CompuGroup Medical (COP) AI Stock Analysis

• Market Cap: €1.16B
• Dividend Yield: 4.53%
• Average Volume (3M): 47.47K
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.33
• Revenue Growth: -2.84%
• EPS Growth: -24.28%
• Country: DE
• Employees: 8,299
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.35
• Shares Outstanding: 53,734,577
• 10 Day Avg. Volume: 34,888
• 30 Day Avg. Volume: 47,470
• PEG Ratio: -2.22
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.57
• 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: €29.00
• Price Target Upside: 31.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: €23.00 ▲(4.36%Upside)

CompuGroup Medical maintains a stable financial position with strong cash flow and operational efficiency, but faces challenges in profitability and leverage management. Technical analysis indicates neutral market momentum, while high valuation metrics suggest potential overvaluation. The attractive dividend yield provides some support, but the overall sentiment remains cautious.

Positive Factors

Investment and Stake Acquisition

CVC obtained a minority stake of approximately 22% while the founding family will retain its 50.1% majority.

Premium Offer

The envisaged offer price implies a +33% premium to current share price.

Shareholder Offer

CVC entered into an investment agreement for the submission of a voluntary public tender offer to the shareholders of CompuGroup with an offer price of €22 per share in cash.

Negative Factors

Dividend Proposal

Management will propose a dividend of only €0.05, which is in line with the legally required minimum.

Profitability

Profitability in the fourth quarter suffered from one-offs related to ramp-up costs for larger HIS projects and investments in technology, leading to an adjusted EBITDA of €55.4 million, down 20% year-over-year.

Revenue Performance

FY24 revenues were slightly below the lowered guidance range.

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 primarily through the sale of software licenses, maintenance contracts, and professional services. The company offers its products through a subscription-based model, providing continuous software updates and support as part of its service. Key revenue streams include licensing fees from their healthcare IT solutions, recurring revenues from service contracts, and consulting services for software implementation and customization. Significant partnerships with healthcare institutions and governments further contribute to their earnings by expanding their market reach and enhancing their product offerings.

CompuGroup Medical Financial Statement Overview

Summary

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. The balance sheet reflects a moderate level of leverage, with satisfactory equity financing. Positive free cash flow and strong cash conversion capabilities indicate resilience, though challenges remain in enhancing net profitability.

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	871.19M	712.95M
	EBIT
164.79M	105.74M	122.93M	125.61M	108.69M	119.67M
	EBITDA
197.37M	206.90M	215.84M	231.36M	216.63M	194.55M
	Net Income Common Stockholders
27.00M	34.60M	45.92M	73.41M	68.97M	73.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
128.64M	107.61M	64.54M	91.01M	107.63M	75.61M
	Total Assets
2.02B	1.97B	1.90B	1.94B	1.79B	1.57B
	Total Debt
826.65M	879.99M	766.94M	786.47M	741.31M	554.54M
	Net Debt
707.63M	772.81M	702.48M	696.00M	634.02M	479.93M
	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: Negative
• Last Price: 22.04
• 50DMA: Negative
• 100DMA: Negative
• 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:COP, the sentiment is Negative. The current price of 22.04 is below the 20-day moving average (MA) of 22.09, below the 50-day MA of 22.20, and above the 200-day MA of 19.14, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:COP.

CompuGroup Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COP	59 Neutral	€1.16B	33.04	5.26%	4.53%	-2.84%	-24.28%
Sector *	53 Neutral	$5.25B	3.24	-45.38%	2.81%	16.79%	-0.06%
0NZY		€1.32B	38.35	17.48%	0.08%	―	―
0HI7		€45.86M	10.83	24.14%	3.71%	―	―
0FGL		€1.25B	38.29	11.87%	0.32%	―	―
0RAR		€326.39M	20.49	6.73%	2.04%	―	―
MEDOF		$351.75M	21.61	2.99%	―	―	―