Fabasoft AG (FAA) AI Stock Analysis

• Market Cap: $183.15M
• Dividend Yield: 0.6%
• Average Volume (3M): 8.98K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.64
• Revenue Growth: 9.22%
• EPS Growth: 24.35%
• Country: DE
• Employees: 501
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): 0.09
• Shares Outstanding: 11,000,000
• 10 Day Avg. Volume: 10,494
• 30 Day Avg. Volume: 8,980
• PEG Ratio: -1.92
• Price to Book (P/B): 8.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 68.00
• 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: $31.00
• Price Target Upside: 89.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• 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 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 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

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

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

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.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
85.59M	80.95M	69.23M	58.27M	55.09M	51.06M
	Gross Profit
30.11M	32.46M	35.26M	31.34M	30.98M	24.56M
	EBIT
14.15M	13.38M	9.99M	11.53M	13.89M	11.71M
	EBITDA
21.77M	21.38M	16.76M	17.65M	19.54M	16.75M
	Net Income Common Stockholders
9.53M	9.07M	6.29M	7.42M	8.82M	7.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.83M	25.07M	26.56M	35.82M	47.42M	35.10M
	Total Assets
88.03M	76.33M	70.37M	69.70M	76.60M	65.30M
	Total Debt
3.95M	7.60M	7.49M	5.90M	5.42M	5.42M
	Net Debt
-20.89M	-17.46M	-19.07M	-29.92M	-42.00M	-29.69M
	Total Liabilities
52.80M	45.69M	43.66M	42.45M	37.35M	33.83M
	Stockholders Equity
32.84M	28.00M	24.01M	25.39M	37.00M	29.21M
Cash Flow		Free Cash Flow
1.55M	6.14M	2.88M	9.90M	16.48M	9.73M
	Operating Cash Flow
22.38M	19.48M	7.03M	16.65M	21.01M	14.11M
	Investing Cash Flow
-21.21M	-13.24M	-4.64M	-7.27M	-4.30M	-4.84M
	Financing Cash Flow
2.05M	-7.82M	-11.63M	-22.05M	-3.32M	-7.40M

Fabasoft AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.40
• 50DMA: Negative
• 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 Negative. The current price of 16.4 is below the 20-day moving average (MA) of 16.81, below the 50-day MA of 16.58, and below the 200-day MA of 16.51, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 9.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FAA.

Fabasoft AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAA	71 Outperform	$183.15M	20.71	28.45%	0.60%	9.22%	24.35%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
0OLD		€36.73B	34.93	19.28%	1.00%	―	―
0O2W		€623.92M	14.53	16.30%	2.21%	―	―
0J9S		€8.91M	―	-16.98%	―	―	―
0NW4		€304.79B	51.84	12.91%	0.92%	―	―
0O8X		€2.25M	―		―	―	―