NORMA Group SE (NOEJ) AI Stock Analysis

• Market Cap: €458.18M
• Dividend Yield: 2.77%
• Average Volume (3M): 133.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: -11.59%
• EPS Growth: -375.79%
• Country: DE
• Employees: 6,003
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -1.75
• Shares Outstanding: 31,862,400
• 10 Day Avg. Volume: 96,460
• 30 Day Avg. Volume: 133,987
• PEG Ratio: -0.69
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 5.80
• 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: €16.25
• Price Target Upside: 12.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €14.00 ▼(-3.18% Downside)

NORMA Group SE's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability. Technical analysis provides a mixed outlook with potential resistance levels. Valuation concerns are significant due to the negative P/E ratio, although the dividend yield offers some support. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Market Leadership

Being a market leader in engineered joining technologies provides NORMA Group with a competitive edge, enabling it to leverage its brand and expertise to maintain and expand its market share across various sectors.

Diverse Revenue Streams

Diversification across multiple sectors such as automotive and industrial applications reduces dependency on a single market, providing stability and resilience against sector-specific downturns.

Sustainability Focus

NORMA Group's focus on sustainability aligns with global trends towards eco-friendly solutions, potentially enhancing its appeal to environmentally conscious customers and partners, and ensuring long-term relevance.

Negative Factors

Declining Revenue

A decline in revenue indicates potential challenges in maintaining market share or demand, which could impact the company's ability to invest in growth and innovation over the long term.

Profitability Challenges

Reduced profitability margins suggest operational inefficiencies, which may hinder the company's ability to generate sufficient returns and reinvest in business development.

Cash Flow Decline

A significant decline in free cash flow can constrain the company's financial flexibility, limiting its ability to fund new projects, pay down debt, or return capital to shareholders.

NORMA Group SE Business Overview & Revenue Model

Company Description

NORMA Group SE is a global market leader in engineered joining technologies, specializing in the development and manufacture of high-quality clamping, connecting, and sealing solutions. The company operates in various sectors, including automotive, industrial, and infrastructure, providing products that cater to diverse applications such as fluid transport, water management, and air intake systems. NORMA Group's innovative solutions are known for their reliability and performance, serving customers worldwide with a commitment to sustainability and efficiency.

How the Company Makes Money

NORMA Group generates revenue primarily through the sale of its engineered joining products and solutions across multiple sectors. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and distribution partners, as well as aftermarket sales. Key revenue streams include automotive applications, where it provides components for fuel systems, cooling systems, and exhaust systems, and industrial applications, which encompass a wide range of sectors such as water management, chemical processing, and renewable energy. Additionally, NORMA Group has established significant partnerships with major automotive and industrial companies, enhancing its market presence and driving sales growth. The company's focus on innovation and sustainability also contributes to its earnings by meeting the evolving needs of customers in a competitive marketplace.

NORMA Group SE Financial Statement Overview

Summary

NORMA Group SE faces challenges in revenue growth and profitability, as reflected in the income statement. The balance sheet remains stable with moderate leverage, but profitability on equity is low. Cash flow generation is under pressure, with declining free cash flow growth. The company needs to focus on improving revenue growth and profitability to enhance its financial health.

Income Statement

NORMA Group SE's income statement shows mixed performance. The TTM data indicates a decline in revenue growth rate by 1.41%, and net profit margin is very low at 0.20%. However, the gross profit margin remains healthy at 37.41%, and the EBIT and EBITDA margins are moderate at 3.95% and 12.54%, respectively. The company needs to address declining revenues and improve profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.63, indicating moderate leverage. The return on equity is low at 0.33%, suggesting limited profitability on equity. The equity ratio is not explicitly calculated, but the company maintains a reasonable balance between debt and equity.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth by 20.18% in the TTM period. The operating cash flow to net income ratio is 0.48, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.58, showing some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	1.16B	1.22B	1.24B	1.09B	952.17M
Gross Profit	472.65M	667.85M	661.94M	664.45M	612.44M	536.67M
EBITDA	109.64M	155.69M	155.45M	155.59M	164.88M	96.41M
Net Income	-64.74M	14.70M	27.83M	39.07M	55.93M	5.67M
Balance Sheet
Total Assets	1.30B	1.44B	1.49B	1.56B	1.50B	1.41B
Cash, Cash Equivalents and Short-Term Investments	111.77M	133.23M	165.21M	171.49M	188.22M	185.87M
Total Debt	407.66M	455.28M	529.25M	516.74M	501.79M	519.77M
Total Liabilities	713.83M	715.26M	799.84M	855.32M	829.64M	825.19M
Stockholders Equity	584.67M	720.99M	693.10M	705.07M	668.25M	589.31M
Cash Flow
Free Cash Flow	46.73M	82.07M	58.20M	22.11M	61.74M	94.12M
Operating Cash Flow	95.65M	136.99M	118.91M	76.61M	108.39M	133.54M
Investing Cash Flow	-48.20M	-63.45M	-59.76M	-44.48M	-45.16M	-39.09M
Financing Cash Flow	-82.10M	-114.12M	-57.94M	-54.52M	-71.09M	-80.97M

NORMA Group SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.46
• 50DMA: Positive
• 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:NOEJ, the sentiment is Positive. The current price of 14.46 is above the 20-day moving average (MA) of 13.88, above the 50-day MA of 13.80, and above the 200-day MA of 13.90, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 60.21 is Neutral, neither overbought nor oversold. The STOCH value of 48.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:NOEJ.

NORMA Group SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STM	68 Neutral	€490.54M	21.39	3.68%	5.57%	-0.75%	-67.10%
SFQ	66 Neutral	€679.10M	12.16	11.63%	5.70%	-12.01%	-28.10%
SHF	65 Neutral	€564.39M	21.24	19.08%	―	20.52%	84.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NOEJ	52 Neutral	€458.18M	-7.12	-8.94%	2.77%	-11.59%	-375.79%
ZIL2	46 Neutral	€274.98M	-2.35	-16.55%	3.51%	-6.21%	-995.53%