FRIWO AG (CEA) AI Stock Analysis

• Market Cap: €69.72M
• Dividend Yield: N/A
• Average Volume (3M): 806.00
• Price to Earnings (P/E): 9.5
• 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: 57 Neutral
• Price Target: €9.00 ▲(46.34% Upside)

The score is held back mainly by weak financial performance (revenue decline, ongoing losses, and high leverage). This is partly offset by strong technical momentum and a moderate P/E valuation.

Positive Factors

Improved operating cash flow

FRIWO generated positive operating cash flow and improved free cash flow in 2024, providing a more durable liquidity buffer. This strengthens near-term funding for working capital and capex, lowering immediate refinancing pressure and supporting execution of turnaround initiatives.

Diversified end-market exposure

FRIWO's product mix spans industrial, medical and telecom markets, reducing reliance on a single cyclical sector. Structural demand for energy-efficient power supplies and customized charging solutions supports steadier order flow and long-term opportunities across resilient end markets.

Gross margin recovery

The improvement in gross margin indicates better pricing or cost control at the product level. Sustained higher gross margins are necessary to absorb fixed costs and are a prerequisite for returning to positive EBIT/EBITDA once revenue declines stabilize.

Negative Factors

Sharp revenue decline

A nearly 50% decline in revenues over two years materially reduces scale benefits and revenue visibility. Persistent top-line contraction impairs fixed-cost absorption, weakens supplier and partner leverage, and makes restoring sustainable margins and growth more challenging.

Persistent losses and negative margins

Ongoing net losses and negative operating margins erode equity and limit reinvestment capacity. Even with cash flow improvements, continued operating losses increase the risk of covenant breaches, reduce strategic flexibility, and make long-term profitability recovery uncertain.

High leverage and weak equity ratio

A highly leveraged balance sheet raises refinancing and solvency risk, especially amid revenue decline. Elevated debt limits the company's ability to fund growth or R&D, increases interest burden, and heightens vulnerability to demand shocks or rising rates.

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: revenues have declined sharply (2022–2024) and the company remains loss-making with negative EBIT/EBITDA margins. The balance sheet adds risk due to high leverage and a deteriorating equity ratio, partially offset by improved 2024 free cash flow and positive operating cash flow.

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: Neutral
• 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 6.93, above the 50-day MA of 5.96, and below the 200-day MA of 6.95, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 55.43 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	57 Neutral	€69.72M	9.53	83.64%	―	0.20%	―
HNL	54 Neutral	€51.65M	-16.30	-15.84%	―	-2.20%	-153.32%
CFC	50 Neutral	€11.04M	―	―	―	―	―
CY1K	48 Neutral	€45.43M	-27.73	-5.10%	―	―	―