INDUS Holding (INH) AI Stock Analysis

• Market Cap: €821.73M
• Dividend Yield: 4.4%
• Average Volume (3M): 24.16K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.19
• Revenue Growth: -0.42%
• EPS Growth: 11.48%
• Country: DE
• Employees: 8,054
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 1.33
• Shares Outstanding: 25,800,000
• 10 Day Avg. Volume: 28,257
• 30 Day Avg. Volume: 24,158
• PEG Ratio: 10.11
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 5.68
• 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: €33.67
• Price Target Upside: 5.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: €36.00 ▲(13.03% Upside)

INDUS Holding's stock is supported by strong technical momentum and attractive valuation metrics. Despite financial challenges such as declining revenue and high leverage, the stock's positive market sentiment and undervaluation make it appealing.

Positive Factors

High gross profit margin

A 56% gross margin indicates durable unit-level profitability and pricing power in engineering and component businesses. This margin buffer helps absorb top-line volatility and supports long-term investment in product development and quality across industrial subsidiaries.

Robust free cash flow growth

Strong FCF growth demonstrates effective cash generation that can fund capex, R&D, pay down debt, or support dividends without relying on equity markets. Sustained cash conversion enhances financial flexibility over the medium term.

Diversified industrial exposure

A diversified portfolio across end markets and long-term customer contracts reduces single-industry cyclicality, stabilizes revenue streams, and allows cross-selling and operational synergies, supporting steadier performance over multiple quarters.

Negative Factors

Significant revenue decline

A sharp revenue drop materially weakens operating leverage and can erode bargaining power with customers and suppliers. If sales contraction persists, it will pressure margins, capex plans, and the ability to sustain investments across subsidiaries over coming quarters.

High financial leverage

Leverage near 1.1x increases interest and refinancing risk, limiting strategic flexibility. In downturns or slower sales recovery, servicing debt can crowd out investment and increase solvency risk, making balance sheet repair a medium-term priority.

Weak profitability conversion to cash

Low net margin and a 0.22 OCF/net income ratio show earnings are not translating efficiently into operating cash. This structural cash conversion issue can constrain liquidity, slow deleveraging, and limit reinvestment despite reported FCF growth.

INDUS Holding Business Overview & Revenue Model

Company Description

INDUS Holding AG is a private equity firm specializing in mergers and acquisitions and corporate spin-offs. The firm does not invest in retail and service companies, pure trading or consumer goods businesses, companies with significant dependencies on individual business partners, start-ups, turnarounds, mature businesses, and companies undergoing restructuring. The firm typically invests in middle market and mature companies. It primarily makes long-term investments in medium-sized manufacturing companies in energy and environmental technology; infrastructure and logistics technology, intelligent logistic infrastructure; automation, measurement and control technology; medical engineering; life science; construction and safety technology; industry; digitalization; green tech; medical equipment for the ageing society; innovative construction technology; and public and private security sectors. The firm acquires small and medium-sized companies based in Germany, Switzerland, Austria, and the German-speaking regions of Europe. It typically invests in companies with annual sales between €20 million ($22.05 million) and €100 million ($110.28 million), EBIT between €2 million ($2.66 million) and €10 million ($13.28 million), equity ratio above 30 percent, and a double digit operating margin. It prefers to invest in companies with low level/no liabilities to banks. The firm seeks to take a majority stake in its portfolio companies initially and building it up to 100 percent. It prefers to acquire mainly owner-managed companies. It also seeks second-level acquisition opportunities. The firm invests through its balance sheet. INDUS Holding AG was founded in 1989 and is based in Bergisch Gladbach, Germany.

How the Company Makes Money

INDUS Holding generates revenue through multiple key streams, primarily by providing specialized manufacturing services and products to various industries. The company earns money by selling engineered components, systems, and solutions to its clients, which include large manufacturers and corporations in sectors like automotive and aerospace. Additionally, INDUS Holding benefits from long-term contracts and partnerships with prominent industry players, ensuring a steady flow of income. The company also invests in technology and innovation, which allows it to create advanced products that can command higher prices in the market. Other contributing factors to its earnings include operational efficiencies and economies of scale achieved through its diversified portfolio of subsidiaries.

INDUS Holding Financial Statement Overview

Summary

INDUS Holding shows strong gross profit margins and impressive free cash flow growth. However, declining revenue and high leverage pose challenges to future profitability and financial stability.

Income Statement

INDUS Holding's income statement shows a mixed performance. The TTM gross profit margin is strong at 56.05%, indicating efficient cost management. However, the net profit margin is relatively low at 2.92%, and revenue has declined by 33.1% in the TTM period, signaling potential challenges in maintaining sales growth. The EBIT and EBITDA margins are moderate, reflecting stable operational efficiency but room for improvement in profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.09 in the TTM period, suggesting significant leverage and potential financial risk. Return on equity is modest at 7.17%, indicating average profitability relative to shareholder equity. The equity ratio is not explicitly calculated, but the figures suggest a balanced asset structure with room for strengthening equity.

Cash Flow

Cash flow analysis shows a robust free cash flow growth of 74.77% in the TTM period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is low at 0.22, indicating potential challenges in converting earnings to cash. However, the free cash flow to net income ratio of 0.46 suggests a healthy cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.72B	1.81B	1.80B	1.74B	1.56B
Gross Profit	813.75M	961.49M	989.30M	965.44M	953.58M	847.27M
EBITDA	210.83M	215.16M	250.15M	218.10M	245.00M	120.17M
Net Income	65.83M	53.71M	55.44M	72.89M	46.81M	-26.90M
Balance Sheet
Total Assets	1.92B	1.81B	1.93B	1.89B	1.86B	1.73B
Cash, Cash Equivalents and Short-Term Investments	202.43M	145.15M	265.84M	127.82M	136.32M	194.70M
Total Debt	788.45M	686.59M	772.01M	721.37M	640.45M	713.61M
Total Liabilities	1.20B	1.11B	1.21B	1.20B	1.07B	1.05B
Stockholders Equity	718.16M	697.54M	717.94M	683.16M	785.63M	675.31M
Cash Flow
Free Cash Flow	84.07M	92.78M	155.71M	61.80M	40.98M	102.70M
Operating Cash Flow	144.14M	143.68M	217.66M	116.34M	116.57M	155.19M
Investing Cash Flow	-62.71M	-65.37M	-50.08M	-94.44M	-130.36M	-52.34M
Financing Cash Flow	-21.29M	-199.88M	-501.00K	55.91M	-44.47M	-42.02M

INDUS Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:INH, the sentiment is Positive. The current price of 31.85 is above the 20-day moving average (MA) of 31.14, above the 50-day MA of 28.86, and above the 200-day MA of 24.10, indicating a bullish trend. The MACD of 1.00 indicates Positive momentum. The RSI at 63.65 is Neutral, neither overbought nor oversold. The STOCH value of 78.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:INH.

INDUS Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INH	73 Outperform	€821.73M	12.24	9.25%	4.40%	-0.42%	11.48%
MBB	72 Outperform	€903.69M	16.12	9.50%	1.64%	13.42%	155.75%
STO3	70 Outperform	€709.18M	20.64	4.63%	2.76%	-3.84%	-49.20%
SHF	65 Neutral	€596.39M	22.73	19.08%	―	20.52%	84.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TTK	46 Neutral	€238.49M	-4.17	-10.51%	16.24%	-8.59%	-2639.62%
IUR	38 Underperform	€13.52M	-0.27	-21.95%	―	―	―