FORTEC Elektronik (FEV) AI Stock Analysis

• Market Cap: €39.66M
• Dividend Yield: 7.76%
• Average Volume (3M): 1.42K
• Price to Earnings (P/E): ―
• 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): 0.33
• Revenue Forecast (FY): €82.70M

• Rating: 64 Neutral
• Price Target: €13.00 ▲(0.00% Upside)
• Action: Reiterated Date: 01/22/26
• Date: Action: Reiterated 01/22/26

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

Conservative leverage

A low debt-to-equity ratio of 0.13 provides durable financial flexibility: it lowers interest burden, reduces refinancing risk, and preserves capacity to invest in product development or absorb cyclical revenue dips. That conservative capital structure supports continuity of operations and strategic execution over months.

Stable gross margin

A consistent gross margin near 33.5% implies structural strength in sourcing, pricing or product mix for core hardware and modules. Sustained gross margin preserves the ability to fund engineering, customization and service activities, enabling the company to maintain competitive product economics over the medium term.

Solution-driven business model

Combining product distribution with engineering, customization and systems integration builds customer stickiness and higher-value revenue streams. Value-added services deepen customer relationships, raise switching costs and diversify revenue, making the business less dependent on pure hardware cycles over the coming months.

Negative Factors

Revenue decline

A recurring revenue decline (-3.7%) signals either weakening end-market demand or loss of share. Over a multi-month horizon, sustained top-line pressure reduces scale economies and hampers reinvestment capacity, making recovery harder without new wins or market expansion initiatives.

Compressed profitability

Very thin net margin (1.7%) and contracting operating margins indicate limited ability to absorb cost volatility or price competition. Structural margin compression restrains retained earnings, undermines funding for R&D and service expansion, and weakens the cushion against unexpected operational shocks.

Weak cash conversion

Low operating cash conversion (0.18) and reduced free cash flow imply earnings quality and working capital or capex strain. Poor cash generation limits the company's ability to finance growth projects, fund value-added services, pay dividends sustainably, or respond to supply-chain or customer financing needs.

FORTEC Elektronik Business Overview & Revenue Model

Company Description

FORTEC Elektronik AG provides industrial power supplies and display technologies in Germany and internationally. It operates through two segments, Data Visualisation and Power Supplies. The Data Visualisation segment offers standard kits and support services to product solutions with access to TFT controller and drive solutions developed in-house, as well as generation of optical bonding technology. The Power Supplies segment provides power supplies and DC/DC convertors. Fortec Elektronik AG was founded in 1984 and is based in Germering, Germany.

How the Company Makes Money

FEV makes money primarily by selling electronics hardware and related solutions to business customers. Key revenue streams include: (1) Display technology sales: revenue from supplying industrial-grade display components and modules, and associated accessories, typically as part of customer-specific configurations for industrial applications. (2) Embedded and system solutions sales: revenue from selling embedded computing products, industrial PCs, and system components, often integrated or configured for customer requirements. (3) Value-added services: revenue generated when the company provides engineering support, customization, integration, testing, or project services that accompany hardware deliveries. The company’s earnings are influenced by its role as a supplier and solution partner in electronics value chains—leveraging sourcing/partner networks for components and converting that into margin through distribution, configuration, and solution know-how. Specific details on pricing, margins, customer concentration, or named partnerships are null.

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: 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:FEV, the sentiment is Negative. The current price of 13 is above the 20-day moving average (MA) of 12.98, below the 50-day MA of 13.31, and below the 200-day MA of 13.31, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 36.27 is Neutral, neither overbought nor oversold. The STOCH value of 16.70 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	€48.29M	18.75	10.43%	1.77%	2.84%	21.48%
FEV	64 Neutral	€39.66M	-85.24	2.48%	7.76%	-4.51%	-39.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYZ	45 Neutral	€17.48M	-16.25	-59.56%	―	-13.27%	-779.38%
CYR	41 Neutral	€43.61M	-33.25	-7.03%	―	98.99%	87.57%