Lang & Schwarz AG (LUS1) AI Stock Analysis

• Market Cap: €184.51M
• Dividend Yield: 8.95%
• Average Volume (3M): 7.51K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.96
• Revenue Growth: 36.62%
• EPS Growth: 23.21%
• Country: DE
• Employees: 69
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Capital Markets
• EPS (TTM): 2.81
• Shares Outstanding: 9,438,000
• 10 Day Avg. Volume: 7,747
• 30 Day Avg. Volume: 7,515
• 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: €22.00
• Price Target Upside: 12.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: €22.00 ▲(12.53% Upside)

Lang & Schwarz AG's overall stock score is driven by its strong valuation, with a low P/E ratio and high dividend yield suggesting potential undervaluation and attractive income. However, technical analysis indicates bearish momentum, with the stock trading below key moving averages and approaching oversold conditions. Financial performance is solid but hampered by cash flow volatility, which needs addressing to improve the overall outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Profitability Improvement

Improved profitability margins suggest better operational efficiency and cost management, enhancing the company's competitive position.

Debt Management

Reducing net debt enhances financial stability and flexibility, allowing for more strategic investments and growth opportunities.

Negative Factors

Cash Flow Volatility

Negative operating cash flow indicates potential challenges in cash generation, which could impact the company's ability to fund operations and growth.

Asset Management Variability

Fluctuating asset management metrics can lead to instability in financial performance, affecting investor confidence and strategic planning.

Revenue Decline

A decline in revenue suggests potential market challenges or competitive pressures that could hinder long-term growth prospects.

Lang & Schwarz AG Business Overview & Revenue Model

Company Description

Lang & Schwarz AG (LUS1) is a German-based financial services company primarily engaged in the securities trading sector. The company specializes in providing a wide array of financial products and services, including market making, over-the-counter (OTC) trading, and the development and issuance of derivative financial instruments. It serves both institutional and private investors, offering them innovative solutions to meet their diverse financial needs.

How the Company Makes Money

Lang & Schwarz AG generates revenue through several key streams. Primarily, the company earns money by acting as a market maker, facilitating liquidity by buying and selling financial securities and derivatives. They profit from the bid-ask spread—the difference between the buying price and the selling price. Additionally, Lang & Schwarz engages in proprietary trading, where they use their own capital to trade financial instruments to generate returns. The company also profits from issuing structured financial products such as warrants and certificates, often tailored to meet specific investment strategies. Furthermore, Lang & Schwarz benefits from partnerships with various financial institutions and online trading platforms, which help expand their market reach and customer base.

Lang & Schwarz AG Financial Statement Overview

Summary

Lang & Schwarz AG demonstrates solid revenue growth and improving profitability, particularly in EBIT and EBITDA margins. The balance sheet reflects moderate leverage and improved ROE, but asset management shows variability. Cash flow analysis indicates volatility, with recent negative operating cash flow suggesting potential cash generation issues. Overall, the company is on a positive trajectory but should address cash flow stability.

Income Statement

Lang & Schwarz AG shows a strong revenue growth trajectory over the years with significant improvement in EBIT and EBITDA margins. However, there is a notable decline in total revenue from 2021 to 2022. The gross profit margin has consistently increased, indicating effective cost management. Net profit margin has improved, showcasing enhanced profitability.

Balance Sheet

The company's debt-to-equity ratio is moderate, suggesting a balanced approach to leveraging. However, the equity ratio fluctuates, indicating potential volatility in asset management. Return on equity has improved, showcasing better utilization of shareholder funds.

Cash Flow

Free cash flow has been inconsistent, with significant fluctuations over the years. Operating cash flow is negative in the latest period, which could indicate challenges in cash generation. However, there has been a reduction in net debt, which is a positive sign.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	739.52M	485.28M	754.01M	839.33M	692.27M
Gross Profit	86.07M	27.86M	41.76M	94.68M	79.01M
EBITDA	56.02M	14.62M	15.81M	64.44M	29.02M
Net Income	22.12M	7.64M	8.77M	20.98M	10.53M
Balance Sheet
Total Assets	870.20M	723.27M	687.02M	982.95M	811.53M
Cash, Cash Equivalents and Short-Term Investments	855.99M	125.53M	201.84M	176.69M	129.96M
Total Debt	66.92M	39.65M	21.12M	45.48M	97.23M
Total Liabilities	810.14M	680.34M	646.03M	936.57M	773.55M
Stockholders Equity	59.50M	42.58M	40.99M	46.38M	37.98M
Cash Flow
Free Cash Flow	-9.59M	-49.99M	-256.26M	230.38M	332.59M
Operating Cash Flow	-8.54M	-48.87M	-253.94M	230.96M	333.11M
Investing Cash Flow	-1.05M	-1.86M	276.04M	-152.33M	301.00K
Financing Cash Flow	-4.99M	-5.69M	-14.16M	-12.58M	0.00

Lang & Schwarz AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LUS1, the sentiment is Negative. The current price of 19.55 is below the 20-day moving average (MA) of 20.39, below the 50-day MA of 21.00, and below the 200-day MA of 20.47, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 20.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:LUS1.

Lang & Schwarz AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWB	71 Outperform	€274.14M	5.68	24.12%	2.30%	15.69%	268.17%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%
LUS1	64 Neutral	€184.51M	6.25	39.83%	8.95%	36.62%	23.21%
EUX	―	€257.50M	41.99	7.07%	6.38%	―	―
SB1	53 Neutral	€208.93M	―	-3.03%	―	―	―
T2G	―	€2.15B	53.61	19.09%	―	―	―
XTP	56 Neutral	€243.10M	―		―	―	―