely based on project-based contracts, where they charge clients for software development, system integration, and IT consulting services. Additionally, Allgeier earns income from recurring revenue models through maintenance and support services for the solutions they implement. Significant partnerships with key technology providers and a focus on high-demand areas such as cloud computing and digital transformation contribute to its revenue growth. The company may also engage in strategic acquisitions to expand its service offerings and client base, further enhancing its financial performance.

Allgeier Financial Statement Overview

Summary

Allgeier presents a mixed financial picture. Income statement metrics reveal declining revenues but stable profitability margins, while the balance sheet shows manageable leverage and solid equity financing. The cash flow analysis is positive, with strong free cash flow growth and efficient cash utilization. Overall, the company demonstrates operational stability with opportunities to enhance revenue growth and profitability.

Income Statement

Allgeier's income statement reflects challenges in maintaining revenue growth. The TTM revenue of €385.77 million is down from the previous annual figure of €402.96 million, indicating a negative growth trajectory. Gross profit margin stands at 30.5% and net profit margin at 1.7% for TTM, which are moderate for the industry. EBIT and EBITDA margins are 7.0% and 13.6% respectively, showing decent operational efficiency despite declining revenues.

Balance Sheet

The balance sheet shows a stable debt-to-equity ratio of 0.23 for TTM, reflecting manageable leverage. The equity ratio is 29.9%, indicating a solid proportion of equity financing. Return on equity is 4.9%, which is relatively low, suggesting room for improvement in profitability from shareholders' equity.

Cash Flow

Allgeier's cash flow statements demonstrate positive trends with a free cash flow growth rate of 25.2% TTM. The operating cash flow to net income ratio is 6.4, highlighting strong cash generation relative to net earnings. The free cash flow to net income ratio of 4.8 also suggests efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	364.97M	402.96M	488.82M	480.36M	403.61M	763.85M
Gross Profit	120.50M	127.05M	138.31M	119.45M	84.76M	191.22M
EBITDA	50.89M	55.68M	59.50M	62.87M	42.05M	28.34M
Net Income	4.67M	7.34M	13.08M	21.62M	11.80M	12.54M
Balance Sheet
Total Assets	449.24M	470.68M	524.76M	512.82M	484.99M	243.90M
Cash, Cash Equivalents and Short-Term Investments	34.43M	57.53M	83.04M	87.42M	69.41M	60.80M
Total Debt	31.65M	185.73M	199.88M	193.30M	182.93M	59.62M
Total Liabilities	265.80M	276.49M	335.56M	332.48M	322.08M	138.38M
Stockholders Equity	127.85M	139.46M	138.57M	131.73M	114.94M	102.06M
Cash Flow
Free Cash Flow	31.36M	25.77M	17.02M	24.34M	23.88M	83.94M
Operating Cash Flow	41.29M	37.80M	31.59M	31.68M	29.10M	95.71M
Investing Cash Flow	-16.63M	-26.77M	-36.71M	-17.93M	-149.93M	-166.35M
Financing Cash Flow	-30.70M	-27.20M	5.95M	-1.18M	95.34M	39.70M

Allgeier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 18.45 is above the 20-day moving average (MA) of 17.66, below the 50-day MA of 18.56, and above the 200-day MA of 17.38, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 66.13 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
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
AEIN	56 Neutral	€204.73M	43.31	4.26%	2.71%	-22.64%	-55.86%
0JCO	―	€225.68M	13.90	15.12%	―	―	―
0M2T	―	€31.52M	―	-31.92%	―	―	―
0CHZ	―	€110.88M	―	-3.48%	―	―	―
0NJB	―	€529.48M	25.59	16.15%	―	―	―
OBS	66 Neutral	€55.40M	15.82	10.88%	1.71%	2.84%	21.48%