tiprankstipranks
Novem Group SA (DE:NVM)
XETRA:NVM
Germany Market
Want to see DE:NVM full AI Analyst Report?

Novem Group SA (NVM) AI Stock Analysis

5 Followers

Top Page

DE:NVM

Novem Group SA

(XETRA:NVM)

Select Model
Select Model
Select Model
Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
€2.50
▼(-16.39% Downside)
Action:Reiterated
Date:06/29/26
The score is primarily held back by financial risk: profitability has compressed significantly versus prior peaks and leverage remains high, despite improved gross margins and generally positive cash generation. Technicals are neutral-to-weak with the stock below longer-term moving averages and slightly negative MACD. Valuation is a meaningful offset due to a very low P/E, but the lack of dividend data and recent free-cash-flow decline limit the upside in the overall score.
Positive Factors
Consistent cash generation
Consistent operating cash flow and historically positive free cash flow provide a durable internal funding source for working capital, tooling and reinvestment. This cash conversion mitigates cyclical revenue swings and supports servicing debt and sustaining production through program ramps over months.
Negative Factors
Elevated leverage
High debt relative to equity materially reduces financial flexibility in a cyclical auto-parts industry. Elevated leverage raises refinancing and covenant risk, limits ability to absorb lower demand or fund program-specific capex, and amplifies earnings volatility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Consistent operating cash flow and historically positive free cash flow provide a durable internal funding source for working capital, tooling and reinvestment. This cash conversion mitigates cyclical revenue swings and supports servicing debt and sustaining production through program ramps over months.
Read all positive factors

Novem Group SA (NVM) vs. iShares MSCI Germany ETF (EWG)

Novem Group SA Business Overview & Revenue Model

Company Description
Novem Group S.A. specializes in the design and delivery of decorative and functional interior trim components for the global automotive industry. Their extensive product range features items such as instrument panels, robust center console trim pi...
How the Company Makes Money
Novem Group SA makes money primarily by selling automotive interior decorative components that it designs and manufactures for customers in the automotive industry. Revenue is generated through (1) series production contracts tied to vehicle progr...

Novem Group SA Financial Statement Overview

Summary
Mixed fundamentals: revenue rebounded in 2026 and gross margin improved sharply in 2025–2026, but profitability remains materially weaker than 2022–2023 with net margins around ~2%. The balance sheet is the key risk with high leverage (~2.4x–3.2x debt-to-equity), limiting flexibility for a cyclical business. Cash flow is consistently positive, but free cash flow fell sharply in 2026, reducing confidence in near-term durability.
Income Statement
54
Neutral
Balance Sheet
42
Neutral
Cash Flow
58
Neutral
BreakdownMar 2025Mar 2024Mar 2023Mar 2023Mar 2022
Income Statement
Total Revenue510.93M541.46M635.51M700.30M614.63M
Gross Profit249.49M271.45M97.24M338.12M316.10M
EBITDA68.78M77.08M99.69M113.05M100.84M
Net Income11.25M11.13M34.78M49.98M43.97M
Balance Sheet
Total Assets554.09M568.07M616.21M638.01M594.04M
Cash, Cash Equivalents and Short-Term Investments175.22M150.10M141.51M165.47M116.97M
Total Debt287.28M298.34M257.21M257.31M283.95M
Total Liabilities459.37M474.13M526.32M530.75M526.39M
Stockholders Equity94.72M93.94M89.89M107.26M67.66M
Cash Flow
Free Cash Flow44.16M23.83M36.66M80.39M61.95M
Operating Cash Flow56.58M41.35M52.75M98.33M80.54M
Investing Cash Flow-8.43M-12.85M-10.02M-13.78M-15.49M
Financing Cash Flow-23.18M-18.70M-60.86M-35.55M-124.89M

Novem Group SA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.99
Price Trends
50DMA
2.63
Negative
100DMA
2.68
Negative
200DMA
2.85
Negative
Market Momentum
MACD
<0.01
Negative
RSI
49.03
Neutral
STOCH
25.00
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 2.62, above the 50-day MA of 2.63, and above the 200-day MA of 2.85, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.03 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
€74.37M11.264.00%5.91%-5.90%-39.62%
57
Neutral
€150.50M7.0611.78%-3.07%
53
Neutral
€112.74M10.0020.90%-5.66%0.19%
50
Neutral
€310.46M66.400.83%3.51%-6.42%
47
Neutral
€91.76M-1.58-16.41%1.38%-14.82%44.17%
41
Neutral
€114.75M-1.75-43.62%10.96%-12.94%-94.55%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:NVM
Novem Group SA
2.62
-1.46
-35.78%
DE:BDT
Bertrandt
9.08
-11.82
-56.56%
DE:ED4
EDAG Engineering
3.06
-2.72
-47.06%
DE:ZIL2
ElringKlinger
4.90
0.54
12.26%
DE:GMM
Grammer
10.10
3.80
60.32%
DE:PWO
Progress Werk Oberkirch
23.80
-4.53
-15.98%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 29, 2026