Brockhaus Technologies AG (BKHT) AI Stock Analysis

• Market Cap: €142.30M
• Dividend Yield: 1.93%
• Average Volume (3M): 8.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: 8.80%
• EPS Growth: -1561.66%
• Country: DE
• Employees: 391
• Sector: Technology
• Sector Strength: 88
• Industry: Asset Management
• EPS (TTM): 0.17
• Shares Outstanding: 10,947,637
• 10 Day Avg. Volume: 3,354
• 30 Day Avg. Volume: 8,140
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 7.13
• 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: €30.00
• Price Target Upside: 166.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: €10.00 ▼(-11.11% Downside)

The overall stock score is primarily impacted by poor financial performance, with declining revenue and profitability, high leverage, and negative cash flow growth. Technical analysis further supports a bearish outlook with oversold conditions and downward trends. Valuation metrics, including a negative P/E ratio, indicate unattractive valuation. These factors collectively suggest significant risks for investors.

Positive Factors

Business Model Strength

The diversified revenue streams from software licensing, subscriptions, and consulting provide a stable income base, reducing reliance on any single source and enhancing resilience against market fluctuations.

Product Innovation

Continuous investment in R&D ensures that Brockhaus Technologies AG can maintain a competitive edge by offering cutting-edge solutions, attracting new clients, and retaining existing ones.

Market Position

Strategic partnerships expand market reach and capability, strengthening Brockhaus Technologies AG's position in the industry and providing opportunities for growth and collaboration.

Negative Factors

Declining Revenue

A negative revenue growth rate indicates challenges in maintaining sales momentum, which can impact long-term financial health and investor confidence if not addressed.

High Leverage

High leverage can strain financial resources, limit strategic flexibility, and increase vulnerability to economic downturns, posing risks to sustainable growth.

Negative Cash Flow Growth

Negative cash flow growth suggests declining cash generation, which can hinder the company's ability to invest in growth opportunities and meet financial obligations.

Brockhaus Technologies AG Business Overview & Revenue Model

Company Description

Brockhaus Technologies AG is a private equity firm. The firm specializing in middle market, later stage, mature, growth capital and buyout investments. It operates as a technology holding company that acquires and holds majority stakes in growth companies in the German speaking region. Brockhaus Technologies AG was founded in 2017 and is based in Frankfurt am Main, Germany.

How the Company Makes Money

Brockhaus Technologies AG generates revenue through multiple streams, primarily from software licensing, subscription fees for its cloud-based services, and consulting engagements. The company charges clients for the use of its proprietary software solutions, which are tailored to meet specific industry needs. Additionally, BKHT earns revenue from long-term contracts and service agreements related to software implementation and ongoing support. Significant partnerships with key industry players and technology providers further enhance its market reach and capability, contributing to its overall earnings. The company also invests in research and development to continuously innovate its product offerings, which helps maintain a competitive edge and attract new clients.

Brockhaus Technologies AG Financial Statement Overview

Summary

Brockhaus Technologies AG faces challenges with declining revenue, negative profitability, and high leverage. The income statement shows a negative revenue growth rate and net profit margin, while the balance sheet reflects high debt levels and negative returns on equity. Cash flow generation is also declining, with negative free cash flow growth. The company needs to address these issues to improve its financial health.

Income Statement

Brockhaus Technologies AG shows a declining revenue trend in the TTM period with a negative revenue growth rate of -5.52%. The company has a negative net profit margin of -26.82%, indicating profitability challenges. Gross profit margin remains relatively stable at 56.86%, but EBIT and EBITDA margins are low at -9.07% and 6.22%, respectively. Overall, the income statement reflects declining revenue and profitability issues.

Balance Sheet

The company has a high debt-to-equity ratio of 1.32, indicating significant leverage. Return on equity is negative at -24.79%, reflecting poor returns for shareholders. The equity ratio stands at 31.48%, suggesting a moderate level of equity financing. The balance sheet shows high leverage and negative returns, posing potential risks.

Cash Flow

Free cash flow growth is negative at -22.95% in the TTM period, indicating declining cash generation. The operating cash flow to net income ratio is 0.32, and the free cash flow to net income ratio is 0.87, showing some cash flow coverage but not sufficient to offset net losses. Overall, the cash flow statement highlights declining free cash flow and limited cash coverage of net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	210.10M	200.15M	186.63M	142.71M	39.04M	51.58M
Gross Profit	122.25M	99.95M	118.39M	91.72M	30.17M	38.55M
EBITDA	3.83M	12.95M	52.42M	51.79M	-4.40M	8.42M
Net Income	-56.49M	-55.55M	-5.09M	49.02M	-15.88M	-6.73M
Balance Sheet
Total Assets	609.89M	798.32M	659.18M	655.51M	614.50M	306.42M
Cash, Cash Equivalents and Short-Term Investments	43.16M	60.91M	73.11M	96.97M	45.61M	123.94M
Total Debt	252.76M	261.60M	272.19M	248.95M	266.15M	52.81M
Total Liabilities	383.93M	561.13M	358.27M	340.17M	359.58M	82.98M
Stockholders Equity	192.01M	200.29M	256.56M	272.70M	222.04M	223.44M
Cash Flow
Free Cash Flow	14.89M	34.14M	30.04M	31.76M	-8.67M	4.25M
Operating Cash Flow	20.35M	36.01M	34.80M	34.91M	-6.21M	5.69M
Investing Cash Flow	-8.98M	-8.22M	-9.90M	53.03M	-143.96M	-1.41M
Financing Cash Flow	-42.21M	-36.94M	-42.59M	-46.70M	55.67M	102.31M

Brockhaus Technologies AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BKHT, the sentiment is Negative. The current price of 11.25 is below the 20-day moving average (MA) of 12.09, below the 50-day MA of 11.93, and below the 200-day MA of 14.36, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 42.38 is Neutral, neither overbought nor oversold. The STOCH value of 54.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:BKHT.

Brockhaus Technologies AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
B7E	63 Neutral	€84.79M	4.15	8.40%	3.46%	-29.22%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
A7A	48 Neutral	€127.96M	―	―	―	―	―
BKHT	41 Neutral	€142.30M	-2.44	―	1.93%	8.80%	-1561.66%