INDUS Holding (INH) AI Stock Analysis

• Market Cap: €795.93M
• Dividend Yield: 4.4%
• Average Volume (3M): 24.16K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.20
• 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: 9.14% 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: €34.00 ▲(10.21% 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 sustained gross margin above 50% signals strong unit-level economics and pricing power in manufacturing. This margin buffer supports investment in R&D and product quality, helping the company maintain competitiveness and absorb input cost swings over the medium term.

Robust free cash flow growth

Rapid FCF growth improves financial flexibility, allowing INDUS to fund capex, dividends, or deleveraging without relying on equity markets. Strong cash conversion capacity supports long-term investment and balance sheet repair even amid cyclical revenue pressure.

Diversified industrial business and long-term contracts

A diversified portfolio across automotive, aerospace and machinery plus long-term contracts reduces reliance on any single end market. This breadth smooths revenue volatility, enables cross-selling and economies of scale, and supports durable cash generation across cycles.

Negative Factors

High leverage

A debt/equity ratio above 1 indicates material financial leverage, raising refinancing risk and interest burden. With elevated leverage, the firm has less flexibility to invest or weather prolonged downturns, increasing vulnerability if revenue or cash flow weakens.

Material revenue decline

Sustained double-digit revenue declines erode scale advantages, pressure fixed-cost absorption, and can reverse margin strengths. Continued top-line contraction complicates deleveraging and investment plans, risking market share loss and long-term profitability.

Low net profit margin

A low net margin despite high gross margins indicates heavy operating or financing costs and limited earnings retention. This constrains equity growth and reduces the company's ability to self-fund strategic initiatives, making it harder to strengthen the balance sheet over time.

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 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: 30.85
• 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 30.85 is above the 20-day moving average (MA) of 28.55, above the 50-day MA of 26.55, and above the 200-day MA of 23.41, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 83.37 is Negative, neither overbought nor oversold. The STOCH value of 94.68 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
INH	73 Outperform	€795.93M	11.72	9.25%	4.40%	-0.42%	11.48%
MBB	72 Outperform	€875.85M	15.12	9.50%	1.64%	13.42%	155.75%
STO3	70 Outperform	€667.20M	19.90	4.63%	2.76%	-3.84%	-49.20%
SHF	65 Neutral	€567.30M	21.62	19.08%	―	20.52%	84.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TTK	46 Neutral	€248.66M	-4.35	-10.51%	16.24%	-8.59%	-2639.62%
IUR	38 Underperform	€14.53M	-0.29	-21.95%	―	―	―