NFON AG (NFN) AI Stock Analysis

• Market Cap: €115.10M
• Dividend Yield: N/A
• Average Volume (3M): 6.12K
• Price to Earnings (P/E): 297.0
• Beta (1Y): 0.38
• Revenue Growth: 6.50%
• EPS Growth: N/A
• Country: DE
• Employees: 420
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 16,561,125
• 10 Day Avg. Volume: 5,296
• 30 Day Avg. Volume: 6,119
• PEG Ratio: -6.50
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.70
• 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: €6.50
• Price Target Upside: -6.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: €7.00 ▲(0.72%Upside)

The stock score is primarily influenced by strong financial performance and positive technical indicators. However, the high P/E ratio significantly impacts the valuation, suggesting the stock is overvalued.

NFON AG Business Overview & Revenue Model

Company Description

NFON AG is a Europe-based provider of cloud-based telecommunication services. The company specializes in offering Cloud PBX solutions, which are virtual phone systems hosted over the internet, eliminating the need for traditional on-premise telephone systems. NFON AG serves a broad spectrum of sectors, providing its services to small and medium-sized enterprises (SMEs) as well as larger corporations across multiple industries.

How the Company Makes Money

NFON AG generates revenue primarily through subscription-based models, where customers pay recurring fees for access to its cloud telephony services. The company's core revenue stream is its Cloud PBX product, which clients subscribe to on a per-user basis. Additionally, NFON AG earns income from supplementary services such as call center solutions, integration services, and premium voice features. Strategic partnerships with telecommunication providers and technology integrators also contribute to its revenue by expanding its market reach and enhancing service offerings. The company's earnings are significantly influenced by the adoption rates of cloud communication tools among businesses and the ongoing shift from traditional telephony to cloud-based solutions.

NFON AG Financial Statement Overview

Summary

NFON AG exhibits strong revenue and cash flow growth, with a solid capital structure and low leverage. However, historical profitability volatility suggests some caution.

Income Statement

NFON AG has demonstrated a positive trajectory in revenue growth, with a 6.07% increase from 2023 to 2024. Gross Profit Margin for 2024 is robust at 49.71%, indicating efficient cost management. Net Profit Margin improved from negative to 0.81%, reflecting better profitability. However, historical profitability has been volatile, with margins often in the negative range, suggesting potential risks in sustaining current performance levels.

Balance Sheet

The company's financial stability is supported by a healthy equity ratio of 53.85% in 2024, indicating strong capitalization. The debt-to-equity ratio is manageable at 0.31, suggesting low leverage risk. ROE improved but remains modest at 1.47% for 2024. Overall, the balance sheet reflects reasonable stability with low debt levels, although profitability improvements could enhance returns.

Cash Flow

Free Cash Flow has substantially increased, with a growth rate of 556.6% from 2023 to 2024, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income ratio is high at 13.26 for 2024, reflecting efficient cash conversion. The Free Cash Flow to Net Income ratio is also strong at 9.04, showcasing robust operational cash flow relative to net income. These metrics highlight a strong cash position with an upward trend in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.18M	87.34M	82.34M	80.79M	75.89M	67.60M
Gross Profit	43.87M	43.41M	24.65M	35.95M	61.44M	53.60M
EBITDA	10.77M	10.71M	6.98M	-5.26M	-2.13M	2.34M
Net Income	388.00K	710.00K	-802.00K	-15.58M	-8.91M	-2.24M
Balance Sheet
Total Assets	90.24M	89.78M	73.91M	69.42M	83.51M	73.76M
Cash, Cash Equivalents and Short-Term Investments	14.29M	13.72M	12.28M	13.61M	28.06M	23.03M
Total Debt	0.00	14.82M	9.90M	5.86M	5.01M	15.27M
Total Liabilities	41.71M	41.44M	26.75M	21.62M	20.28M	28.18M
Stockholders Equity	48.53M	48.34M	47.16M	47.80M	63.23M	45.58M
Cash Flow
Free Cash Flow	7.33M	6.42M	977.00K	-12.41M	-9.65M	-6.45M
Operating Cash Flow	10.32M	9.41M	6.84M	-3.87M	-1.76M	1.15M
Investing Cash Flow	-12.90M	-12.90M	-5.87M	-8.45M	-8.48M	-7.69M
Financing Cash Flow	4.01M	4.16M	-1.94M	-2.08M	14.82M	-6.81M

NFON AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NFN, the sentiment is Positive. The current price of 6.95 is above the 20-day moving average (MA) of 6.52, above the 50-day MA of 6.47, and above the 200-day MA of 6.14, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 90.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:NFN.

NFON AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBS	67 Neutral	€61.08M	15.27	12.59%	1.55%	-0.01%	47.45%
QBY	65 Neutral	€119.35M	―	-4.32%	―	1.09%	69.89%
Sector *	63 Neutral	$33.85B	5.90	-11.67%	1.83%	5.25%	-18.21%
NFN	59 Neutral	€115.10M	297.01	0.80%	―	6.50%	―