IONOS Group SE (IOS) AI Stock Analysis

• Market Cap: €3.71B
• Dividend Yield: N/A
• Average Volume (3M): 184.03K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.43
• 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: €39.63
• Price Target Upside: 49.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €28.00 ▲(5.66% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. While the company shows strong profitability and cash flow management, high leverage and declining revenue growth are significant concerns. The technical indicators suggest a bearish trend, further impacting the score. The valuation is reasonable, providing some support to the overall assessment.

Positive Factors

Cash Generation Ability

Strong cash generation relative to net income ensures financial flexibility and supports reinvestment in growth initiatives.

Profitability

High profitability margins indicate efficient operations and pricing power, contributing to long-term financial health.

Business Model Strength

A subscription-based model with recurring revenue ensures predictable cash flows and customer retention, enhancing business stability.

Negative Factors

Revenue Growth Decline

Declining revenue growth may indicate market saturation or increased competition, challenging future expansion efforts.

High Leverage

Significant leverage can strain financial resources and limit strategic flexibility, posing risks to long-term stability.

Low Return on Equity

Low ROE suggests inefficient use of equity capital, potentially reducing shareholder value and attractiveness to investors.

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 demonstrates solid profitability with a strong gross profit margin and healthy cash flow management. However, the company faces challenges with declining revenue growth and high leverage, which could pose risks to financial stability.

Income Statement

IONOS Group SE shows strong profitability with a consistent gross profit margin around 48% and a net profit margin improving to 12.4% in TTM. However, the revenue growth rate has declined by 17.89% in the TTM, indicating potential challenges in maintaining growth momentum.

Balance Sheet

The company has a high debt-to-equity ratio of 3.72 in TTM, reflecting significant leverage. Return on equity is low at 1.32%, suggesting limited returns for shareholders. The equity ratio is weak, indicating potential financial instability.

Cash Flow

IONOS Group SE maintains a healthy operating cash flow to net income ratio of 1.07 in TTM, indicating strong cash generation relative to net income. Free cash flow to net income is robust at 0.77, although free cash flow growth has slightly declined by 1.43% in TTM.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.56B	1.42B	1.29B	1.10B	988.28M
Gross Profit	778.91M	759.07M	685.80M	562.92M	531.91M	498.33M
EBITDA	384.94M	420.40M	409.18M	319.10M	330.06M	331.67M
Net Income	223.29M	169.67M	174.23M	73.77M	60.92M	75.51M
Balance Sheet
Total Assets	1.56B	1.76B	1.60B	1.65B	1.59B	1.57B
Cash, Cash Equivalents and Short-Term Investments	45.58M	30.18M	38.38M	28.52M	51.60M	105.81M
Total Debt	807.91M	1.09B	1.27B	1.37B	1.41B	1.53B
Total Liabilities	1.29B	1.60B	1.60B	1.82B	1.82B	1.90B
Stockholders Equity	265.51M	158.62M	-2.92M	-162.30M	-234.30M	-328.65M
Cash Flow
Free Cash Flow	298.62M	247.16M	232.80M	91.28M	107.53M	99.52M
Operating Cash Flow	384.06M	386.80M	314.50M	188.34M	200.55M	166.63M
Investing Cash Flow	-25.59M	-100.31M	-114.17M	-110.57M	-88.59M	36.68M
Financing Cash Flow	-352.00M	-279.37M	-204.52M	-101.92M	-170.08M	-136.25M

IONOS Group SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.50
• 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 26.5 is below the 20-day moving average (MA) of 26.54, below the 50-day MA of 28.71, and below the 200-day MA of 34.16, indicating a bearish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 73.63 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	72 Outperform	€5.47B	25.43	11.35%	1.61%	-0.50%	-13.97%
TMV	67 Neutral	€904.91M	7.83	113.84%	―	11.14%	0.92%
COK	65 Neutral	€866.67M	50.15	3.09%	3.64%	-0.61%	-52.28%
1U1	65 Neutral	€4.29B	33.76	2.07%	0.21%	-0.46%	-50.77%
UTDI	62 Neutral	€4.96B	35.06	2.15%	7.16%	-2.19%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IOS	58 Neutral	€3.71B	16.46	150.30%	―	-7.15%	53.40%