CompuGroup Medical (COP) AI Stock Analysis

• Market Cap: €1.23B
• Dividend Yield: 4.26%
• Average Volume (3M): 7.13K
• Price to Earnings (P/E): 66.2
• Beta (1Y): 0.40
• Revenue Growth: 1.16%
• EPS Growth: -43.53%
• Country: DE
• Employees: 8,299
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.30
• Shares Outstanding: 53,734,577
• 10 Day Avg. Volume: 9,208
• 30 Day Avg. Volume: 7,127
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €24.17
• Price Target Upside: 2.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: €23.50 ▲(0.00% Upside)

CompuGroup Medical's stable financial performance, characterized by consistent revenue growth and strong cash generation, is a key strength. However, a high P/E ratio suggests overvaluation, offset by a robust dividend yield. Technical indicators imply a neutral market sentiment, contributing to an overall moderate stock evaluation.

Positive Factors

Ownership Structure

CVC has acquired a minority stake of approximately 22%, while the founding family retains a 50.1% majority, indicating strong ongoing leadership stability.

Sales Growth

The new guidance for FY25 suggests organizational sales growth in the low-to-mid single-digit range, indicating a positive outlook for the company's future performance.

Negative Factors

Dividend

Management will propose a dividend of only €0.05, which aligns with the legally required minimum, suggesting limited profit distribution to shareholders.

Financial Performance

CompuGroup's adjusted EBITDA decreased by 20% year-over-year, indicating a deteriorated margin.

Profitability

Profitability in the fourth quarter was negatively impacted by one-offs related to ramp-up costs for larger HIS projects and investments in technology, resulting in a 20% decrease in adjusted EBITDA year-over-year.

CompuGroup Medical Business Overview & Revenue Model

Company Description

CompuGroup Medical SE & Co. KGaA develops and sells software and information technology solutions for the healthcare sector worldwide. It operates in four segments: Ambulatory Information Systems (AIS), Pharmacy Information Systems (PCS), Hospital Information Systems (HIS), and Consumer & Health Management Information Systems (CHS). The AIS segment provides practice management software and electronic medical records for registered physicians, medical care centers, and physicians networks, as well as offers supplementary Internet and intranet solutions. The PCS segment provides administrative and billing-related software applications for pharmacies. Its software solution provides information and decision support to manage various aspects of supply chain for medication. The HIS segment provides clinical and administrative solutions for the inpatient sector. This segment serves acute care hospitals, rehabilitation centers, social services, multi-location hospital networks and regional care organizations, and medical laboratories. The CHS segment provides IT security services, data-based product offers, software interface for sharing of information, clinical decision-making support, and medication and treatment databases for healthcare service providers, as well as digital healthcare stock, consumer portals, and mobile apps. This segment also offers security solutions for healthcare providers. It serves pharmaceutical companies, health insurance companies, and other healthcare IT companies and consumers. The company was formerly known as CompuGroup Medical SE and changed its name to CompuGroup Medical SE & Co. KGaA in June 2020. CompuGroup Medical SE & Co. KGaA was founded in 1987 and is headquartered in Koblenz, Germany.

How the Company Makes Money

CompuGroup Medical generates revenue through multiple streams, primarily from software licensing, subscription fees, and maintenance services associated with its healthcare IT solutions. The company charges healthcare providers for access to its software systems, which often includes ongoing support and updates. Additionally, CompuGroup Medical earns revenue from consulting services and training programs designed to help healthcare professionals effectively implement and utilize their products. Partnerships with healthcare organizations and integration with national health systems also enhance its market reach, contributing to its earnings through collaborative projects and shared service agreements.

CompuGroup Medical Financial Statement Overview

Summary

CompuGroup Medical demonstrates steady revenue growth, strong operational efficiency with solid EBIT and EBITDA margins, and resilience in cash generation. However, challenges in enhancing net profitability and managing leverage remain.

Income Statement

CompuGroup Medical demonstrates steady revenue growth over the years, although recent periods show a slight decline in revenue. The company maintains solid EBIT and EBITDA margins, indicating operational efficiency. However, net profit margins are relatively low, suggesting potential challenges in managing bottom-line profitability.

Balance Sheet

The balance sheet reflects a moderate level of leverage with a debt-to-equity ratio that suggests reliance on debt financing. However, the equity ratio is stable, indicating a satisfactory level of equity financing. The return on equity is modest, pointing to moderate profitability relative to shareholder investment.

Cash Flow

CompuGroup Medical's cash flow statement shows positive free cash flow and an improving trend in operating cash flow, which exceeds net income, suggesting strong cash conversion capabilities. The free cash flow growth rate is positive, although fluctuations in capital expenditures may impact cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16B	1.15B	1.19B	1.13B	1.03B	837.26M
Gross Profit	821.16M	965.14M	1.01B	958.16M	285.89M	712.95M
EBITDA	197.37M	206.90M	215.84M	231.36M	216.63M	192.49M
Net Income	27.00M	34.60M	45.92M	73.41M	68.97M	73.19M
Balance Sheet
Total Assets	2.02B	1.97B	1.90B	1.94B	1.79B	1.57B
Cash, Cash Equivalents and Short-Term Investments	128.64M	107.61M	64.54M	90.96M	107.63M	75.61M
Total Debt	826.65M	879.99M	766.94M	786.47M	741.31M	554.54M
Total Liabilities	1.37B	1.32B	1.23B	1.27B	1.18B	926.84M
Stockholders Equity	651.09M	647.91M	667.68M	672.42M	612.07M	638.67M
Cash Flow
Free Cash Flow	84.57M	65.66M	104.11M	63.99M	87.78M	94.20M
Operating Cash Flow	143.96M	128.88M	179.53M	145.03M	165.27M	149.93M
Investing Cash Flow	-108.83M	-105.28M	-124.33M	-145.41M	-163.98M	-457.12M
Financing Cash Flow	-35.70M	18.81M	-80.69M	-16.36M	30.15M	338.07M

CompuGroup Medical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:COP, the sentiment is Positive. The current price of 23.5 is below the 20-day moving average (MA) of 23.67, above the 50-day MA of 23.34, and above the 200-day MA of 21.59, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 22.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:COP.

CompuGroup Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COP	64 Neutral	€1.23B	66.21	2.87%	4.26%	1.16%	-43.53%
Sector *	50 Neutral	AU$2.63B	3.17	10.94%	2.68%	36.93%	13.65%
0NZY	―	€1.15B	31.20	17.61%	3.01%	―	―
0HI7	―	€45.50M	10.57	24.14%	―	―	―
0FGL	―	€1.22B	36.14	12.38%	0.32%	―	―
0RAR	―	€314.23M	19.61	6.73%	2.32%	―	―
MEDOF	―	$425.25M	20.53	3.56%	―	―	―