Novem Group SA (NVM) AI Stock Analysis

• Market Cap: €179.44M
• Dividend Yield: 8.87%
• Average Volume (3M): 8.94K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: DE
• Employees: 4,887
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Auto - Parts
• EPS (TTM): 0.05
• Shares Outstanding: 43,030,304
• 10 Day Avg. Volume: 3,174
• 30 Day Avg. Volume: 8,943
• PEG Ratio: 0.61
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.25
• 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: €5.00
• Price Target Upside: 19.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ―

Novem Group SA exhibits a stable financial performance with notable strengths in cash flow generation and an improving equity position. However, high debt levels and revenue decline are concerns. The technical analysis indicates a bearish trend, while valuation metrics suggest moderate pricing. The absence of a dividend yield may deter income-focused investors.

Novem Group SA Business Overview & Revenue Model

Company Description

Novem Group SA (NVM) is a leading global provider specializing in the design, development, and manufacturing of high-quality decorative interior trim components for the automotive industry. The company operates within the automotive sector, supplying premium interior solutions to a wide range of major automotive manufacturers. Novem Group's core products include wood, aluminum, and carbon trim elements that enhance the aesthetic appeal and functionality of vehicle interiors.

How the Company Makes Money

Novem Group SA generates revenue primarily through the sale of its decorative interior trim components to automotive manufacturers. The company's key revenue streams include direct sales contracts with major global automotive brands, which rely on Novem's expertise in crafting premium interior solutions. Partnerships with leading car manufacturers play a significant role in their earnings, as these collaborations often involve long-term contracts and recurring orders. Additionally, Novem Group benefits from its investments in innovation and technology, which allow it to offer customized and advanced interior solutions that meet the evolving demands of the automotive market.

Novem Group SA Financial Statement Overview

Summary

Novem Group SA shows a solid financial position with stable profitability and cash flow generation. Despite some revenue weaknesses, the company has improved its equity standing, reducing potential risks. High debt levels remain a concern but are being effectively managed, showcasing a balanced approach to financial operations.

Income Statement

Novem Group SA demonstrates strong gross profit margins and consistent EBIT and EBITDA margins in the TTM period. However, there is a noticeable decline in revenue compared to the previous annual period, which affects overall growth potential. The net profit margin remains positive but shows a significant drop compared to the previous year.

Balance Sheet

The balance sheet reveals a stable equity ratio and a reasonable debt-to-equity ratio improvement over the years. The company's equity position has strengthened, moving from negative to positive equity, which is a positive sign. However, the overall debt level remains high, which could pose risks to financial stability.

Cash Flow

Operating cash flow remains robust with a positive free cash flow, indicative of good cash generation ability. However, there is a decline in free cash flow growth rate in the TTM period, reflecting reduced cash efficiency compared to the previous year.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	553.18M	635.51M	700.30M	614.63M	602.72M	652.19M
Gross Profit	132.53M	97.24M	338.12M	316.10M	305.96M	148.03M
EBITDA	79.39M	99.69M	113.05M	105.98M	110.82M	117.02M
Net Income	12.21M	34.78M	49.98M	43.97M	9.73M	3.96M
Balance Sheet
Total Assets	602.10M	616.21M	638.01M	594.04M	629.95M	668.04M
Cash, Cash Equivalents and Short-Term Investments	141.50M	141.51M	165.47M	116.97M	175.30M	196.17M
Total Debt	250.00M	257.21M	257.31M	283.95M	895.89M	953.70M
Total Liabilities	512.30M	526.32M	530.75M	526.39M	1.14B	1.18B
Stockholders Equity	89.90M	89.89M	107.26M	67.66M	-505.09M	-511.17M
Cash Flow
Free Cash Flow	11.81M	36.66M	80.39M	61.95M	86.48M	29.04M
Operating Cash Flow	28.22M	52.75M	98.33M	80.54M	105.51M	52.17M
Investing Cash Flow	-15.10M	-10.02M	-13.78M	-15.49M	-15.77M	-23.11M
Financing Cash Flow	-7.44M	-60.86M	-35.55M	-124.89M	-110.70M	71.27M

Novem Group SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.17
• 50DMA: Positive
• 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 Neutral. The current price of 4.17 is below the 20-day moving average (MA) of 4.25, below the 50-day MA of 4.18, and below the 200-day MA of 4.98, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 48.85 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, 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
SAX	74 Outperform	€2.78B	20.06	30.25%	4.62%	5.67%	46.04%
NVM	61 Neutral	€179.44M	15.98	12.22%	8.87%	―	―
Sector *	61 Neutral	€6.22B	13.37	0.40%	4.09%	4.45%	-35.15%
WAF	59 Neutral	€1.20B	30.18	2.02%	0.50%	-2.61%	-72.43%
KCO	51 Neutral	€623.44M	―	-10.39%	2.75%	-0.34%	19.96%
SGL	49 Neutral	€435.26M	6.85	-16.90%	―	-8.34%	-357.87%