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Fabasoft AG (DE:FAA)
:FAA

Fabasoft AG (FAA) AI Stock Analysis

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Fabasoft AG

(OTC:FAA)

Rating:71Outperform
Price Target:
Fabasoft AG demonstrates strong financial performance, with robust profitability and a healthy balance sheet. However, cash flow management presents an area for improvement. The technical indicators suggest mixed momentum, with potential overbought conditions. Valuation appears fair, with a reasonable P/E ratio but a low dividend yield. These factors combine to suggest a stable but cautious outlook for the stock.
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 (FAA) vs. iShares MSCI Germany ETF (EWG)

Fabasoft AG Business Overview & Revenue Model

Company DescriptionFabasoft AG is a leading European software company specializing in cloud-based solutions for enterprise content management (ECM) and business process management. The company operates in sectors including public administration, financial services, and healthcare, providing products that facilitate digital document management, electronic records, and collaboration. Fabasoft's core offerings include the Fabasoft eGov-Suite and Fabasoft Business Process Cloud, both of which are designed to enhance productivity and compliance in complex organizational environments.
How the Company Makes MoneyFabasoft AG generates revenue primarily through the sale of its cloud-based software solutions, offered via subscription models. Key revenue streams include licensing fees for its enterprise content management platforms and associated cloud services. The company also earns income from consulting services that assist organizations in deploying and optimizing Fabasoft solutions. Additionally, Fabasoft collaborates with various technology partners and system integrators to extend its market reach and enhance its product offerings, contributing to its revenue growth. Significant factors influencing its earnings include the increasing demand for digital transformation solutions and regulatory compliance requirements across industries.

Fabasoft AG Financial Statement Overview

Summary
Fabasoft AG exhibits strong growth and profitability with solid income statement indicators. The balance sheet reflects low leverage and efficient equity utilization. However, cash flow analysis reveals challenges in free cash flow generation, which presents an area for potential improvement.
Income Statement
85
Very Positive
Fabasoft AG shows strong revenue growth with a TTM revenue increase of 5.72% from the previous year. The company maintains a solid gross profit margin of 35.18% and a net profit margin of 11.13% in the TTM period. EBIT and EBITDA margins are robust at 16.53% and 25.44%, respectively. Overall, the company demonstrates strong profitability and growth trends.
Balance Sheet
78
Positive
The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.12, indicating low leverage. The return on equity is strong at 29.03%, showing effective use of equity to generate profits. The equity ratio stands at 37.31%, suggesting a balanced capital structure. Despite these strengths, the company's equity as a percentage of total assets could be improved for enhanced financial stability.
Cash Flow
68
Positive
The cash flow analysis reveals a moderate free cash flow growth rate of -74.79% in the TTM, signaling potential short-term cash management challenges. However, the operating cash flow to net income ratio is healthy at 2.35, indicating good cash conversion. The free cash flow to net income ratio is low at 0.16, highlighting the need for improved free cash flow generation.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue85.59M80.95M69.23M58.27M55.09M51.06M
Gross Profit30.11M32.46M35.26M31.34M30.98M24.56M
EBITDA21.77M21.38M16.76M17.65M19.54M16.75M
Net Income9.53M9.07M6.29M7.42M8.82M7.71M
Balance Sheet
Total Assets88.03M76.33M70.37M69.70M76.60M65.30M
Cash, Cash Equivalents and Short-Term Investments24.83M25.07M26.56M35.82M47.42M35.10M
Total Debt3.95M7.60M7.49M5.90M5.42M5.42M
Total Liabilities52.80M45.69M43.66M42.45M37.35M33.83M
Stockholders Equity32.84M28.00M24.01M25.39M37.00M29.21M
Cash Flow
Free Cash Flow1.55M6.14M2.88M9.90M16.48M9.73M
Operating Cash Flow22.38M19.48M7.03M16.65M21.01M14.11M
Investing Cash Flow-21.21M-13.24M-4.64M-7.27M-4.30M-4.84M
Financing Cash Flow2.05M-7.82M-11.63M-22.05M-3.32M-7.40M

Fabasoft AG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.85
Price Trends
50DMA
16.57
Negative
100DMA
16.93
Negative
200DMA
16.54
Negative
Market Momentum
MACD
-0.22
Positive
RSI
43.93
Neutral
STOCH
39.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FAA, the sentiment is Negative. The current price of 15.85 is below the 20-day moving average (MA) of 16.36, below the 50-day MA of 16.57, and below the 200-day MA of 16.54, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 39.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FAA.

Fabasoft AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEGFT
79
Outperform
€646.30M15.0516.30%1.75%8.63%-3.90%
DEFAA
71
Outperform
€174.35M19.7128.45%0.63%9.22%24.35%
DEADS
70
Outperform
€37.19B36.3919.28%0.83%12.80%662.68%
DESAP
67
Neutral
€301.35B52.5412.91%0.78%10.51%203.70%
56
Neutral
$3.18B5.08-5.68%5.65%8.05%-41.83%
DEIS7
54
Neutral
€9.37M-16.98%-18.72%-121.04%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:FAA
Fabasoft AG
15.90
-1.80
-10.17%
DE:SAP
SAP SE
255.50
69.34
37.25%
DE:ADS
adidas AG
205.30
-11.50
-5.30%
DE:IS7
InTiCa Systems
2.21
-1.41
-38.95%
DE:GFT
GFT Technologies
23.10
-1.08
-4.47%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 30, 2025