NORMA Group SE (NOEJ) AI Stock Analysis

• Market Cap: €516.17M
• Dividend Yield: 2.47%
• Average Volume (3M): 63.74K
• Price to Earnings (P/E): 209.6
• Beta (1Y): 1.33
• Revenue Growth: -7.04%
• EPS Growth: -91.36%
• Country: DE
• Employees: 6,003
• Sector: Industrials
• Sector Strength: 91
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): N/A
• Shares Outstanding: 31,862,400
• 10 Day Avg. Volume: 56,806
• 30 Day Avg. Volume: 63,744
• PEG Ratio: -2.55
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.40
• 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: €20.25
• Price Target Upside: 25.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: €16.00 ▼(-1.23%Downside)

NORMA Group SE demonstrates a strong financial foundation with positive cash flows and manageable debt levels, but faces challenges with declining profitability margins and inconsistent revenue growth. The technical indicators show a bullish trend, but overbought conditions could lead to a price correction. The stock appears overvalued with a high P/E ratio, though the dividend yield offers some benefits.

NORMA Group SE Business Overview & Revenue Model

Company Description

NORMA Group SE, together with its subsidiaries, manufactures and sells engineered joining technology solutions in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company provides quick connectors, hose clamps, retaining clamps, and pipe couplings. The company sells its products to distributors, original equipment manufacturer aftermarket customers, technical wholesalers, and hardware stores under the ABA, Breeze, Clamp-All, CONNECTORS, FISH, Gemi, Kimplas, NDS, NORMA, Raindrip, R.G.RAY, Serflex, TORCA, and TRUSTLENE brand names through its distribution network, sales representatives, retailers, and importers. The company also provides water management, emobility thermal management, and commercial and passenger vehicles solutions. NORMA Group SE was founded in 1896 and is headquartered in Maintal, Germany.

How the Company Makes Money

NORMA Group SE generates revenue through the sale of its engineered joining technology products. Its business model is centered around providing a diverse range of high-quality, reliable components that are critical for the functionality of industrial and automotive systems. The company's key revenue streams include direct sales to original equipment manufacturers (OEMs) and through its extensive distribution network serving aftermarket customers. NORMA Group benefits from strategic partnerships with major automotive and industrial companies, which help to secure long-term supply agreements and consistent demand for its products. Additionally, the company's focus on innovation and customization allows it to offer tailored solutions that meet specific client needs, further enhancing its revenue potential.

NORMA Group SE Financial Statement Overview

Summary

NORMA Group SE displays financial stability with a solid balance sheet and efficient cash flow management. However, challenges in sustaining revenue and profit growth are evident, with a decreased net profit margin and reduced revenue. Operational efficiency remains a strength, but profitability and revenue growth need improvement.

Income Statement

NORMA Group SE's income statement shows mixed performance. The gross profit margin is strong at 57.8%, indicating efficient production and sales processes. However, the net profit margin has decreased to 1.3%, reflecting declining profitability. Revenue has decreased by 5.5% compared to the previous year, highlighting challenges in maintaining growth. Despite this, the EBIT and EBITDA margins remain moderate at 5.0% and 13.5%, respectively, showcasing operational efficiency.

Balance Sheet

The company's balance sheet shows a balanced structure between debt and equity. With a debt-to-equity ratio of 0.63, NORMA Group SE maintains a moderate level of leverage, which indicates manageable financial risk. The equity ratio is robust at 50.2%, suggesting a solid capital base. Return on equity has decreased to 2.0%, indicating reduced shareholder returns but still maintaining a stable financial position.

Cash Flow

The cash flow statement highlights a positive trend in free cash flow growth at 41.0%, reflecting improved cash generation capabilities. The operating cash flow to net income ratio is healthy at 9.3, indicating strong cash earnings relative to reported profits. However, the free cash flow to net income ratio at 5.6 shows some inefficiencies in converting profits into cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.16B	1.22B	1.24B	1.09B	952.17M
Gross Profit	423.10M	667.85M	661.94M	664.45M	612.44M	536.67M
EBITDA	141.81M	155.69M	157.37M	157.41M	164.88M	98.30M
Net Income	2.31M	14.70M	27.83M	39.07M	55.93M	5.67M
Balance Sheet
Total Assets	1.42B	1.44B	1.49B	1.56B	1.50B	1.41B
Cash, Cash Equivalents and Short-Term Investments	114.66M	133.23M	165.21M	171.49M	188.22M	185.87M
Total Debt	436.19M	455.28M	509.99M	516.74M	501.79M	519.77M
Total Liabilities	717.78M	715.26M	799.84M	855.32M	829.64M	825.19M
Stockholders Equity	697.86M	720.99M	693.10M	705.07M	668.25M	589.31M
Cash Flow
Free Cash Flow	74.65M	82.07M	58.20M	22.11M	61.74M	94.12M
Operating Cash Flow	129.28M	136.99M	118.91M	76.61M	108.39M	133.54M
Investing Cash Flow	-53.98M	-63.45M	-59.76M	-44.48M	-45.16M	-39.09M
Financing Cash Flow	-120.56M	-114.12M	-57.94M	-54.52M	-71.09M	-80.97M

NORMA Group SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 16.2 is above the 20-day moving average (MA) of 13.91, above the 50-day MA of 12.87, and above the 200-day MA of 13.36, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 82.17 is Negative, neither overbought nor oversold. The STOCH value of 94.10 is Negative, 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
Sector *	67 Neutral	$2.55B	12.66	9.94%	4.17%	-2.21%	31.02%
NOEJ	61 Neutral	€516.17M	209.57	0.34%	2.47%	-7.04%	-91.36%
0MG5		€291.46M	―	-19.89%	3.26%	―	―
0O4N		€818.91M	11.13	12.40%	4.71%	―	―
0P5F		€41.84M	―		―	―	―
0NJB		€529.48M	23.08	16.29%	―	―	―
0QUL		€689.13M	10.32	9.96%	4.12%	―	―