FRIWO AG (CEA) AI Stock Analysis

• Market Cap: €79.56M
• Dividend Yield: N/A
• Average Volume (3M): 806.00
• Price to Earnings (P/E): 10.9
• Beta (1Y): -0.12
• Revenue Growth: 0.20%
• EPS Growth: N/A
• Country: DE
• Employees: 1,206
• Sector: Industrials
• Sector Strength: 72
• Industry: Communication Equipment
• EPS (TTM): N/A
• Shares Outstanding: 8,554,496
• 10 Day Avg. Volume: 634
• 30 Day Avg. Volume: 806
• PEG Ratio: 0.68
• Price to Book (P/B): 58.29
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 115.68
• 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: 54 Neutral
• Price Target: €9.50 ▲(54.47% Upside)

The score is held back primarily by weak fundamentals—declining revenue, persistent losses, and a highly leveraged balance sheet—despite some improvement in cash flow. Technicals are supportive with strong momentum above key moving averages, but overbought RSI conditions add near-term risk. Valuation is moderate based on the provided P/E, with no dividend yield data to improve the outlook.

Positive Factors

Diversified End Markets

FRIWO's exposure across industrial, medical and telecom end-markets plus modular power and charging products creates durable demand diversity. This reduces reliance on any single cyclical sector, supports recurring orders from long-term partners, and mitigates revenue volatility.

Improving Cash Generation

Positive operating cash flow and improved free cash flow in 2024 indicate the business can generate internal liquidity. Sustained cash generation reduces refinancing risk, helps cover capex and working capital, and provides runway to invest in product development or restructure operations.

Gross Margin Recovery

An improvement in gross margin from 10% to 12.9% points to better pricing, cost control, or a favorable product mix. If sustained, higher gross margins improve the path to operating profitability and make the business less sensitive to revenue fluctuations over multiple quarters.

Negative Factors

High Leverage

The balance sheet shows elevated leverage with debt far exceeding equity, which constrains strategic flexibility. High debt raises interest and refinancing risk, limits ability to fund R&D or capex internally, and heightens vulnerability to downturns or rising rates over the medium term.

Declining Revenue Trend

A steep revenue decline from €184.9M to €93M over two years signals loss of scale and possible market share erosion. Protracted top-line shrinkage impairs fixed-cost absorption, pressures margins and cash flow, and makes restoring profitable growth structurally more challenging.

Sustained Losses and Negative Operating Margins

Persistent net losses and negative EBIT/EBITDA margins erode equity and limit reinvestment capacity. Ongoing unprofitability increases reliance on external funding, reduces strategic options, and raises questions about the competitiveness and scalability of the current business model over several quarters.

FRIWO AG Business Overview & Revenue Model

Company Description

FRIWO AG develops, manufactures, and sells power supplies units and drive solutions worldwide. The company's products include smart components for electric drives; and chargers, battery packs, power packs, and LED drivers. It also offers plug-in, desktop, open frame, flush-mounted, USB, and customized power supplies; drive system solutions, such as motor and vehicle control units, drive units, service software, chargers, battery packs, and displays; and end-to-end contract manufacturing services for electronic assemblies and equipment. The company serves tools, industrial, medical, and e-mobility sectors. It also offers its products online. The company was formerly known as CEAG AG and changed its name to FRIWO AG in 2009. FRIWO AG was founded in 1967 and is headquartered in Ostbevern, Germany.

How the Company Makes Money

FRIWO AG generates revenue through the sale of its power supply products and solutions across multiple sectors, including industrial, medical, and telecommunications. The company's revenue model is primarily based on product sales, where it earns income from both standard and customized power supply units. In addition to direct sales, FRIWO also benefits from long-term partnerships with key players in various industries, which provide consistent orders and revenue streams. The company may also explore opportunities in after-sales services, such as maintenance and support, contributing to its overall earnings. Significant factors influencing its financial performance include technological advancements, the growing demand for efficient power solutions, and the expansion of its global market presence.

FRIWO AG Financial Statement Overview

Summary

Financial performance is weak overall: revenues have declined sharply (2022 €184.9M to 2024 €93M) and losses persist with negative EBIT/EBITDA margins. Balance sheet risk is elevated due to high leverage (debt far exceeds equity) and negative ROE, though cash flow shows a partial offset with improved free cash flow and positive operating cash flow in 2024.

Income Statement

FRIWO AG's income statement reflects a challenging period with declining revenues over the past three years, from €184.9M in 2022 to €93M in 2024. The company has faced consistent net losses, with the net profit margin remaining negative. Despite an improvement in gross profit margin from 10% in 2023 to 12.9% in 2024, the EBIT and EBITDA margins have been negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a precarious financial position with a high debt-to-equity ratio, as total debt far exceeds stockholders' equity. The equity ratio decreased significantly over time, highlighting increased leverage risk. Return on equity has been negative due to net losses, underscoring profitability challenges.

Cash Flow

FRIWO AG's cash flow statement indicates improved free cash flow in 2024, driven by positive operating cash flow. However, the free cash flow to net income ratio is strained by ongoing net losses. The company has managed to generate operating cash flow, but capital expenditures remain a burden.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.08M	93.02M	111.08M	184.87M	100.55M	99.36M
Gross Profit	15.37M	11.97M	11.07M	17.66M	4.57M	6.93M
EBITDA	14.31M	36.00K	-3.15M	8.92M	-4.08M	371.00K
Net Income	8.66M	-6.25M	-11.52M	512.00K	-10.55M	-5.51M
Balance Sheet
Total Assets	66.76M	63.69M	71.22M	104.97M	75.69M	61.33M
Cash, Cash Equivalents and Short-Term Investments	21.71M	7.91M	4.70M	6.89M	2.87M	4.20M
Total Debt	30.72M	33.04M	34.32M	38.42M	36.45M	28.97M
Total Liabilities	56.85M	60.35M	61.57M	80.06M	66.72M	56.58M
Stockholders Equity	9.91M	3.35M	9.65M	24.91M	8.97M	4.75M
Cash Flow
Free Cash Flow	19.02M	1.69M	1.21M	-7.67M	-20.35M	-6.17M
Operating Cash Flow	19.82M	3.11M	4.16M	-2.81M	-17.74M	-3.10M
Investing Cash Flow	1.36M	817.00K	-3.85M	-5.83M	-2.58M	-2.67M
Financing Cash Flow	-6.45M	-3.23M	-2.50M	12.65M	18.99M	4.11M

FRIWO AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.15
• 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:CEA, the sentiment is Positive. The current price of 6.15 is below the 20-day moving average (MA) of 6.44, above the 50-day MA of 5.66, and below the 200-day MA of 6.95, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 83.78 is Negative, neither overbought nor oversold. The STOCH value of 63.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:CEA.

FRIWO AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CEA	54 Neutral	€79.56M	10.87	83.64%	―	0.20%	―
CFC	50 Neutral	€12.02M	―	―	―	―	―
CY1K	48 Neutral	€48.53M	-29.62	-5.10%	―	―	―
HNL	42 Neutral	€56.38M	-17.80	-15.84%	―	-2.20%	-153.32%