Novem Group SA (NVM) AI Stock Analysis

• Market Cap: €117.47M
• Dividend Yield: N/A
• Average Volume (3M): 13.14K
• Price to Earnings (P/E): 6.5
• Beta (1Y): -0.14
• Revenue Growth: -9.08%
• EPS Growth: -34.48%
• Country: DE
• Employees: 4,887
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.06
• Shares Outstanding: 43,030,304
• 10 Day Avg. Volume: 25,748
• 30 Day Avg. Volume: 13,140
• PEG Ratio: -0.24
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 7.62
• 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: €3.50
• Price Target Upside: 26.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: €3.00 ▲(8.30% Upside)

Novem Group SA's overall score reflects stable financial performance and attractive valuation, offset by technical weakness and high leverage. The stock's undervaluation and strong cash flow are positive, but bearish technical indicators and revenue challenges weigh on the score.

Positive Factors

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, supporting future investments and debt reduction, crucial for long-term stability.

Profitability Margins

Stable profitability margins indicate effective cost management and operational efficiency, supporting sustainable business operations.

Return on Equity

High return on equity suggests efficient management and strong ability to generate profits from shareholders' investments.

Negative Factors

Revenue Growth Challenges

Declining revenue growth reflects challenges in maintaining sales momentum, which can impact long-term market position and profitability.

High Leverage

Significant leverage poses risks in volatile markets, potentially straining financial flexibility and increasing vulnerability to economic shifts.

Earnings Decline

A significant decline in earnings per share growth indicates potential profitability issues, affecting investor confidence and future growth prospects.

Novem Group SA Business Overview & Revenue Model

Company Description

Novem Group S.A. develops and supplies trim elements and decorative function elements in car interiors for automotive industry in Luxembourg and internationally. The company's products portfolio includes instrument panels, impact-resistant trim parts in center console, door trims, and beltlines or dashboards. Novem Group S.A. was founded in 1947 and is based in Contern, Luxembourg.

How the Company Makes Money

Novem Group SA generates revenue primarily through the sale of its high-performance materials and components to automotive manufacturers and industrial clients. The company's revenue model is built on long-term contracts with major automotive brands, which provide a steady stream of income. Additionally, Novem benefits from partnerships with key industry players, allowing it to leverage shared resources and co-develop innovative products. The company also invests in research and development to create cutting-edge solutions that meet market demands, further driving its revenue growth. Factors such as increasing demand for lightweight materials and sustainable manufacturing practices contribute to Novem's earnings, as clients seek to improve efficiency and reduce their environmental footprint.

Novem Group SA Financial Statement Overview

Summary

Novem Group SA exhibits a mixed financial performance. Improvements in cost management and leverage are offset by challenges in revenue growth and operational efficiency. The stable cash flow position provides some stability, but overall financial structure suggests areas for improvement in profitability and financial resilience.

Income Statement

Novem Group SA has shown volatility in its revenue growth, with a decline over the past two years. Gross profit margin improved significantly from past years, suggesting better cost management. However, the net profit margin and EBIT margin have decreased, indicating challenges in maintaining operational efficiency. EBITDA margin also declined, reflecting potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved due to reduced debt levels, indicating better leverage management. However, the equity ratio remains low, suggesting potential financial instability. Return on equity has decreased, pointing to challenges in generating returns from shareholders' investments.

Cash Flow

The cash flow position of Novem Group SA is relatively stable. Operating cash flow remains positive, although it has decreased over the past year. Free cash flow to net income ratio indicates good cash conversion, despite a decline in free cash flow growth. The operating cash flow to net income ratio is strong, showing efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	516.44M	541.46M	635.51M	700.30M	614.63M	602.72M
Gross Profit	212.76M	271.45M	97.24M	338.12M	316.10M	305.96M
EBITDA	83.33M	77.08M	99.69M	113.05M	100.84M	109.70M
Net Income	18.27M	11.13M	34.78M	49.98M	43.97M	9.73M
Balance Sheet
Total Assets	546.89M	568.07M	616.21M	638.01M	594.04M	629.95M
Cash, Cash Equivalents and Short-Term Investments	153.41M	150.10M	141.51M	165.47M	116.97M	175.30M
Total Debt	250.54M	298.34M	257.21M	257.31M	283.95M	895.89M
Total Liabilities	450.97M	474.13M	526.32M	530.75M	526.39M	1.14B
Stockholders Equity	95.92M	93.94M	89.89M	107.26M	67.66M	-505.09M
Cash Flow
Free Cash Flow	38.44M	23.83M	36.66M	80.39M	61.95M	86.48M
Operating Cash Flow	50.58M	41.35M	52.75M	98.33M	80.54M	105.51M
Investing Cash Flow	-11.23M	-12.85M	-10.02M	-13.78M	-15.49M	-15.77M
Financing Cash Flow	-13.11M	-18.70M	-60.86M	-35.55M	-124.89M	-110.70M

Novem Group SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NVM, the sentiment is Neutral. The current price of 2.77 is above the 20-day moving average (MA) of 2.72, below the 50-day MA of 2.89, and below the 200-day MA of 3.73, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 82.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:NVM.

Novem Group SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWO	72 Outperform	€91.25M	7.91	7.17%	5.99%	-4.01%	-10.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NVM	59 Neutral	€117.47M	6.50	19.67%	―	-9.08%	-34.48%
ED4	46 Neutral	€132.50M	-2.02	-47.18%	10.38%	-13.53%	-394.79%
GMM	46 Neutral	€89.40M	4.80	9.81%	―	-10.08%	―
ZIL2	46 Neutral	€274.67M	-2.39	-16.55%	3.45%	-6.21%	-995.53%
BDT	45 Neutral	€184.33M	-3.40	-16.04%	1.38%	-17.63%	30.27%