LS Telcom (LSX) AI Stock Analysis

• Market Cap: €23.40M
• Dividend Yield: N/A
• Average Volume (3M): 2.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -3.15%
• EPS Growth: -44.42%
• Country: DE
• Employees: 288
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): -0.19
• Shares Outstanding: 5,817,000
• 10 Day Avg. Volume: 2,943
• 30 Day Avg. Volume: 2,349
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -57.40
• 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: €4.00
• Price Target Upside: 3.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: €4.00 ▲(3.09% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and profitability margins. Technical analysis provides some positive signals with short-term bullish momentum, but valuation concerns due to negative profitability weigh heavily on the score.

LS Telcom Business Overview & Revenue Model

Company Description

LS Telcom AG (LSX) is a global leader in telecommunication and spectrum management solutions, specializing in services that optimize the use of radio frequencies. The company operates primarily in the telecommunications sector, providing software solutions, consulting services, and technical support to government agencies, telecom operators, and private enterprises. Its core products include spectrum management software, radio network planning tools, and solutions for frequency allocation and licensing, catering to both public and private sectors.

How the Company Makes Money

LS Telcom generates revenue through several key streams. Primarily, the company earns income from software sales and licensing, offering its proprietary software solutions to clients in need of spectrum management and radio network planning. Additionally, LS Telcom provides consulting services, which involve advising clients on spectrum regulations and optimizing radio frequency usage. Maintenance and support services for their software products also contribute to recurring revenue. The company has established significant partnerships with governmental agencies and telecom operators, allowing it to secure contracts that further bolster its earnings. Furthermore, LS Telcom may engage in project-based work, which can provide substantial financial returns on specific assignments, especially in developing or enhancing national communication infrastructures.

LS Telcom Financial Statement Overview

Summary

LS Telcom is experiencing financial stress with declining revenue and profitability margins. Despite these challenges, the company maintains a strong operating cash flow, although free cash flow is negative. The balance sheet shows increased leverage, posing a risk if profitability does not improve.

Income Statement

The company has experienced a decline in revenue over the past year, with a revenue decrease of 11.5% from the previous year. The gross profit margin remains high at 90.4%, but the company has shifted from a positive EBIT to a negative EBIT, and the net income margin has turned negative, indicating profitability challenges.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, but it remains manageable at 0.87. Stockholders' equity has decreased, and the equity ratio stands at 34.5%. These factors highlight a moderate financial stability with some risk due to increasing liabilities.

Cash Flow

Operating cash flow remains strong and has grown over the past year. However, free cash flow is negative, although it has improved compared to the previous year. The operating cash flow to net income ratio is favorable, suggesting that cash generation relative to reported earnings is solid.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.99M	36.90M	41.71M	47.27M	31.59M	25.80M
Gross Profit	18.36M	33.36M	35.91M	6.99M	4.19M	2.26M
EBITDA	3.40M	3.55M	6.17M	8.31M	6.03M	2.09M
Net Income	-2.68M	-3.60M	-213.00K	1.98M	-113.00K	-2.19M
Balance Sheet
Total Assets	39.04M	41.17M	41.20M	42.96M	45.43M	40.56M
Cash, Cash Equivalents and Short-Term Investments	2.08M	7.09M	4.95M	6.75M	11.41M	11.78M
Total Debt	11.29M	12.36M	8.63M	8.61M	11.88M	13.52M
Total Liabilities	26.05M	26.85M	23.22M	24.62M	29.07M	24.43M
Stockholders Equity	13.10M	14.20M	17.90M	18.29M	16.18M	16.20M
Cash Flow
Free Cash Flow	-3.14M	-327.00K	-1.19M	-895.00K	1.44M	2.72M
Operating Cash Flow	2.18M	5.74M	5.08M	4.68M	5.91M	6.79M
Investing Cash Flow	-5.27M	-5.99M	-6.24M	-5.58M	-4.47M	-4.04M
Financing Cash Flow	-3.28M	2.43M	-350.00K	-4.02M	-1.86M	6.88M

LS Telcom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.88
• 50DMA: Positive
• 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:LSX, the sentiment is Positive. The current price of 3.88 is above the 20-day moving average (MA) of 3.75, above the 50-day MA of 3.85, and below the 200-day MA of 3.97, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 79.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:LSX.

LS Telcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
E4C	59 Neutral	€47.84M	23.86	8.12%	2.20%	3.82%	40.13%
CLIQ	54 Neutral	€16.72M	0.91	-31.39%	3.12%	―	―
LSX	53 Neutral	€23.40M	―	-18.53%	―	-3.15%	-44.42%
TGT	46 Neutral	€17.05M	172.06	2.93%	―	-2.20%	―