KPS AG (KSC) AI Stock Analysis

• Market Cap: €34.73M
• Dividend Yield: N/A
• Average Volume (3M): 13.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -15.56%
• EPS Growth: -100.13%
• Country: DE
• Employees: 577
• Sector: Industrials
• Sector Strength: 85
• Industry: Information Technology Services
• EPS (TTM): <0.01
• Shares Outstanding: 41,153,300
• 10 Day Avg. Volume: 4,316
• 30 Day Avg. Volume: 13,633
• PEG Ratio: 0.90
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.50
• 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: €1.00
• Price Target Upside: 19.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: €1.00 ▲(19.05%Upside)

KPS AG's overall stock score of 53 reflects significant challenges, primarily driven by financial performance and valuation concerns. Revenue contraction and profitability issues weigh heavily, although stable cash flow provides some relief. Technical analysis shows mixed signals, with near-term support but longer-term resistance. Valuation metrics are unattractive, with no dividend yield and a negative P/E ratio, limiting investor appeal.

KPS AG Business Overview & Revenue Model

Company Description

KPS AG provides management consulting services in the areas of business transformation and process optimization in retail and consumer goods sectors in Germany and Europe. It offers advisory services on strategic, process, application, and technology issues relating to digital transformation, and supports its customers in rolling out and implementing solutions. The company also sells software licenses, maintenance contracts, and hardware components. KPS AG was founded in 1998 and is headquartered in Unterföhring, Germany.

How the Company Makes Money

KPS AG generates revenue through a combination of consultancy fees, implementation services, and post-implementation support. The company's primary revenue stream comes from providing strategic consulting services to its clients, where it guides businesses through complex transformation projects. Additionally, KPS AG earns significant income from the implementation of enterprise resource planning (ERP) systems and other digital technologies, which are often part of the transformation solutions they offer. The company also benefits from long-term partnerships with major software vendors, allowing them to deliver comprehensive and integrated solutions to their clients. These partnerships often result in recurring revenue streams from software licenses and maintenance contracts.

KPS AG Financial Statement Overview

Summary

KPS AG faces revenue contraction and profitability challenges, with declining income statement metrics. Despite net losses, the company maintains stable cash flow, supported by positive operating cash flows. While balance sheet stability is reassuring, increased leverage and negative equity returns pose risks.

Income Statement

KPS AG's revenue has declined over the years, with a notable drop of 18.2% from 2023 to 2024. The company reported a negative net income in 2024, leading to a negative net profit margin of -16.1%. The gross profit margin decreased to 15%, indicating pressure on profitability. EBIT margin also turned negative, highlighting operational challenges.

Balance Sheet

The debt-to-equity ratio remained stable, suggesting a balanced capital structure. However, the equity ratio decreased to 37.9% due to reduced stockholders' equity, indicating increased leverage. The return on equity turned negative, reflecting net losses, which is concerning for stakeholders.

Cash Flow

Despite negative net income, operating cash flow remained positive, suggesting effective cash management. The free cash flow remained stable, though the free cash flow to net income ratio was not calculable due to negative net income. The operating cash flow to net income ratio is positive, indicating operational resilience.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
145.41M	177.78M	179.53M	157.98M	166.45M
	Gross Profit
21.81M	29.37M	28.41M	36.41M	42.02M
	EBIT
-17.80M	34.00K	14.33M	13.41M	14.11M
	EBITDA
6.00M	7.81M	21.52M	21.64M	22.74M
	Net Income Common Stockholders
-23.37M	-1.25M	9.55M	8.73M	8.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.08M	6.90M	6.06M	8.06M	20.11M
	Total Assets
127.60M	162.74M	160.06M	160.41M	174.01M
	Total Debt
49.34M	53.29M	43.98M	47.67M	61.33M
	Net Debt
37.26M	46.39M	37.92M	39.61M	41.21M
	Total Liabilities
79.21M	95.55M	88.27M	91.39M	107.73M
	Stockholders Equity
48.40M	67.18M	71.79M	69.02M	66.28M
Cash Flow		Free Cash Flow
8.79M	8.85M	14.96M	15.55M	18.23M
	Operating Cash Flow
8.89M	9.24M	15.05M	17.02M	21.71M
	Investing Cash Flow
-1.29M	-7.50M	-4.64M	-6.18M	-14.84M
	Financing Cash Flow
-2.43M	-908.00K	-12.42M	-22.90M	3.39M

KPS AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KSC, the sentiment is Neutral. The current price of 0.84 is below the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.79, and above the 200-day MA of 0.82, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 36.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:KSC.

KPS AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
KSC	53 Neutral	€34.73M	―	-31.92%	―	-15.56%	-100.13%
0JCO		€273.01M	17.49	15.04%	2.84%	―	―
0CHZ		€109.63M	―	-4.32%	―	―	―
0G73		€34.62M	―	-5.74%	3.57%	―	―
OBS	74 Outperform	€69.13M	17.29	12.59%	1.39%	-0.01%	47.45%
T3T1		€19.61M	14.09	21.47%	―	―	―