CompuGroup Medical (COP) AI Stock Analysis

• Market Cap: €1.26B
• Dividend Yield: 4.24%
• Average Volume (3M): 8.29K
• Price to Earnings (P/E): 67.5
• Beta (1Y): 0.42
• Revenue Growth: 1.16%
• EPS Growth: N/A
• Country: DE
• Employees: 8,299
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.30
• Shares Outstanding: 53,734,577
• 10 Day Avg. Volume: 4,900
• 30 Day Avg. Volume: 8,286
• 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: €24.50
• Price Target Upside: 2.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: €23.50 ▼(-1.26% Downside)

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

Investment

CVC's acquisition of a 22% minority stake indicates confidence in the company's future potential.

Ownership Structure

The founding family retaining a 50.1% majority suggests stability in the company's governance.

Negative Factors

Dividend

The proposal of a €0.05 dividend, which is the minimum legally required, reflects limited distributable earnings.

Financial Performance

FY24 revenues were slightly below the already lowered guidance range, indicating challenges in meeting expectations.

Profitability

Profitability took a hit due to one-offs and investments in technology, resulting in a 20% year-over-year decrease in adjusted EBITDA.

CompuGroup Medical Business Overview & Revenue Model

Company Description

CompuGroup Medical (COP) is a leading global health information technology company that provides software and communication solutions to support various healthcare settings, including hospitals, doctors' offices, pharmacies, and other healthcare facilities. The company operates in sectors such as healthcare information systems, medical software solutions, and digital health services, offering products and services that enhance healthcare delivery, improve patient outcomes, and streamline operations within the healthcare industry.

How the Company Makes Money

CompuGroup Medical makes money primarily through the sale of software licenses, maintenance contracts, and service agreements. Key revenue streams include the development and distribution of electronic health records (EHR) systems, practice management software, and pharmacy information systems. The company also generates income from offering consulting and technical support services to its clients. Additionally, CompuGroup Medical forms strategic partnerships with healthcare providers, institutions, and other technology companies to enhance its product offerings and expand its market reach, contributing significantly to its earnings.

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: 23.80
• 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 23.8 is below the 20-day moving average (MA) of 23.84, above the 50-day MA of 23.16, and above the 200-day MA of 21.30, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.89 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 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
M3V	80 Outperform	€45.14M	10.49	24.14%	3.83%	-2.14%	-7.29%
ILM1	76 Outperform	$330.04M	21.94	2.99%	―	5.62%	-21.87%
NXU	68 Neutral	€1.22B	37.60	11.87%	0.32%	7.65%	30.34%
SBS	65 Neutral	€333.07M	20.79	6.73%	2.19%	-1.64%	22.60%
COP	64 Neutral	€1.26B	67.46	2.87%	4.24%	1.16%	―
EUZ	60 Neutral	€3.72B	33.62	17.48%	0.77%	9.42%	8.99%
Sector *	51 Neutral	$7.27B	-0.06	-62.84%	2.34%	15.16%	-2.86%