Fabasoft AG (FAA) AI Stock Analysis

• Market Cap: $183.70M
• Dividend Yield: 0.6%
• Average Volume (3M): 7.37K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.65
• Revenue Growth: 7.28%
• EPS Growth: -1.79%
• Country: DE
• Employees: 501
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): 0.09
• Shares Outstanding: 11,000,000
• 10 Day Avg. Volume: 3,775
• 30 Day Avg. Volume: 7,371
• PEG Ratio: -2.57
• Price to Book (P/B): 5.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.62
• 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: $31.00
• Price Target Upside: 86.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: €19.00 ▲(14.46%Upside)

Fabasoft AG's strong financial performance, particularly in revenue growth and low leverage, significantly contributes to its overall stock score. Neutral technical indicators and a reasonable valuation support a stable outlook, though potential concerns in operating efficiency and equity trends should be monitored.

Positive Factors

Operational Performance

Strong operational performance and focus on growth investments.

Revenue Growth

Revenue growth improved to 11.7% in the second quarter following 3.8% in the first quarter of 2024/25.

Negative Factors

Investment Costs

Investment in new cloud products, personnel and marketing campaigns are expected to be higher in the second half of the year.

Short-Term Margins

The company continues to invest heavily in its cloud product portfolio, which leads to lower margins in the short term.

Fabasoft AG Business Overview & Revenue Model

Company Description

Fabasoft AG, together with its subsidiaries, manufactures software products, and provides cloud services to public and private sectors in Austria, Germany, Switzerland, and internationally. The company offers Fabasoft eGov-Suite, an electronic records management system for the public sector; Fabasoft Folio, an on-premises workflow and enterprise content management system for organization; Mindbreeze InSpire that provides appliances and cloud services for information insights, knowledge management, and artificial intelligence; Fabasoft Approve for the management of technical data and documents; Fabasoft Business Process Cloud to digitize cross-company business processes; Xpublisher manages standardized contents for automated multi-channel publishing; and Fabasoft Contracts, a cloud-based contract management software, as well as Fabasoft Secomo that enables handling of signing processes and to protect corporate data. It also provides Fabasoft app.telemetry, a tool for monitoring the performance and response times of applications; Fabasoft app.ducx, a use case based development environment for business applications; and Fabasoft app.test, a tool for business applications. The company was founded in 1988 and is headquartered in Linz, Austria.

How the Company Makes Money

Fabasoft AG makes money primarily through the sale of its software solutions and services. The company offers subscription-based pricing models for its cloud services, which provide recurring revenue streams. These services are targeted at both private enterprises and public institutions, providing tools for digital transformation, secure document handling, and process automation. Additional revenue is generated from consulting services, which help clients implement and customize Fabasoft's solutions to fit their specific needs. The company also benefits from partnerships with technology firms and system integrators, which help expand its market reach and enhance its service offerings.

Fabasoft AG Financial Statement Overview

Summary

Fabasoft AG demonstrates strong financial performance with consistent revenue growth and robust gross profit margins. The company's low leverage and solid equity position enhance its financial stability. However, there is a slight decline in EBIT margin and equity trends, which should be monitored.

Income Statement

Fabasoft AG demonstrates strong financial performance with consistent revenue growth, achieving a significant 21.7% increase in the latest year. Gross profit margins are robust at 50.9%, indicating efficient cost management. However, there is a slight decline in EBIT margin from the previous year, suggesting potential challenges in operating efficiency.

Balance Sheet

The balance sheet shows a healthy equity ratio of 36.2%, indicating a solid capital structure. The debt-to-equity ratio is favorable at 0.18, reflecting low leverage and reduced financial risk. However, the declining trend in stockholders' equity over the years could be a concern if not addressed.

Cash Flow

Fabasoft AG maintains strong cash flow with a positive free cash flow growth rate, indicating efficient cash management. The operating cash flow to net income ratio is healthy, demonstrating effective conversion of income into cash. However, the fluctuation in free cash flow suggests potential variability in cash generation.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	86.84M	80.95M	69.23M	58.27M	55.09M
Gross Profit	44.17M	32.46M	35.26M	31.34M	30.98M
EBITDA	21.06M	21.38M	16.76M	17.65M	19.54M
Net Income	8.80M	9.07M	6.29M	7.42M	8.82M
Balance Sheet
Total Assets	93.26M	76.33M	70.37M	69.70M	76.60M
Cash, Cash Equivalents and Short-Term Investments	34.28M	25.07M	26.56M	35.82M	47.42M
Total Debt	6.07M	7.60M	7.49M	5.90M	5.42M
Total Liabilities	57.16M	45.69M	43.66M	42.45M	37.35M
Stockholders Equity	33.77M	28.00M	24.01M	25.39M	37.00M
Cash Flow
Free Cash Flow	6.59M	6.14M	2.88M	9.90M	16.48M
Operating Cash Flow	23.09M	19.48M	7.03M	16.65M	21.01M
Investing Cash Flow	-16.88M	-13.24M	-4.64M	-7.27M	-4.30M
Financing Cash Flow	2.92M	-7.82M	-11.63M	-22.05M	-3.32M

Fabasoft AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FAA, the sentiment is Neutral. The current price of 16.6 is above the 20-day moving average (MA) of 16.56, above the 50-day MA of 16.50, and below the 200-day MA of 16.62, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 10.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:FAA.

Fabasoft AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAA	76 Outperform	$183.70M	20.77	28.45%	0.60%	7.28%	-1.79%
Sector *	61 Neutral	€36.31B	6.94	-21.90%	2.08%	5.85%	57.81%
0MUF	―	€66.44M	19.66	-12.29%	0.50%	―	―
MSGL	―	€146.38M	12.39		1.17%	―	―
0KUR	―	€473.36M	―	-4.80%	―	―	―
SJJ	―	€186.38M	―	-0.21%	―	―	―
BSS	―	$101.94M	47.01		―	―	―