IONOS Group SE (IOS) AI Stock Analysis

• Market Cap: €4.17B
• Dividend Yield: N/A
• Average Volume (3M): 184.03K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.45
• Revenue Growth: -7.15%
• EPS Growth: 53.40%
• Country: DE
• Employees: 4,182
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.44
• Shares Outstanding: 140,000,000
• 10 Day Avg. Volume: 209,966
• 30 Day Avg. Volume: 184,027
• PEG Ratio: -11.14
• Price to Book (P/B): 19.22
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 12.34
• 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: €38.79
• Price Target Upside: 39.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €28.00 ▲(0.54% Upside)

The overall stock score of 57 reflects a combination of strong financial performance and reasonable valuation, offset by significant technical weaknesses. The company's high leverage and low equity levels pose risks, while the bearish technical indicators suggest caution in the short term. Investors should monitor the company's efforts to manage debt and improve its balance sheet.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and the ability to attract and retain customers, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation provides financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.

Profitability

High profitability margins reflect efficient operations and competitive pricing power, contributing to sustainable financial performance.

Negative Factors

High Leverage

High leverage can increase financial risk and limit the company's ability to invest in growth, potentially impacting long-term stability.

Equity Levels

Low equity levels can lead to volatility and reliance on debt, making the company vulnerable to economic downturns or interest rate increases.

Slowing Growth Rate

A slowing growth rate may indicate market saturation or increased competition, which could hinder future revenue expansion and profitability.

IONOS Group SE Business Overview & Revenue Model

Company Description

Ionos Group SE offers a comprehensive portfolio of web presence and productivity, and cloud solutions in Europe. The company provides web hosting, domain and website, and Cloud services to free-lancers, small business, and enterprises. It also offers value added services, such as search engine optimization, business applications, and storage and security solutions. The company was founded in 1988 and is based in Montabaur, Germany.

How the Company Makes Money

IONOS Group SE generates revenue through a variety of channels, primarily through subscription-based services for web hosting, domain registration, and cloud infrastructure. The company offers tiered pricing plans that cater to different business sizes and needs, allowing clients to choose from shared hosting, VPS hosting, and dedicated servers. Additionally, IONOS earns income from value-added services such as website builders, online marketing tools, and security features. The company has established significant partnerships with technology providers to enhance its service offerings, further driving customer acquisition and retention. Recurring revenue from long-term contracts is a key aspect of its business model, providing a stable income stream.

IONOS Group SE Financial Statement Overview

Summary

IONOS Group SE exhibits strong profitability and cash flow generation, with consistent revenue growth and healthy margins. However, the high leverage and low equity levels present potential risks. The company should focus on reducing debt and strengthening its balance sheet to ensure sustainable growth and financial stability.

Income Statement

IONOS Group SE has shown consistent revenue growth with a TTM increase of 4.29%. The company maintains a healthy gross profit margin of 47.75% and a net profit margin of 12.40%, indicating strong profitability. EBIT and EBITDA margins are robust at 20.95% and 27.52%, respectively, reflecting efficient operations. However, the growth rate has slowed compared to previous years, which could be a concern for future performance.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.72, indicating significant leverage, which poses a risk. Return on equity is positive at 132.04%, but this is due to low equity levels, which can be volatile. The equity ratio is low, suggesting a reliance on debt financing. The company needs to manage its leverage to ensure long-term stability.

Cash Flow

IONOS Group SE has demonstrated strong free cash flow growth of 14.74% in the TTM. The operating cash flow to net income ratio is healthy at 1.07, indicating good cash generation relative to earnings. The free cash flow to net income ratio of 0.77 shows effective cash management. However, the company should continue to focus on improving cash flow to support its leveraged position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.70B	1.56B	1.42B	1.29B	1.10B	988.28M
Gross Profit	813.48M	759.07M	685.80M	562.92M	531.91M	498.33M
EBITDA	468.92M	420.40M	409.18M	319.10M	330.06M	331.67M
Net Income	211.23M	169.67M	174.23M	73.77M	60.92M	75.51M
Balance Sheet
Total Assets	1.63B	1.76B	1.60B	1.65B	1.59B	1.57B
Cash, Cash Equivalents and Short-Term Investments	44.84M	30.18M	38.38M	28.52M	51.60M	105.81M
Total Debt	798.20M	1.09B	1.27B	1.37B	1.41B	1.53B
Total Liabilities	1.41B	1.60B	1.60B	1.82B	1.82B	1.90B
Stockholders Equity	214.46M	158.62M	-2.92M	-162.30M	-234.30M	-328.65M
Cash Flow
Free Cash Flow	302.95M	247.16M	232.80M	91.28M	107.53M	99.52M
Operating Cash Flow	395.19M	386.80M	314.50M	188.34M	200.55M	166.63M
Investing Cash Flow	-115.42M	-100.31M	-114.17M	-110.57M	-88.59M	36.68M
Financing Cash Flow	-285.86M	-279.37M	-204.52M	-101.92M	-170.08M	-136.25M

IONOS Group SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:IOS, the sentiment is Negative. The current price of 27.85 is above the 20-day moving average (MA) of 27.81, below the 50-day MA of 32.24, and below the 200-day MA of 33.95, indicating a bearish trend. The MACD of -1.37 indicates Negative momentum. The RSI at 41.64 is Neutral, neither overbought nor oversold. The STOCH value of 76.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:IOS.

IONOS Group SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BC8	75 Outperform	€4.37B	20.45	11.35%	1.58%	-0.50%	-13.97%
1U1	65 Neutral	€3.79B	25.11	2.07%	0.21%	-0.46%	-50.77%
COK	64 Neutral	€746.91M	40.14	3.09%	3.75%	-0.61%	-52.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UTDI	61 Neutral	€5.03B	37.64	2.15%	7.35%	-2.19%	―
TMV	61 Neutral	€952.78M	8.24	113.84%	―	11.14%	0.92%
IOS	57 Neutral	€4.17B	19.58	150.30%	―	-7.15%	53.40%