NFON AG (NFN) AI Stock Analysis

• Market Cap: €91.09M
• Dividend Yield: N/A
• Average Volume (3M): 7.87K
• Price to Earnings (P/E): 100.5
• Beta (1Y): 0.33
• Revenue Growth: 6.31%
• EPS Growth: -8.83%
• Country: DE
• Employees: 420
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.03
• Shares Outstanding: 16,561,125
• 10 Day Avg. Volume: 4,681
• 30 Day Avg. Volume: 7,872
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: €6.00 ▲(8.11% Upside)

NFON AG's overall stock score is primarily influenced by its stable financial performance, despite cash flow volatility and operational efficiency challenges. The technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation. These factors collectively result in a moderate stock score.

NFON AG Business Overview & Revenue Model

Company Description

NFON AG is a leading provider of cloud-based communication solutions based in Germany. The company specializes in Unified Communications as a Service (UCaaS), offering a wide range of products and services including voice over IP (VoIP), telephony, and collaborative tools designed for businesses of all sizes. NFON operates primarily in the telecommunications sector, focusing on delivering innovative and scalable communication solutions that enhance connectivity and productivity for its clients across Europe.

How the Company Makes Money

NFON AG generates revenue primarily through subscription-based models for its cloud communications services. The company offers various pricing plans tailored to different business needs, allowing customers to pay monthly or annually for access to its UCaaS solutions. Key revenue streams include fees from voice services, additional features, and user licenses. Additionally, NFON benefits from strategic partnerships with technology providers and telecommunications companies, which help expand its service offerings and market reach. The company also invests in continuous product development and customer support to retain existing clients and attract new ones, thereby contributing to its overall earnings.

NFON AG Financial Statement Overview

Summary

NFON AG shows strong revenue and cash flow growth, with a solid capital structure and low leverage. However, historical profitability volatility suggests caution despite recent improvements.

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	88.99M	87.34M	82.34M	80.79M	75.89M	67.60M
Gross Profit	43.84M	43.41M	24.65M	35.95M	61.44M	53.60M
EBITDA	10.76M	10.71M	6.98M	-5.26M	-2.13M	2.34M
Net Income	906.00K	710.00K	-802.00K	-15.58M	-8.91M	-2.24M
Balance Sheet
Total Assets	87.09M	89.78M	73.91M	69.42M	83.51M	73.76M
Cash, Cash Equivalents and Short-Term Investments	11.23M	13.72M	12.28M	13.61M	28.06M	23.03M
Total Debt	14.38M	14.82M	9.90M	5.86M	5.01M	15.27M
Total Liabilities	38.16M	41.44M	26.75M	21.62M	20.28M	28.18M
Stockholders Equity	48.93M	48.34M	47.16M	47.80M	63.23M	45.58M
Cash Flow
Free Cash Flow	5.15M	6.42M	977.00K	-12.41M	-9.65M	-6.45M
Operating Cash Flow	8.25M	9.41M	6.84M	-3.87M	-1.76M	1.15M
Investing Cash Flow	-14.88M	-12.90M	-5.87M	-8.45M	-8.48M	-7.69M
Financing Cash Flow	3.90M	4.16M	-1.94M	-2.08M	14.82M	-6.81M

NFON AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.55
• 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:NFN, the sentiment is Negative. The current price of 5.55 is below the 20-day moving average (MA) of 5.76, below the 50-day MA of 6.17, and below the 200-day MA of 6.49, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 31.49 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:NFN.

NFON AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBS	―	€54.92M	16.22	10.88%	1.74%	2.84%	21.48%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NFN	―	€91.09M	100.55	1.87%	―	6.31%	-8.83%
QBY	―	€109.38M	―	-3.48%	―	-0.86%	71.61%