Klassik Radio AG (KA8) AI Stock Analysis

• Market Cap: €17.18M
• Dividend Yield: 4.87%
• Average Volume (3M): 103.00
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.29
• Revenue Growth: -0.74%
• EPS Growth: 31.08%
• Country: DE
• Employees: 53
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.21
• Shares Outstanding: 4,825,000
• 10 Day Avg. Volume: 305
• 30 Day Avg. Volume: 103
• PEG Ratio: -3.92
• Price to Book (P/B): 5.16
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 7.18
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €4.00 ▲(29.03% Upside)

Overall score reflects a solid financial foundation (low leverage, healthy ROE, and strong margins) tempered by meaningful revenue and free-cash-flow decline. Technically, the uptrend is intact, but overbought indicators increase near-term risk. A supportive dividend yield helps valuation, while the P/E remains only moderate.

Positive Factors

Low financial leverage

Very low debt-to-equity and a strong equity ratio indicate durable capital structure and low refinancing risk. This supports long-term stability, preserves investment flexibility for content and digital initiatives, and reduces vulnerability to interest-rate shocks.

Strong gross margin and positive profitability

High gross margins show the business captures substantial value from content and distribution, while a positive net margin demonstrates ability to cover fixed costs. These margins support resilient profitability even with revenue variability and enable strategic reinvestment.

Solid cash-generation metrics

Operating cash flow exceeds reported income and a high FCF conversion rate indicate earnings largely convert to cash. That persistent cash generation underpins dividend capacity, content spending and partnership investment without immediate reliance on new debt.

Negative Factors

Sharp revenue decline

A material annual revenue drop erodes scale and advertiser reach, weakening pricing leverage and sponsorship appeal. If sustained, this reduces fixed-cost absorption, constrains marketing and digital investment, and limits the firm's ability to regain growth momentum.

Declining free cash flow growth

A notable fall in FCF growth reduces available internal funding for content, platform upgrades and strategic initiatives. Over multiple quarters this can force cuts to reinvestment or reliance on external funding, limiting long-term competitiveness and strategic optionality.

Limited scale and reach

Small headcount and limited trading/liquidity reflect constrained scale versus national media rivals. This limits content production capacity, distribution bargaining power with advertisers and partners, and the ability to absorb rising fixed costs while expanding audience.

Klassik Radio AG Business Overview & Revenue Model

Company Description

Klassik Radio AG (KA8) is a prominent German media company specializing in the broadcasting of classical music and related content. The company operates a range of radio stations and digital platforms, offering a diverse selection of classical music along with cultural programming. Klassik Radio AG aims to enrich the listening experience by providing high-quality audio and engaging content, catering to a broad audience of classical music enthusiasts and cultural connoisseurs.

How the Company Makes Money

Klassik Radio AG generates revenue primarily through advertising sales, leveraging its radio broadcasts and digital platforms to attract businesses looking to reach a targeted audience. The company offers various advertising formats, including traditional radio spots, online ads, and sponsorship opportunities. Additionally, Klassik Radio AG monetizes its content through partnerships with cultural institutions and events, which may include co-branding initiatives and ticket sales for sponsored events. The company may also explore revenue from subscription services or premium content offerings, although specifics on these areas are not available.

Klassik Radio AG Financial Statement Overview

Summary

Klassik Radio AG shows strong profitability margins and a robust balance sheet with low leverage. However, the significant decline in revenue and free cash flow growth poses challenges. The company needs to focus on reversing revenue declines and enhancing cash flow generation to sustain long-term growth.

Income Statement

Klassik Radio AG has shown fluctuating revenue trends with a significant decline of 26.6% in the most recent year, indicating potential challenges in maintaining revenue growth. However, the company has managed to maintain a positive net profit margin of 3.02% and a gross profit margin of 62.39%, suggesting operational efficiency. The EBIT and EBITDA margins are stable, reflecting consistent operational performance despite revenue volatility.

Balance Sheet

The company's balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.11, indicating low financial leverage and reduced risk. Return on equity is healthy at 17.12%, showcasing effective use of shareholder funds. The equity ratio stands at 40.41%, highlighting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 15.63%, which could impact future investment capabilities. However, the operating cash flow to net income ratio of 1.21 indicates strong cash generation relative to net income. The free cash flow to net income ratio of 0.83 suggests that a substantial portion of earnings is converted into free cash flow, supporting financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.95M	19.42M	19.83M	17.26M	15.01M	14.69M
Gross Profit	7.07M	12.11M	6.39M	9.63M	9.02M	9.13M
EBITDA	1.90M	2.05M	2.35M	1.86M	2.43M	1.63M
Net Income	759.00K	586.00K	638.00K	544.00K	1.36M	87.00K
Balance Sheet
Total Assets	7.56M	8.47M	19.35M	20.21M	21.77M	17.04M
Cash, Cash Equivalents and Short-Term Investments	147.00K	933.00K	326.00K	512.00K	2.63M	5.68M
Total Debt	1.17M	375.00K	6.17M	6.64M	8.29M	3.29M
Total Liabilities	5.90M	5.05M	10.48M	11.26M	12.35M	7.96M
Stockholders Equity	1.66M	3.42M	8.87M	8.96M	9.43M	9.08M
Cash Flow
Free Cash Flow	100.00K	2.46M	1.19M	18.00K	-1.35M	1.12M
Operating Cash Flow	224.00K	2.96M	1.64M	573.00K	106.00K	1.49M
Investing Cash Flow	-415.00K	-435.00K	-392.00K	-555.00K	-1.46M	-357.00K
Financing Cash Flow	-925.00K	-1.92M	-1.43M	-2.13M	-1.70M	1.65M

Klassik Radio AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.10
• 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:KA8, the sentiment is Positive. The current price of 3.1 is above the 20-day moving average (MA) of 3.08, below the 50-day MA of 3.11, and below the 200-day MA of 3.29, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 80.49 is Negative, neither overbought nor oversold. The STOCH value of 96.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:KA8.

Klassik Radio AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDL	68 Neutral	€112.49M	10.31	18.72%	6.85%	-0.48%	-13.65%
KA8	66 Neutral	€17.18M	20.85	17.66%	4.87%	-0.74%	31.08%
CLIQ	63 Neutral	€11.75M	-0.29	-43.92%	5.87%	―	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%