LS Telcom (LSX) AI Stock Analysis

• Market Cap: €22.71M
• Dividend Yield: N/A
• Average Volume (3M): 2.82K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.75
• Revenue Growth: -0.92%
• EPS Growth: N/A
• Country: DE
• Employees: 288
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.32
• Shares Outstanding: 5,817,000
• 10 Day Avg. Volume: 4,436
• 30 Day Avg. Volume: 2,819
• PEG Ratio: -0.21
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 23.12
• 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: 54 Neutral
• Price Target: €4.00 ▲(3.09% Upside)

The overall stock score of 54 reflects significant challenges in financial performance, particularly with declining revenue, profitability, and cash flow issues. While technical analysis indicates some short-term bullish momentum, the valuation suggests the stock is overvalued given its financial difficulties. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Diversified Revenue Model

A diversified revenue model with long-term contracts provides stability and reduces dependency on any single revenue stream, supporting financial resilience.

Public Sector Partnerships

Partnerships with governmental agencies ensure a steady income stream and enhance credibility, which can lead to more opportunities in the public sector.

Improved Debt-to-Equity Ratio

An improved debt-to-equity ratio suggests better financial management and reduced risk, enhancing the company's ability to invest in growth opportunities.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in market competitiveness and demand, potentially impacting long-term growth and profitability.

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity issues, limiting the company's ability to invest in new projects or weather economic downturns.

Low Profit Margins

Low profit margins indicate challenges in cost management and pricing power, which could hinder the company's ability to generate sustainable profits.

LS Telcom Business Overview & Revenue Model

Company Description

LS Telcom (LSX) is a global provider of software solutions and services for the telecommunications industry. The company specializes in spectrum management, network planning, and optimization, catering to both public and private sector clients. LS Telcom's core products include advanced software tools for frequency management, radio network planning, and regulatory compliance, enabling clients to efficiently manage their telecommunications resources and improve operational performance.

How the Company Makes Money

LS Telcom generates revenue primarily through the sale of software licenses, maintenance services, and consulting projects. The company's revenue model is diversified, with significant income derived from long-term contracts and one-time project-based sales. Key revenue streams include the licensing of its proprietary software solutions, ongoing maintenance and support services, and consulting services that assist clients in optimizing their network performance and compliance with regulatory standards. Additionally, LS Telcom often partners with governmental agencies and telecommunications operators, which provides a stable source of income through public sector contracts and collaborative projects aimed at improving national and regional communication infrastructures.

LS Telcom Financial Statement Overview

Summary

LS Telcom faces challenges with declining revenue and profitability, as well as negative free cash flow. While the balance sheet shows some improvement in leverage, the low return on equity and asset base reduction are concerns. The company needs to address its cash flow issues and improve operational efficiency to enhance financial stability and growth prospects.

Income Statement

LS Telcom's revenue has been declining over the past few years, with a notable decrease of 6.25% in the most recent year. The gross profit margin has significantly dropped from previous years, indicating challenges in maintaining cost efficiency. Despite a positive net income this year, the net profit margin remains low at 2.14%, reflecting limited profitability. The company has shown some improvement in EBIT and EBITDA margins, but overall profitability remains a concern.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.72, indicating a more balanced capital structure compared to previous years. However, the return on equity is relatively low at 5.25%, suggesting limited returns for shareholders. The overall asset base has decreased, which could impact future growth potential. The balance sheet shows some stability, but there are concerns about the company's ability to generate strong returns.

Cash Flow

Operating cash flow remains positive, but the free cash flow has significantly declined, with a negative growth rate of -128.24%. The operating cash flow to net income ratio indicates moderate coverage, but the negative free cash flow to net income ratio highlights challenges in generating surplus cash. The cash flow situation suggests potential liquidity issues if not addressed.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.56M	36.56M	36.90M	41.71M	47.27M	31.59M
Gross Profit	6.32M	6.32M	33.36M	35.91M	6.99M	4.19M
EBITDA	5.75M	5.75M	3.55M	6.17M	8.31M	6.03M
Net Income	782.00K	782.00K	-3.60M	-213.00K	1.98M	-113.00K
Balance Sheet
Total Assets	38.74M	38.74M	41.17M	41.20M	42.96M	45.43M
Cash, Cash Equivalents and Short-Term Investments	5.72M	5.72M	7.09M	4.95M	6.75M	11.41M
Total Debt	10.73M	10.73M	12.36M	8.63M	8.61M	11.88M
Total Liabilities	23.97M	23.97M	26.85M	23.22M	24.62M	29.07M
Stockholders Equity	14.90M	14.90M	14.20M	17.90M	18.29M	16.18M
Cash Flow
Free Cash Flow	1.10M	887.00K	-327.00K	-1.19M	-895.00K	1.44M
Operating Cash Flow	5.76M	5.55M	5.74M	5.08M	4.68M	5.91M
Investing Cash Flow	-4.58M	-4.58M	-5.99M	-6.24M	-5.58M	-4.47M
Financing Cash Flow	-2.14M	-2.14M	2.43M	-350.00K	-4.02M	-1.86M

LS Telcom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.88
• 50DMA: Positive
• 100DMA: Positive
• 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 3.85, above the 50-day MA of 3.76, and below the 200-day MA of 4.07, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.60 is Neutral, neither overbought nor oversold. The STOCH value of 51.52 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
CLIQ	63 Neutral	€10.21M	-0.25	-43.92%	5.87%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
E4C	59 Neutral	€42.57M	16.05	11.24%	2.44%	5.40%	193.69%
LSX	54 Neutral	€22.71M	29.04	5.37%	―	-0.92%	―
TGT	48 Neutral	€25.31M	-57.44	-14.65%	―	-3.43%	72.86%