Novem Group SA (NVM) AI Stock Analysis

• Market Cap: €122.21M
• Dividend Yield: N/A
• Average Volume (3M): 13.14K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: -9.08%
• EPS Growth: -34.48%
• Country: DE
• Employees: 4,887
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.02
• 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: 17.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.47
• Revenue Forecast (FY): €511.05M

• Rating: 55 Neutral
• Price Target: €3.00 ▲(0.33% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

Overall score is constrained by a leveraged balance sheet and weakening revenue/profitability, reinforced by bearish technical momentum. These risks are partially offset by strong cash generation (supporting deleveraging) and a low P/E valuation.

Positive Factors

Cash generation

Strong operating and free cash flow in the trailing twelve months provides meaningful capacity to reduce leverage and fund program tooling, capex and working capital. Durable cash conversion supports continued deleveraging, lowers refinancing risk, and underpins investment through vehicle cycles.

Premium OEM niche

Focus on high-end surfacing and trim solutions (real wood, aluminum, carbon, high-gloss finishes) yields higher value content per vehicle. Structural OEM program sourcing and engineering/tooling work produce sticky, long-term program revenues and strengthen competitive positioning with premium automakers.

Improved equity & ROE

Recovery from prior negative equity and positive returns on equity indicate improving solvency and profitable capital use. Stronger equity cushions downside risk, enhances lender confidence, and supports reinvestment, even as ROE gains may be partly leverage-amplified.

Negative Factors

High leverage

Elevated debt and an aggressive capital structure increase fixed-charge and refinancing risk for a cyclical supplier. High leverage constrains strategic flexibility, raises vulnerability to production slowdowns, and can amplify losses during downturns, pressuring long-term stability.

Weakening revenue momentum

A decline in sales and negative revenue growth signal weaker program volumes or lost content. Sustained top-line contraction would impair fixed-cost absorption, reduce cash available for deleveraging and investment, and make recovery dependent on winning new OEM program awards.

Margin volatility

Year-to-year margin variability and recent thin net margins undermine earnings predictability. Persistent margin volatility increases risk to cash flow and debt servicing capacity, complicates planning for tooling/capex, and heightens exposure during automotive demand cycles.

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

Mixed fundamentals: strong cash flow (Cash Flow Score 71) supports deleveraging, but performance is held back by high leverage (Balance Sheet Score 42) and weakening revenue/net profitability trends (Income Statement Score 56).

Income Statement

Revenue momentum has weakened, with sales down in the latest TTM (Trailing-Twelve-Months) period and also negative in recent annual reports after a stronger 2023. Profitability is mixed: gross margin is solid in TTM but has been volatile year-to-year, and net margin is thin in the most recent periods versus healthier levels in 2022–2024. EBIT and EBITDA margins remain mid-single to mid-teens, but the main concern is the downshift in net income versus prior peaks and the lack of consistent top-line growth.

Balance Sheet

Leverage is the key constraint: total debt remains high relative to equity, with debt-to-equity elevated in the latest annual and still high in TTM (Trailing-Twelve-Months). Equity has improved versus the 2021 negative-equity position, but the capital structure still looks aggressive for a cyclical auto-parts business. Returns on equity are positive and relatively strong in recent periods, yet that strength is partly amplified by leverage, leaving the balance sheet more exposed if earnings soften.

Cash Flow

Cash generation is a bright spot. Operating cash flow and free cash flow are healthy in TTM (Trailing-Twelve-Months), and free cash flow has rebounded sharply versus the prior year, supporting de-levering capacity. Free cash flow is sizable relative to net income, suggesting earnings quality is generally supported by cash conversion. The main watch-out is variability across years (including periods of weaker free cash flow growth), which could matter given the company’s leverage.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	510.34M	541.46M	635.51M	700.30M	614.63M	602.72M
Gross Profit	207.06M	271.45M	97.24M	338.12M	316.10M	305.96M
EBITDA	74.63M	77.08M	99.69M	113.05M	100.84M	109.70M
Net Income	19.67M	11.13M	34.78M	49.98M	43.97M	9.73M
Balance Sheet
Total Assets	542.30M	568.07M	616.21M	638.01M	594.04M	629.95M
Cash, Cash Equivalents and Short-Term Investments	169.90M	150.10M	141.51M	165.47M	116.97M	175.30M
Total Debt	250.70M	298.34M	257.21M	257.31M	283.95M	895.89M
Total Liabilities	447.70M	474.13M	526.32M	530.75M	526.39M	1.14B
Stockholders Equity	94.50M	93.94M	89.89M	107.26M	67.66M	-505.09M
Cash Flow
Free Cash Flow	59.15M	23.83M	36.66M	80.39M	61.95M	86.48M
Operating Cash Flow	71.44M	41.35M	52.75M	98.33M	80.54M	105.51M
Investing Cash Flow	-11.26M	-12.85M	-10.02M	-13.78M	-15.49M	-15.77M
Financing Cash Flow	-14.79M	-18.70M	-60.86M	-35.55M	-124.89M	-110.70M

Novem Group SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.99
• 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:NVM, the sentiment is Negative. The current price of 2.99 is above the 20-day moving average (MA) of 2.86, above the 50-day MA of 2.96, and below the 200-day MA of 3.38, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 35.84 is Neutral, neither overbought nor oversold. The STOCH value of 21.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€75.63M	6.91	7.07%	5.91%	-4.01%	-10.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NVM	55 Neutral	€122.21M	-31.41	20.90%	―	-9.08%	-34.48%
BDT	52 Neutral	€151.79M	-16.95	-15.50%	1.38%	-17.63%	30.27%
ZIL2	46 Neutral	€280.05M	-16.43	-18.51%	3.51%	-6.21%	-995.53%
GMM	46 Neutral	€99.83M	3.44	5.45%	―	-10.08%	―
ED4	42 Neutral	€97.00M	-2.03	-50.83%	10.96%	-13.53%	-394.79%