INDUS Holding (INH) AI Stock Analysis

• Market Cap: €565.02M
• Dividend Yield: 4.52%
• Average Volume (3M): 24.16K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.25
• 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: €36.50
• Price Target Upside: 37.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: €28.00 ▲(5.46% Upside)

INDUS Holding's strong valuation and positive technical indicators are the primary drivers of its score. The company's financial performance shows growth potential but is hindered by cost management and cash flow challenges. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The robust top-line expansion indicates a strong demand for INDUS Holding's products and services, enhancing its market position and potential for future growth.

Operational Efficiency

Stable EBIT and EBITDA margins suggest that INDUS Holding is effectively managing its operations, which supports sustainable profitability and competitiveness.

Balanced Leverage

A balanced leverage position provides INDUS Holding with financial flexibility to invest in growth opportunities while maintaining a manageable risk profile.

Negative Factors

Declining Gross Profit Margin

The decline in gross profit margin suggests rising costs or pricing pressures, which could impact profitability if not addressed.

Rising Debt Levels

Increasing debt levels could strain INDUS Holding's cash flow and limit its ability to invest in future growth, posing a risk to financial stability.

Cash Flow Challenges

Decreasing free cash flow indicates potential challenges in cash management, which could affect INDUS Holding's ability to fund operations and growth initiatives.

INDUS Holding Business Overview & Revenue Model

Company Description

INDUS Holding (INH) is a diversified industrial company based in Germany that operates across various sectors, including engineering, manufacturing, and technology. The company focuses on producing high-quality components and systems for several industries, such as automotive, aerospace, and machinery. With a commitment to innovation and sustainability, INDUS Holding develops cutting-edge solutions that enhance efficiency and performance for its clients.

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 demonstrates strong revenue growth and stable operational margins, but faces challenges with declining gross profit margins and cash flow management. The balance sheet shows a balanced leverage position, though increasing debt levels warrant attention. Overall, the company is on a growth trajectory but needs to address cost management and cash flow efficiency to enhance financial stability.

Income Statement

INDUS Holding shows a strong revenue growth rate of 30.7% in the TTM, indicating robust top-line expansion. However, the gross profit margin has decreased from 55.8% to 46.9%, suggesting rising costs or pricing pressures. The net profit margin is relatively low at 3.5%, but it has improved slightly from the previous year. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is close to 1, indicating a balanced approach to leveraging, but it has increased slightly, suggesting rising debt levels. Return on equity is moderate at 8.5%, showing decent profitability relative to shareholder equity. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

Free cash flow has decreased by 21.4% in the TTM, indicating potential cash management challenges. The operating cash flow to net income ratio is low at 0.24, suggesting that cash generation from operations is not fully aligned with reported profits. However, the free cash flow to net income ratio remains healthy at 0.53, indicating some level of cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.72B	1.81B	1.80B	1.74B	1.56B
Gross Profit	963.67M	961.49M	989.30M	965.44M	953.58M	847.27M
EBITDA	208.41M	215.16M	250.15M	218.10M	245.00M	120.17M
Net Income	50.16M	53.71M	55.44M	72.89M	46.81M	-26.90M
Balance Sheet
Total Assets	1.83B	1.81B	1.93B	1.89B	1.86B	1.73B
Cash, Cash Equivalents and Short-Term Investments	111.20M	145.15M	265.84M	127.82M	136.32M	194.70M
Total Debt	746.29M	686.59M	772.01M	721.37M	640.45M	713.61M
Total Liabilities	1.14B	1.11B	1.21B	1.20B	1.07B	1.05B
Stockholders Equity	686.46M	697.54M	717.94M	683.16M	785.63M	675.31M
Cash Flow
Free Cash Flow	48.10M	92.78M	155.71M	61.80M	40.98M	102.70M
Operating Cash Flow	103.84M	143.68M	217.66M	116.34M	116.57M	155.19M
Investing Cash Flow	-70.48M	-65.37M	-50.08M	-94.44M	-130.36M	-52.34M
Financing Cash Flow	-41.55M	-199.88M	-501.00K	55.91M	-44.47M	-42.02M

INDUS Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 26.55 is above the 20-day moving average (MA) of 24.77, above the 50-day MA of 23.37, and above the 200-day MA of 22.80, indicating a bullish trend. The MACD of 1.02 indicates Negative momentum. The RSI at 70.99 is Negative, neither overbought nor oversold. The STOCH value of 84.97 is Negative, 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
MBB	74 Outperform	€818.88M	19.78	9.50%	1.86%	13.42%	155.75%
INH	73 Outperform	€565.02M	11.03	9.25%	4.52%	-0.42%	11.48%
STO3	70 Outperform	€669.47M	19.96	4.63%	2.71%	-3.84%	-49.20%
SHF	69 Neutral	€541.12M	25.73	19.08%	―	20.52%	84.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TTK	46 Neutral	€248.01M	-4.34	-10.51%	15.69%	-8.59%	-2639.62%
IUR	37 Underperform	€32.31M	―	-21.95%	―	―	―