Lang & Schwarz AG (LUS1) AI Stock Analysis

• Market Cap: €218.96M
• Dividend Yield: 8.03%
• Average Volume (3M): 11.07K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.97
• Revenue Growth: 36.62%
• EPS Growth: 23.21%
• Country: DE
• Employees: 69
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 9,438,000
• 10 Day Avg. Volume: 12,899
• 30 Day Avg. Volume: 11,069
• PEG Ratio: 0.04
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -18.90
• 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: 68 Neutral
• Price Target: €25.00 ▲(9.65% Upside)

The score is driven primarily by solid overall financial performance with improving profitability, tempered by weak and volatile cash flow (including negative latest operating cash flow). Valuation is a clear positive with a low P/E and high dividend yield. Technicals are mixed, with near-term weakness versus short-term averages but support versus longer-term averages and a positive MACD.

Positive Factors

Improving margins and profitability

Consistent margin improvement and rising profitability indicate durable operational leverage and stronger cost control. For a market-making and execution firm, higher gross and net margins increase resilience to volume swings, support sustained earnings, and enable reinvestment in trading systems and liquidity capabilities.

Diversified capital-markets business model

Operating across brokerage/execution, market making, and trading venues creates diversified, transaction-driven revenue streams. That mix yields recurring fee and spread income, strengthens client stickiness, and aligns with structural growth in electronic trading and liquidity demand, supporting steady long-term cash generation.

Improved ROE and lower net debt

Improved return on equity coupled with a reduction in net debt enhances financial flexibility and reduces leverage sensitivity. This strengthens the firm’s capacity to meet market-making capital needs, invest in platform upgrades, and absorb periodic trading slowdowns without immediate refinancing pressure.

Negative Factors

Weak and volatile cash generation

Negative operating cash flow and erratic free cash flow undermine the company’s ability to self-fund operations, dividends, and platform investments. Persistent weak cash generation raises refinancing and liquidity risk, potentially forcing dependence on external funding or curtailing strategic spend during market stress.

Revenue volatility and past decline

A meaningful revenue drop between 2021 and 2022 highlights sensitivity to trading volumes and cyclicality. For a trading-dependent franchise, lumpy revenues reduce predictability, complicate resource planning, and can pressure margins and investment pacing when market activity contracts for extended periods.

Equity ratio volatility / asset-management variability

Fluctuations in the equity ratio point to inconsistent capital and asset management, increasing balance-sheet volatility. For a liquidity provider, unstable capital metrics can constrain regulatory buffers, raise funding costs, and limit the ability to scale market-making obligations during stressed markets.

Lang & Schwarz AG Business Overview & Revenue Model

Company Description

Lang & Schwarz Aktiengesellschaft, through its subsidiaries, engages in the development and issuance of derivative financial instruments in Germany. The company operates a platform for OTC trading that trades in stocks, funds, bonds, and ETPs; LS Exchange, an electronic trading system; and IT hardware and software services. Lang & Schwarz Aktiengesellschaft was founded in 1996 and is based in Düsseldorf, Germany.

How the Company Makes Money

Lang & Schwarz AG generates revenue primarily through its trading operations and market-making activities. The company earns money by capturing the bid-ask spread on trades, which occurs when it buys and sells financial instruments simultaneously. Additionally, it derives income from transaction fees, commissions on trades executed through its platforms, and fees for its electronic trading services provided to institutional clients. The company has established significant partnerships with various financial institutions and exchanges, enhancing its liquidity provision and trading capabilities, which contribute to its overall earnings.

Lang & Schwarz AG Financial Statement Overview

Summary

Income statement strength (78) shows improving profitability and margins despite a revenue drop from 2021 to 2022. Balance sheet is moderate (65) with reasonable leverage and improved ROE, but some variability in asset management. Cash flow is the main drag (52) due to volatile free cash flow and negative operating cash flow in the latest period, partially offset by reduced net debt.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	882.48M	739.52M	485.28M	754.01M	839.33M	692.27M
Gross Profit	627.49M	86.07M	27.86M	41.76M	94.68M	79.01M
EBITDA	66.66M	56.02M	14.62M	15.81M	64.44M	55.49M
Net Income	29.46M	22.12M	7.64M	8.77M	20.98M	10.53M
Balance Sheet
Total Assets	1.24B	870.20M	723.27M	687.02M	982.95M	811.53M
Cash, Cash Equivalents and Short-Term Investments	1.21B	855.99M	125.53M	201.84M	176.69M	129.96M
Total Debt	291.36M	66.92M	39.65M	21.12M	45.48M	97.23M
Total Liabilities	1.15B	810.14M	680.34M	646.03M	936.57M	773.55M
Stockholders Equity	86.04M	59.50M	42.58M	40.99M	46.38M	37.98M
Cash Flow
Free Cash Flow	0.00	-9.59M	-49.99M	-256.26M	230.38M	332.59M
Operating Cash Flow	0.00	-8.54M	-48.87M	-253.94M	230.96M	11.68M
Investing Cash Flow	0.00	-1.05M	-1.86M	276.04M	-152.33M	301.00K
Financing Cash Flow	0.00	-4.99M	-5.69M	-14.16M	-12.58M	0.00

Lang & Schwarz AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 22.8 is below the 20-day moving average (MA) of 23.96, below the 50-day MA of 23.11, and above the 200-day MA of 21.65, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 44.72 is Neutral, neither overbought nor oversold. The STOCH value of 51.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	77 Outperform	€334.79M	6.99	24.12%	1.91%	15.69%	268.17%
LUS1	68 Neutral	€218.96M	7.37	39.83%	8.03%	36.62%	23.21%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
XTP	56 Neutral	€231.41M	―	―	―	―	―
SB1	53 Neutral	€228.23M	-49.10	-10.06%	―	21.89%	29.26%