FORTEC Elektronik (FEV) AI Stock Analysis

• Market Cap: €40.31M
• Dividend Yield: 7.76%
• Average Volume (3M): 1.42K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.31
• Revenue Growth: -4.51%
• EPS Growth: -39.55%
• Country: DE
• Employees: 246
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): N/A
• Shares Outstanding: 3,250,436
• 10 Day Avg. Volume: 1,588
• 30 Day Avg. Volume: 1,415
• PEG Ratio: -0.52
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 45.39
• 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: 64 Neutral
• Price Target: €13.00 ▲(0.00% Upside)

The score is primarily driven by weakening financial performance (declining revenue, compressed margins, and reduced cash flow) offset by a strong, low-leverage balance sheet. Technicals show positive trend but very overbought conditions, and valuation is tempered by a high P/E despite an attractive dividend yield.

Positive Factors

Diversified End Markets

Serving industrial automation, medical technology and telecommunications provides durable demand diversification. Core products (power supplies, embedded systems) are essential components with long replacement cycles and custom contracts, supporting recurring revenue and lower cyclicality over a multi-month horizon.

Low Financial Leverage

A debt-to-equity of 0.13 signals conservative capital structure and meaningful financial flexibility. This durable balance sheet strength supports continued R&D and capex investment, cushions downturns, and lowers refinancing risk, preserving strategic options for 2-6 month planning horizons.

Stable Gross Margin

A sustained ~33.5% gross margin indicates persistent product-level pricing power or manufacturing efficiency. That structural margin floor helps absorb input or volume shocks and preserves the ability to fund operating expenses and product development even if top-line growth is muted.

Negative Factors

Revenue Decline

Recurring revenue contraction of -3.7% reflects weakening demand or lost share in core markets. Over a 2-6 month horizon this reduces scale benefits, pressures utilization, and limits ability to invest in product development or sales expansion unless management arrests the decline.

Compressed Profitability

Net margin near 1.7% with contracting EBIT/EBITDA highlights weak conversion of gross profit into lasting earnings. Structurally thin profitability reduces the buffer for fixed costs, inhibits reinvestment, and magnifies the impact of any input-cost increases or pricing pressure over the medium term.

Weak Cash Generation

OCF-to-net-income at 0.18 and lower free cash flow conversion show poor cash conversion of earnings. This durable weakness constrains dividends, capex and working capital needs, and may force external financing or spending cuts if cash flow does not improve over the coming quarters.

FORTEC Elektronik Business Overview & Revenue Model

Company Description

FORTEC Elektronik (FEV) is a leading provider of electronic solutions, specializing in the development and manufacturing of high-quality power supply units, embedded systems, and communication technologies. With a focus on sectors such as industrial automation, medical technology, and telecommunications, FEV offers a diverse range of products designed to meet the demanding requirements of modern electronic applications. The company's commitment to innovation and quality has positioned it as a trusted partner for various industries seeking reliable electronic solutions.

How the Company Makes Money

FORTEC Elektronik generates revenue primarily through the sale of its core products, including power supply units and embedded systems, which are essential components in numerous electronic applications. The company also earns money by providing custom solutions tailored to specific client needs, which often leads to long-term contracts and repeat business. Key revenue streams include direct sales to manufacturers in industrial and medical sectors, as well as partnerships with distributors and resellers that extend the reach of its products. Additionally, FEV benefits from ongoing service contracts and maintenance agreements, which provide a steady income stream. Strategic collaborations with technology firms and participation in industry-specific trade shows further enhance its market presence and drive sales.

FORTEC Elektronik Financial Statement Overview

Summary

Mixed fundamentals: revenue declined (-3.7%) and profitability weakened (net margin 1.7% with contracting EBIT/EBITDA margins), while the balance sheet remains a key support with low leverage (debt-to-equity 0.13). Cash generation is a concern, with notably weaker operating cash flow (operating cash flow to net income 0.18).

Income Statement

FORTEC Elektronik has experienced a decline in revenue over the past year, with a negative revenue growth rate of -3.7%. Despite this, the company maintains a stable gross profit margin of approximately 33.5%. However, the net profit margin has decreased to 1.7%, indicating reduced profitability. The EBIT and EBITDA margins have also contracted, reflecting operational challenges.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.13, indicating conservative leverage. The return on equity has decreased to 2.4%, suggesting lower efficiency in generating returns from equity. The equity ratio remains strong, highlighting a stable financial position.

Cash Flow

Operating cash flow has decreased significantly, impacting the operating cash flow to net income ratio, which stands at 0.18. Free cash flow has also declined, with a free cash flow to net income ratio of 0.61, indicating challenges in cash generation relative to net income.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Jun 2021
Income Statement
Total Revenue	82.78M	79.72M	94.53M	105.85M	89.03M	77.43M
Gross Profit	27.87M	26.68M	32.56M	35.27M	29.12M	23.92M
EBITDA	4.87M	4.57M	8.98M	12.31M	10.06M	7.16M
Net Income	2.33M	1.35M	5.30M	7.55M	6.25M	3.88M
Balance Sheet
Total Assets	77.55M	73.26M	78.80M	76.30M	70.84M	64.01M
Cash, Cash Equivalents and Short-Term Investments	21.18M	19.51M	22.26M	13.39M	13.46M	14.83M
Total Debt	7.55M	7.23M	6.29M	6.62M	7.88M	9.55M
Total Liabilities	21.51M	17.15M	21.04M	21.30M	20.98M	19.47M
Stockholders Equity	56.04M	56.11M	57.77M	55.00M	49.85M	44.54M
Cash Flow
Free Cash Flow	0.00	1.15M	13.19M	4.49M	1.87M	9.92M
Operating Cash Flow	0.00	1.88M	13.75M	5.00M	2.11M	10.18M
Investing Cash Flow	0.00	-718.00K	-540.00K	-495.00K	-216.00K	-251.00K
Financing Cash Flow	0.00	-4.12M	-4.24M	-4.10M	-4.14M	-4.15M

FORTEC Elektronik Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.00
• 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:FEV, the sentiment is Negative. The current price of 13 is below the 20-day moving average (MA) of 13.80, above the 50-day MA of 12.40, and below the 200-day MA of 13.52, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 32.73 is Neutral, neither overbought nor oversold. The STOCH value of 7.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FEV.

FORTEC Elektronik Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBS	75 Outperform	€53.98M	15.41	10.88%	1.77%	2.84%	21.48%
FEV	64 Neutral	€40.31M	25.33	2.81%	7.76%	-4.51%	-39.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYZ	45 Neutral	€20.25M	-1.24	-46.35%	―	-13.27%	-779.38%
CYR	41 Neutral	€41.99M	-21.67	-6.83%	―	98.99%	87.57%