Ad Pepper Media International NV (APM) AI Stock Analysis

• Market Cap: €72.09M
• Dividend Yield: N/A
• Average Volume (3M): 6.80K
• Price to Earnings (P/E): 31.3
• Beta (1Y): 0.27
• Revenue Growth: 90.24%
• EPS Growth: 289.96%
• Country: DE
• Employees: 205
• Sector: General
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.02
• Shares Outstanding: 25,498,440
• 10 Day Avg. Volume: 9,484
• 30 Day Avg. Volume: 6,800
• PEG Ratio: -0.07
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 21.33
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €3.00 ▲(9.49% Upside)

The score is driven primarily by improving financial performance—especially strong free cash flow and a return to profitability—tempered by thin margins and increased leverage. Technicals are mixed with a weak longer-term trend, and valuation is a headwind given the higher P/E and no dividend support.

Positive Factors

Free Cash Flow Strength

Sustained free cash flow near reported net income indicates high earnings quality and internal funding ability. This durable cash generation can finance growth, technology and marketing investments, or debt reduction without relying on equity raises, boosting long-term operational flexibility.

Revenue Recovery and Profitability

A consistent return to revenue growth and positive profitability signals the business model regained traction post-losses. This structural improvement supports reinvestment in core products and client relationships, reducing execution risk and improving prospects for sustained earnings expansion.

Equity Base and ROE

A solid equity base and mid-single-digit ROE provide a capital buffer against shocks and underpin strategic flexibility. Positive ROE shows the company is generating returns from shareholder capital, enabling measured reinvestment and supporting long-term solvency versus peers with weaker capitalization.

Negative Factors

Thin Profit Margins

Very slim margins leave earnings highly sensitive to modest cost increases or small demand declines. Over the medium term this constrains the firm’s ability to build retained earnings, invest in product development, and absorb competitive pricing pressure without eroding profitability.

Rising Leverage

Higher leverage versus historical lows reduces financial flexibility and raises interest and refinancing risks. In an industry sensitive to ad spend cycles, elevated debt can amplify downturn impacts, limit capital allocation choices, and constrain capacity to invest consistently in technology or client acquisition.

Modest Cash Conversion Versus Revenue

Although FCF improved sharply from a low base, modest cash conversion relative to revenue means cash generation may not scale proportionally with sales. If conversion weakens or growth requires higher working capital, reported free cash flow and funding capacity could deteriorate materially.

Ad Pepper Media International NV Business Overview & Revenue Model

Company Description

ad pepper media International N.V., through its subsidiaries, provides online marketing services in Germany, Italy, France, Spain, Switzerland, the Netherlands, the United Kingdom, and internationally. It operates through three segments: ad pepper, ad agents, and Webgains. The ad pepper segment provides performance marketing agency services specializing in lead generation. It operates iLead, a platform that enables the generation of customized campaigns for customers. The ad agents segment offers marketing and sales solutions in various digital channels and on devices. This segment specializes in concept, management, and optimization; affiliate management; product data management; social media advertising; analytics and data; advertising media–banner and video ads; display advertising; consulting; and social media advertising, as well as Amazon and Google marketing platform. The Webgains segment provides affiliate marketing network solutions. ad pepper media International N.V. was founded in 1999 and is headquartered in Nuremberg, Germany.

How the Company Makes Money

Ad Pepper Media International NV generates revenue through multiple streams, primarily focusing on digital advertising services. The company earns money by charging clients for advertising placements and performance-based campaigns, where they assess the success of an ad based on metrics like clicks or conversions. Key revenue streams include display advertising, search engine marketing, and affiliate marketing commissions. Additionally, partnerships with various online platforms and advertisers enhance their market reach and operational capabilities, contributing to their overall earnings. The company's data-driven approach allows for improved targeting and effectiveness of campaigns, further driving revenue growth.

Ad Pepper Media International NV Financial Statement Overview

Summary

Solid recovery with strong TTM revenue growth (+12.1%) and a return to profitability, plus notably strong free cash flow (~€4.9m) with decent earnings quality (FCF ~0.89x net income). Offsetting this, net/EBIT margins remain thin (~1.9%/~3.0%) and leverage has risen (debt-to-equity ~0.38), increasing sensitivity to cost or demand shifts.

Income Statement

TTM (Trailing-Twelve-Months) revenue growth is solid (+12.1%) and profitability is positive, but margins are relatively thin (about 1.9% net and ~3.0% EBIT). The company has improved materially versus the loss-making period in 2022–2023, yet earnings power still looks sensitive to small swings in costs or demand.

Balance Sheet

Equity remains meaningful (about €25.4m in TTM (Trailing-Twelve-Months)) and returns on equity are positive (~9.3%), signaling recovery from prior negative years. The key watch-out is the step-up in debt in TTM (Trailing-Twelve-Months) (debt-to-equity ~0.38 vs ~0.07 in 2024), which increases financial risk compared with the company’s historically low-leverage profile.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) free cash flow is strong (~€4.9m) and closely tracks reported profit (free cash flow is ~0.89x net income), suggesting decent earnings quality. The very large free-cash-flow growth reflects a sharp rebound from a low base; however, cash conversion versus revenue remains modest, so sustaining current cash flow levels is the main swing factor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.06M	89.66M	21.75M	98.23M	111.59M	25.61M
Gross Profit	29.09M	20.86M	20.27M	23.70M	26.59M	24.69M
EBITDA	5.02M	3.82M	433.00K	1.22M	4.46M	6.56M
Net Income	2.08M	2.07M	-944.00K	-250.00K	2.56M	3.66M
Balance Sheet
Total Assets	72.94M	48.37M	42.94M	43.95M	46.35M	48.84M
Cash, Cash Equivalents and Short-Term Investments	27.27M	24.17M	23.36M	23.14M	20.73M	24.36M
Total Debt	9.64M	1.32M	1.29M	1.36M	1.21M	919.00K
Total Liabilities	36.46M	27.77M	24.06M	28.29M	26.26M	28.00M
Stockholders Equity	25.41M	19.71M	17.66M	14.49M	18.68M	19.68M
Cash Flow
Free Cash Flow	4.86M	2.04M	1.13M	1.71M	1.91M	2.60M
Operating Cash Flow	5.44M	2.34M	1.24M	1.93M	2.21M	3.38M
Investing Cash Flow	4.87M	3.39M	2.46M	-3.28M	-2.24M	-1.77M
Financing Cash Flow	-1.14M	-1.32M	-893.00K	-2.36M	-3.83M	-2.28M

Ad Pepper Media International NV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:APM, the sentiment is Neutral. The current price of 2.74 is below the 20-day moving average (MA) of 2.79, below the 50-day MA of 2.82, and below the 200-day MA of 3.03, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 74.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:APM.

Ad Pepper Media International NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLIQ	63 Neutral	€11.75M	-0.29	-43.92%	5.87%	―	―
APM	60 Neutral	€72.09M	31.33	9.61%	―	90.24%	289.96%
YOC	59 Neutral	€24.31M	13.81	27.12%	―	10.42%	-53.29%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SYZ	45 Neutral	€20.99M	-1.30	-46.35%	―	-13.27%	-779.38%