LS Telcom (LSX) AI Stock Analysis

• Market Cap: €22.13M
• Dividend Yield: N/A
• Average Volume (3M): 2.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• 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: 3,718
• 30 Day Avg. Volume: 2,003
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €4.50
• Price Target Upside: 21.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: €4.50 ▲(21.62% Upside)

The overall stock score of 51 reflects significant financial challenges, with declining revenue and negative profitability margins as the most impactful factors. The technical analysis suggests potential for recovery, but the current bearish indicators and unattractive valuation weigh heavily on the score. The company's strong operating cash flow provides some stability amidst these challenges.

LS Telcom Business Overview & Revenue Model

Company Description

LS telcom AG provides software, IT system, hardware, planning, and consultancy services for optimal spectrum use customers worldwide. The company offers its products in the areas of spectrum policy, licensing, and management; spectrum monitoring; radio communications and private networks; network planning tools; and airborne measurements. It serves customers in the spectrum regulation, public safety, public transportation, railways, airports, ports and hubs, industries, oil and gas utilities, defense and security, smart healthcare, mobile network operators, and broadcast industries. LS telcom AG was founded in 1992 and is headquartered in Lichtenau, Germany.

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 faces declining revenue and negative profitability margins, with a shift to negative EBIT and net income margin. The balance sheet shows increased leverage, which increases financial risk. However, operating cash flow remains strong, providing some stability despite negative free cash flow.

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	36.90M	36.90M	41.71M	47.27M	31.59M	25.80M
Gross Profit	3.68M	33.36M	35.91M	6.99M	4.19M	2.26M
EBITDA	3.50M	3.55M	6.17M	8.31M	6.03M	2.09M
Net Income	-3.60M	-3.60M	-213.00K	1.98M	-113.00K	-2.19M
Balance Sheet
Total Assets	41.17M	41.17M	41.20M	42.96M	45.43M	40.56M
Cash, Cash Equivalents and Short-Term Investments	7.09M	7.09M	4.95M	6.75M	11.41M	11.78M
Total Debt	12.36M	12.36M	8.63M	8.61M	11.88M	13.52M
Total Liabilities	26.85M	26.85M	23.22M	24.62M	29.07M	24.43M
Stockholders Equity	14.20M	14.20M	17.90M	18.29M	16.18M	16.20M
Cash Flow
Free Cash Flow	-641.00K	-327.00K	-1.19M	-895.00K	1.44M	2.72M
Operating Cash Flow	5.42M	5.74M	5.08M	4.68M	5.91M	6.79M
Investing Cash Flow	-6.01M	-5.99M	-6.24M	-5.58M	-4.47M	-4.04M
Financing Cash Flow	2.77M	2.43M	-350.00K	-4.02M	-1.86M	6.88M

LS Telcom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.70
• 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:LSX, the sentiment is Neutral. The current price of 3.7 is below the 20-day moving average (MA) of 3.71, below the 50-day MA of 4.01, and below the 200-day MA of 3.93, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 49.64 is Neutral, neither overbought nor oversold. The STOCH value of 49.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:LSX.

LS Telcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
E4C	66 Neutral	47.14M	23.69	8.30%	2.16%	3.82%	40.13%
CLIQ	54 Neutral	17.50M	-0.58	-39.12%	2.97%	0.00%	0.00%
LSX	51 Neutral	€22.13M	―	-18.53%	―	-3.15%	-44.42%
TGT	49 Neutral	17.05M	191.18	11.16%	―	-2.20%	0.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%