INDUS Holding (INH) AI Stock Analysis

• Market Cap: €601.14M
• Dividend Yield: 5.17%
• Average Volume (3M): 35.21K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.24
• Revenue Growth: -2.71%
• EPS Growth: 26.13%
• Country: DE
• Employees: 8,054
• Sector: Industrials
• Sector Strength: 90
• Industry: Conglomerates
• EPS (TTM): 0.63
• Shares Outstanding: 25,800,000
• 10 Day Avg. Volume: 36,748
• 30 Day Avg. Volume: 35,211
• PEG Ratio: 0.77
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.46
• 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: €32.67
• Price Target Upside: 40.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: €26.00 ▲(12.07%Upside)

The overall stock score is driven primarily by strong technical analysis and attractive valuation, indicating potential for future price appreciation. While financial performance shows stability, the decline in revenue and net income pose risks. The lack of earnings call data and corporate events limits further insight into potential operational and strategic shifts.

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 makes money primarily through the acquisition and management of a diversified portfolio of SMEs. The company's revenue model involves generating income from the operational profits of its portfolio companies. INDUS Holding provides strategic direction and financial backing to improve the performance and value of these companies, which in turn contributes to its overall earnings. Additionally, INDUS Holding may also earn money through the sale of portfolio companies after value enhancement or through dividends received from profitable operations. Partnerships or collaborations with industry experts and financial institutions also play a role in optimizing the growth and profitability of its investments.

INDUS Holding Financial Statement Overview

Summary

INDUS Holding demonstrates stable financial health with robust operational margins and a balanced capital structure. However, declining revenue and net income over the TTM indicate potential challenges in maintaining growth. Strong cash flow generation supports financial stability, but increased leverage and declining profitability are areas to monitor.

Income Statement

The income statement shows a stable but slightly declining revenue trend with a TTM (Trailing-Twelve-Months) revenue of €1.71 billion compared to the peak of €1.81 billion in 2023. The gross profit margin remains healthy, but net profit margins have declined over the TTM due to lower net income. EBITDA margins are stable, indicating good operational efficiency, but EBIT margins have decreased, suggesting increased operational costs or lower revenue efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, which has increased slightly over the TTM, indicating higher leverage. Stockholders' equity shows a stable trend, but return on equity has been under pressure due to declining net income. The equity ratio remains robust, reflecting a balanced capital structure but with increased liabilities.

Cash Flow

The cash flow statement indicates a strong operating cash flow relative to net income, but free cash flow has decreased over the TTM. The company maintains strong cash flow generation capabilities, but the decrease in free cash flow growth suggests higher capital expenditures or operating challenges. The free cash flow to net income ratio remains strong, indicating good 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	804.26M	961.49M	989.30M	965.44M	953.58M	847.27M
EBITDA	217.33M	215.16M	250.15M	218.10M	245.00M	120.17M
Net Income	59.38M	53.71M	55.44M	72.89M	46.81M	-26.90M
Balance Sheet
Total Assets	1.84B	1.81B	1.93B	1.89B	1.86B	1.73B
Cash, Cash Equivalents and Short-Term Investments	114.92M	145.15M	265.84M	127.82M	136.32M	194.70M
Total Debt	705.55M	686.59M	772.01M	721.37M	640.45M	713.61M
Total Liabilities	1.12B	1.11B	1.21B	1.20B	1.07B	1.05B
Stockholders Equity	709.10M	697.54M	717.94M	683.16M	785.63M	675.31M
Cash Flow
Free Cash Flow	61.17M	92.78M	155.71M	61.80M	40.98M	102.70M
Operating Cash Flow	115.40M	143.68M	217.66M	116.34M	116.57M	155.19M
Investing Cash Flow	-72.89M	-65.37M	-50.08M	-94.44M	-130.36M	-52.34M
Financing Cash Flow	-138.79M	-199.88M	-501.00K	55.91M	-44.47M	-42.02M

INDUS Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 23.2 is above the 20-day moving average (MA) of 22.79, above the 50-day MA of 21.90, and above the 200-day MA of 21.23, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 59.41 is Neutral, neither overbought nor oversold. The STOCH value of 54.23 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	€601.14M	10.01	8.42%	5.17%	-2.71%	26.13%
Sector *	65 Neutral	$10.94B	15.62	5.18%	2.23%	3.14%	-26.85%
0EWJ	―	€74.18M	―		15.23%	―	―
0J7X	―	€670.70M	17.57	6.96%	2.11%	―	―
0NJB	―	€522.21M	23.13	17.51%	―	―	―
0G5B	―	€705.78M	18.76	5.11%	6.65%	―	―
0GC8	―	€404.16M	―	-7.57%	9.77%	―	―