INDUS Holding (INH) AI Stock Analysis

• Market Cap: €705.63M
• Dividend Yield: 4.39%
• Average Volume (3M): 24.16K
• Price to Earnings (P/E): 10.4
• 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: €36.50
• Price Target Upside: 34.44% 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 ▲(3.13% 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

Cash Generation

Strong free cash flow growth indicates INDUS Holding's ability to generate cash, supporting reinvestment and debt reduction, enhancing long-term financial stability.

Gross Profit Margins

High gross profit margins reflect effective cost control, which can sustain profitability even amid revenue challenges, supporting long-term business health.

Innovation and Sustainability

Focus on innovation and sustainability positions INDUS Holding to meet evolving industry demands, ensuring competitive advantage and market relevance.

Negative Factors

Revenue Decline

Significant revenue decline poses a risk to future growth and market position, potentially impacting long-term profitability and competitive standing.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially straining resources needed for growth and innovation.

Low Net Profit Margin

Low net profit margins indicate challenges in converting sales into profit, which can hinder long-term financial performance and shareholder value.

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.

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	1.71B	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: 27.15
• 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 27.15 is above the 20-day moving average (MA) of 26.91, above the 50-day MA of 24.70, and above the 200-day MA of 23.12, indicating a bullish trend. The MACD of 0.69 indicates Positive momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 59.65 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	€705.63M	10.36	9.25%	4.39%	-0.42%	11.48%
MBB	72 Outperform	€848.86M	14.83	9.50%	1.64%	13.42%	155.75%
STO3	70 Outperform	€685.36M	20.30	4.63%	2.76%	-3.84%	-49.20%
SHF	65 Neutral	€564.39M	21.24	19.08%	―	20.52%	84.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TTK	46 Neutral	€242.10M	-4.24	-10.51%	16.26%	-8.59%	-2639.62%
IUR	38 Underperform	€14.37M	-0.29	-21.95%	―	―	―