Fabasoft AG (FAA) AI Stock Analysis

• Market Cap: €176.00M
• Dividend Yield: 0.63%
• Average Volume (3M): 20.11K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.64
• Revenue Growth: 4.70%
• EPS Growth: -0.02%
• Country: DE
• Employees: 501
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.29
• Shares Outstanding: 11,000,000
• 10 Day Avg. Volume: 13,074
• 30 Day Avg. Volume: 20,110
• PEG Ratio: -5.70
• Price to Book (P/B): 5.36
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 27.47
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €18.00 ▲(12.50% Upside)

Fabasoft AG's strong financial performance, characterized by robust revenue growth and solid profitability, is the primary driver of its stock score. Technical indicators support a neutral to slightly bullish outlook, while valuation metrics suggest the stock is fairly priced. However, cash flow challenges and modest dividend yield slightly temper the overall score.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand for Fabasoft's software solutions, supporting long-term business expansion and market presence.

Profitability

High profitability margins reflect efficient cost management and strong competitive positioning, ensuring sustainable earnings over time.

Balance Sheet Stability

A stable balance sheet with moderate leverage enhances financial flexibility, supporting long-term strategic initiatives and resilience against market fluctuations.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth may limit Fabasoft's ability to invest in future growth opportunities, potentially impacting long-term competitiveness and innovation.

Debt Reliance

High reliance on debt could pose financial risks if not managed carefully, potentially affecting the company's ability to weather economic downturns or invest in growth.

Gross Margin Pressure

Decreasing gross margins may indicate rising costs or pricing pressures, which could erode profitability if not addressed, impacting long-term financial health.

Fabasoft AG Business Overview & Revenue Model

Company Description

Fabasoft AG (FAA) is a leading European provider of cloud solutions and software for enterprise content management, collaboration, and process management. The company operates primarily in the technology sector, offering a range of products and services that facilitate digital transformation for organizations. Fabasoft's core products include its Fabasoft Cloud, which provides secure and compliant cloud services, and solutions for document management, project management, and workflow automation. With a strong focus on innovation, Fabasoft aims to empower businesses to optimize their operations and improve collaboration in a digital environment.

How the Company Makes Money

Fabasoft AG generates revenue through a combination of subscription-based models and licensing fees for its cloud services and software solutions. The primary revenue stream comes from recurring subscriptions to its Fabasoft Cloud platform, where clients pay for access to storage, collaboration tools, and compliance features. Additionally, Fabasoft earns income from one-time licensing fees for its on-premise software installations and from professional services, including consulting, implementation, and support. The company has also established partnerships with various technology providers and enterprises, which can enhance its market reach and contribute to its revenue through integrated solutions and joint offerings.

Fabasoft AG Financial Statement Overview

Summary

Fabasoft AG exhibits strong financial performance with significant revenue growth and efficient operations. The balance sheet is solid with low leverage and high returns on equity. However, the decline in free cash flow growth warrants attention.

Income Statement

Fabasoft AG demonstrates strong revenue growth with a TTM growth rate of 87.7%, indicating robust demand for its software solutions. The gross profit margin of 48.6% and EBIT margin of 15.5% reflect efficient cost management and operational effectiveness. However, the net profit margin of 10.1% suggests room for improvement in translating revenue into net income.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.18, indicating prudent financial leverage. The return on equity of 27.7% is impressive, showcasing effective use of shareholder funds to generate profits. The equity ratio of 38.8% suggests a solid capital structure, though there is potential to increase equity relative to total assets.

Cash Flow

Fabasoft AG's cash flow statement shows a decline in free cash flow growth by 12.1%, which could be a concern for future liquidity. The operating cash flow to net income ratio of 2.44 indicates strong cash generation relative to net income, while the free cash flow to net income ratio of 0.29 suggests moderate conversion of profits into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	87.95M	86.84M	80.95M	69.23M	58.27M	55.09M
Gross Profit	42.54M	44.17M	32.46M	35.26M	31.34M	30.98M
EBITDA	21.52M	21.06M	21.38M	16.80M	17.65M	19.54M
Net Income	9.08M	8.80M	9.07M	6.29M	7.42M	8.82M
Balance Sheet
Total Assets	95.50M	93.26M	76.33M	70.37M	69.70M	76.60M
Cash, Cash Equivalents and Short-Term Investments	29.32M	34.28M	25.07M	26.56M	35.82M	47.42M
Total Debt	19.23M	16.74M	7.60M	7.49M	5.90M	5.42M
Total Liabilities	56.02M	57.16M	45.69M	43.66M	42.45M	37.35M
Stockholders Equity	37.73M	33.77M	28.00M	24.01M	25.39M	37.00M
Cash Flow
Free Cash Flow	2.15M	6.59M	6.14M	2.88M	9.90M	16.48M
Operating Cash Flow	19.07M	23.09M	19.48M	7.03M	16.65M	21.01M
Investing Cash Flow	-16.88M	-16.88M	-13.24M	-4.64M	-7.27M	-4.30M
Financing Cash Flow	3.12M	2.92M	-7.82M	-11.63M	-22.05M	-3.32M

Fabasoft AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 16 is above the 20-day moving average (MA) of 15.91, above the 50-day MA of 15.65, and below the 200-day MA of 16.20, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.51 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:FAA.

Fabasoft AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAA	74 Outperform	€176.00M	18.99	25.57%	0.63%	4.70%	-0.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PSAN	58 Neutral	€705.34M	-30.32	-29.16%	―	9.19%	-37.73%
CSH	52 Neutral	€60.25M	-13.00	-11.64%	0.56%	3.58%	-253.00%