init innovation in traffic systems (IXX) AI Stock Analysis

• Market Cap: €427.25M
• Dividend Yield: 1.86%
• Average Volume (3M): 3.66K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.73
• Revenue Growth: 28.24%
• EPS Growth: -24.14%
• Country: DE
• Employees: 1,255
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 0.14
• Shares Outstanding: 10,040,000
• 10 Day Avg. Volume: 4,414
• 30 Day Avg. Volume: 3,660
• PEG Ratio: -1.59
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -112.09
• 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: €41.00
• Price Target Upside: -4.43% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: €47.00 ▲(9.56%Upside)

The company exhibits strong financial performance with consistent revenue growth and robust profitability, offsetting concerns about increased debt. Technical analysis indicates a strong upward momentum, though there's caution as the stock approaches overbought levels. The valuation reflects a balance between a high P/E ratio and an attractive dividend yield, making the stock moderately appealing.

init innovation in traffic systems Business Overview & Revenue Model

Company Description

init innovation in traffic systems SE provides intelligent transportation systems solutions for public transportation worldwide. It develops, produces, integrates, installs, and maintains software and hardware products for transport companies. The company offers planning and dispatching, ticketing and fare management, analyzing and optimizing, and operations control and real-time passenger information, as well as customer support and operation solutions. init innovation in traffic systems SE was founded in 1983 and is based in Karlsruhe, Germany.

How the Company Makes Money

Init Innovation in Traffic Systems makes money primarily through the sale and implementation of its transportation technology solutions. The company's key revenue streams include contracts with public transit agencies for the deployment of its fare collection systems and fleet management software. Additionally, IXX generates revenue from ongoing service agreements, software licensing, and maintenance contracts, ensuring the continued operation and support of its systems. Strategic partnerships with technology providers and transit authorities also play a significant role in expanding their market reach and enhancing product offerings, contributing to their overall earnings.

init innovation in traffic systems Financial Statement Overview

Summary

init innovation in traffic systems demonstrates strong financial health with consistent revenue growth and solid profitability metrics. The balance sheet is robust, supported by a strong equity base and manageable debt levels. Cash flow is improving, indicating effective cash management. While there is an increase in debt, the company's solid profitability and cash flow generation mitigate potential risks, positioning it well for future growth.

Income Statement

The company has shown solid revenue growth over the past year, with a notable increase from $210.8M to $265.7M, translating to a growth rate of approximately 26.0%. The gross profit margin is healthy, averaging around 34% over the years, indicating strong cost management. The net profit margin has been consistent, with the latest year at 5.8%, slightly lower than the previous years but still stable. EBIT and EBITDA margins are robust, reflecting efficient operations and control over expenses.

Balance Sheet

The balance sheet is strong with a healthy equity ratio of around 42.9%, indicating a solid asset base supported by equity. The debt-to-equity ratio stands at approximately 0.73, showcasing reasonable leverage. Return on equity is consistent, with the latest figure at 11.5%, reflecting efficient use of equity to generate profits. However, there is an increase in total debt, which could pose a risk if not managed carefully.

Cash Flow

Cash flow from operations is positive and growing, with a notable increase in free cash flow from a negative position last year to $4.2M, indicating improved cash generation capabilities. The operating cash flow to net income ratio is around 0.70, suggesting a good conversion of income into cash. The free cash flow to net income ratio has improved significantly, reflecting a positive trajectory in cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	265.67M	210.80M	191.25M	176.66M	180.67M
Gross Profit	91.62M	80.39M	76.56M	62.67M	62.17M
EBITDA	39.08M	32.61M	31.28M	27.39M	28.70M
Net Income	15.46M	15.19M	16.52M	12.41M	14.92M
Balance Sheet
Total Assets	313.03M	260.48M	245.75M	216.90M	226.65M
Cash, Cash Equivalents and Short-Term Investments	23.55M	27.33M	40.08M	28.20M	32.25M
Total Debt	98.56M	69.28M	62.54M	44.96M	54.56M
Total Liabilities	178.72M	139.91M	129.19M	114.28M	136.12M
Stockholders Equity	134.19M	120.16M	116.36M	102.40M	90.33M
Cash Flow
Free Cash Flow	4.21M	-4.28M	14.41M	12.33M	17.29M
Operating Cash Flow	10.84M	7.98M	24.38M	16.01M	24.44M
Investing Cash Flow	-23.96M	-13.45M	-10.54M	-3.40M	-14.63M
Financing Cash Flow	8.49M	-6.80M	-2.22M	-17.74M	-2.80M

init innovation in traffic systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:IXX, the sentiment is Positive. The current price of 42.9 is above the 20-day moving average (MA) of 38.91, above the 50-day MA of 38.99, and above the 200-day MA of 37.49, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 66.88 is Neutral, neither overbought nor oversold. The STOCH value of 86.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:IXX.

init innovation in traffic systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IXX	76 Outperform	€427.25M	29.04	11.37%	1.86%	28.24%	-24.14%
Sector *	68 Neutral	¥234.20B	14.80	7.50%	2.60%	9.27%	6.74%
0N5I	―	€573.96M	73.42	4.09%	0.88%	―	―
0JCO	―	€255.08M	15.69	15.04%	3.18%	―	―
0O2W	―	€488.61M	13.52	16.30%	2.71%	―	―
0NJB	―	€523.66M	23.39	17.51%	―	―	―
0W19	―	€508.19M	20.44	16.57%	1.64%	―	―