KPS AG (KSC) AI Stock Analysis

• Market Cap: €30.45M
• Dividend Yield: N/A
• Average Volume (3M): 16.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -15.56%
• EPS Growth: -100.13%
• Country: DE
• Employees: 577
• Sector: Technology
• Sector Strength: 81
• Industry: Information Technology Services
• EPS (TTM): <0.01
• Shares Outstanding: 41,153,300
• 10 Day Avg. Volume: 27,853
• 30 Day Avg. Volume: 16,923
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 51.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: €1.00 ▲(51.52% Upside)

The overall score reflects the financial challenges KPS AG is facing, particularly in revenue and profitability, offset by stable cash flows. Technical indicators and valuation suggest bearish sentiment and potential overvaluation, contributing to the lower score.

KPS AG Business Overview & Revenue Model

Company Description

KPS AG (KSC) is a leading consulting and software company specializing in digital transformation and process optimization for various industries, including retail, manufacturing, and logistics. The company focuses on providing innovative solutions that enhance operational efficiency and customer engagement through its core offerings in consulting services, software development, and system integration. KPS AG leverages its expertise in enterprise resource planning (ERP) systems, e-commerce platforms, and cloud-based solutions to help clients navigate the complexities of digital change.

How the Company Makes Money

KPS AG generates revenue primarily through consulting services, where it charges clients for strategic advisory and implementation support in digital transformation projects. The company also earns income from software licensing and subscription fees associated with its proprietary solutions and tools. Key revenue streams include project-based fees for consulting engagements, ongoing maintenance and support services, and performance-based incentives tied to the success of implemented solutions. Additionally, KPS AG forms strategic partnerships with technology providers and industry leaders, which not only enhances its service offerings but also creates opportunities for joint ventures and shared revenue models, contributing significantly to its overall earnings.

KPS AG Financial Statement Overview

Summary

KPS AG is facing revenue contraction and profitability issues, with a negative net income and decreasing margins. However, it maintains positive operating cash flow, indicating effective cash management despite challenges.

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
EBITDA	6.00M	7.81M	21.52M	21.64M	22.74M
Net Income	-23.37M	-1.25M	9.55M	8.73M	8.14M
Balance Sheet
Total Assets	127.60M	162.74M	160.06M	160.41M	174.01M
Cash, Cash Equivalents and Short-Term Investments	12.08M	6.90M	6.06M	8.06M	20.11M
Total Debt	49.34M	53.29M	43.98M	47.67M	61.33M
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: Negative
• Last Price: 0.66
• 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:KSC, the sentiment is Negative. The current price of 0.66 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.76, and below the 200-day MA of 0.80, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 71.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:KSC.

KPS AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.56B	8.62	-10.46%	1.86%	8.47%	-8.26%
KSC	55 Neutral	€30.45M	―	-31.92%	―	-15.56%	-100.13%
0JCO	―	€227.18M	13.50	15.12%	―	―	―
0CHZ	―	€111.62M	―	-3.48%	―	―	―
0G73	―	€38.16M	―	-4.49%	―	―	―
OBS	66 Neutral	€55.40M	15.82	10.88%	1.71%	2.84%	21.48%
T3T1	―	€19.42M	13.95	21.47%	―	―	―