Netfonds AG (NF4) AI Stock Analysis

• Market Cap: €104.35M
• Dividend Yield: 0.78%
• Average Volume (3M): 653.00
• Price to Earnings (P/E): 58.9
• Beta (1Y): 0.18
• Revenue Growth: 23.63%
• EPS Growth: N/A
• Country: DE
• Employees: 332
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 2,329,310
• 10 Day Avg. Volume: 1,237
• 30 Day Avg. Volume: 653
• PEG Ratio: -0.07
• Price to Book (P/B): 4.50
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -14.09
• 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): 1.77
• Revenue Forecast (FY): €137.58M

• Rating: 46 Neutral
• Price Target: €44.00 ▼(-1.79% Downside)

Netfonds AG's overall stock score is primarily influenced by its strong revenue growth and operational efficiency. However, significant concerns about financial stability due to low profitability margins, increased leverage, and negative cash flows weigh heavily on the score. Additionally, technical indicators suggest weak market momentum, and the high P/E ratio points to potential overvaluation.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates successful market expansion and product adoption, strengthening its competitive position.

Operational Efficiency

High EBIT and EBITDA margins reflect strong operational efficiency, enabling the company to maximize profitability from its revenue streams.

Free Cash Flow Growth

Despite originating from a negative base, the significant growth in free cash flow suggests potential for improved liquidity and investment capacity.

Negative Factors

Low Profitability Margins

Low profitability margins may indicate challenges in cost management, potentially impacting long-term financial sustainability and shareholder returns.

Increased Leverage

Higher reliance on debt financing could pose financial risks, especially if not managed carefully, affecting the company's balance sheet health.

Negative Operating Cash Flow

Negative operating cash flow highlights potential liquidity issues, which could constrain the company's ability to fund operations and growth initiatives.

Netfonds AG Business Overview & Revenue Model

Company Description

Netfonds AG (NF4) is a financial services company based in Germany that specializes in providing comprehensive brokerage and investment solutions for private and institutional investors. The company operates primarily in the financial technology sector, offering a range of products and services including online trading platforms, investment advisory, and asset management solutions. Through its innovative technology and user-friendly interfaces, Netfonds AG aims to facilitate seamless trading experiences and enhance financial decision-making for its clients.

How the Company Makes Money

Netfonds AG generates revenue through multiple streams, primarily by charging commissions and fees on trades executed through its online trading platforms. The company also earns income from asset management services, where it manages investments for clients and charges a percentage of the assets under management as a fee. Additionally, Netfonds AG may derive revenue from partnerships with financial institutions and other service providers, which can include referral fees or revenue-sharing agreements. The company's ability to attract a large user base and retain clients through competitive pricing and robust technology plays a significant role in its overall earnings.

Netfonds AG Financial Statement Overview

Summary

Netfonds AG shows strong revenue growth and operational efficiency with high EBIT and EBITDA margins. However, low profitability margins, increased leverage, and concerning cash flow issues indicate potential financial stability risks.

Income Statement

Netfonds AG shows a strong revenue growth rate of 97.17% in the latest year, indicating robust expansion. However, the gross profit margin is relatively low at 9.71%, and the net profit margin is modest at 1.09%. The EBIT and EBITDA margins are exceptionally high at 81.42%, suggesting efficient operational management. Despite the impressive growth, the low profitability margins indicate potential challenges in cost management.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.22, indicating a higher reliance on debt financing, which could pose a risk if not managed carefully. The return on equity is moderate at 11.59%, reflecting a decent return for shareholders. The equity ratio stands at 20.54%, suggesting a balanced approach to financing, though the increased leverage could be a concern.

Cash Flow

Netfonds AG's cash flow situation is concerning, with negative operating cash flow and free cash flow. The free cash flow growth rate is positive at 481.51%, but this is from a negative base, indicating volatility. The operating cash flow to net income ratio is negative, highlighting potential liquidity issues. The free cash flow to net income ratio is positive at 1.73, suggesting some ability to cover net income, but overall cash flow management needs improvement.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	239.33M	194.62M	176.45M	204.23M	145.84M
Gross Profit	23.24M	20.69M	30.85M	45.03M	27.67M
EBITDA	199.58M	4.87M	6.81M	16.10M	4.67M
Net Income	2.60M	-620.88K	850.09K	8.40M	-15.00K
Balance Sheet
Total Assets	109.16M	72.26M	63.66M	68.68M	75.37M
Cash, Cash Equivalents and Short-Term Investments	16.02M	4.24M	6.41M	4.89M	12.36M
Total Debt	27.36M	10.40M	9.12M	6.99M	25.86M
Total Liabilities	83.24M	50.81M	41.23M	46.52M	61.48M
Stockholders Equity	22.42M	20.66M	22.14M	21.93M	13.95M
Cash Flow
Free Cash Flow	-7.17M	-1.23M	-506.00K	-19.93M	1.75M
Operating Cash Flow	-4.16M	1.50M	2.62M	-18.86M	4.37M
Investing Cash Flow	-13.28M	-3.61M	-2.62M	-12.45M	-8.65M
Financing Cash Flow	17.25M	-68.00K	1.07M	22.50M	11.77M

Netfonds AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NF4, the sentiment is Positive. The current price of 44.8 is above the 20-day moving average (MA) of 44.62, below the 50-day MA of 45.10, and above the 200-day MA of 43.82, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:NF4.

Netfonds AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
A7A	48 Neutral	€135.16M	―	―	―	―	―
NF4	46 Neutral	€104.35M	58.94	―	0.78%	23.63%	―
LRND	45 Neutral	€19.59M	5.70	―	―	38.50%	―