Paragon (PGN) AI Stock Analysis

• Market Cap: €11.68M
• Dividend Yield: N/A
• Average Volume (3M): 3.08K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• Revenue Growth: -22.97%
• EPS Growth: 20.72%
• Country: DE
• Employees: 685
• Sector: Services
• Sector Strength: N/A
• Industry: Auto - Parts
• EPS (TTM): -0.13
• Shares Outstanding: 4,526,266
• 10 Day Avg. Volume: 4,740
• 30 Day Avg. Volume: 3,085
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €2.50
• Price Target Upside: -6.02% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: €2.50 ▼(-6.02% Downside)

The overall stock score of 49 reflects significant financial challenges, including negative profitability and high leverage, which are major concerns. Technical analysis provides some positive signals with the stock trading above key moving averages, but caution is advised due to overbought indicators. Valuation remains weak due to negative earnings and lack of dividend yield.

Paragon Business Overview & Revenue Model

Company Description

paragon GmbH & Co. KGaA develops, produces, and distributes automotive electronics, body kinematics, and e-mobility solutions for the automotive industry in Germany, European Union, and internationally. It operates through two segments, Electronics and Mechanics. The Electronics segment develops and sells sensors, microphones, and instruments primarily for the automotive industry. The Mechanics segment develops and markets electromechanical components for the automotive and mechanical manufacturing industries. The company was founded in 1988 and is headquartered in Delbrück, Germany.

How the Company Makes Money

Paragon generates revenue through multiple streams, primarily by offering subscription-based software services, which provide ongoing income as clients pay for access to their platforms. Additionally, the company earns money from consulting services that help organizations implement and optimize its software solutions. Key partnerships with industry leaders in technology and service sectors further enhance its revenue potential by expanding market access and enabling joint ventures. Furthermore, the company may also derive income from licensing its intellectual property and technology to third parties, creating additional avenues for revenue generation.

Paragon Financial Statement Overview

Summary

Paragon is experiencing financial difficulties characterized by declining revenue and persistent losses. The company shows some operational efficiency with a healthy gross profit margin, but faces significant leverage and risk due to its negative equity position. While cash flows are positive, the overall financial health is concerning with limited growth prospects.

Income Statement

Paragon's TTM financials show a declining revenue trend with a decrease from the previous year. The gross profit margin is relatively healthy at 55.1%, indicating efficient production despite a negative net profit margin of -3.9%. The company is struggling with profitability as reflected in negative net income, though the EBITDA margin of 14.3% suggests some operational efficiency.

Balance Sheet

The company has a challenging financial structure with negative stockholders' equity, indicating liabilities exceed assets, which is a significant risk. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt level relative to assets suggests elevated leverage.

Cash Flow

Paragon's cash flow statement shows positive operating cash flow and free cash flow, indicating some capability to generate cash despite a negative operating cash flow to net income ratio. The free cash flow to net income ratio is positive, reflecting cash generation capability, albeit with declining free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	127.57M	139.03M	173.71M	164.96M	151.24M	150.49M
Gross Profit	70.30M	71.76M	84.57M	75.84M	86.04M	67.48M
EBITDA	18.20M	17.82M	17.62M	9.91M	12.65M	6.37M
Net Income	-5.02M	-6.11M	-3.81M	-8.68M	-5.50M	-44.67M
Balance Sheet
Total Assets	97.86M	98.32M	108.52M	172.54M	159.67M	200.50M
Cash, Cash Equivalents and Short-Term Investments	4.59M	5.38M	3.21M	18.11M	1.46M	5.66M
Total Debt	67.52M	69.35M	72.50M	120.13M	115.88M	135.62M
Total Liabilities	107.33M	108.27M	112.60M	171.88M	156.37M	187.26M
Stockholders Equity	-9.47M	-9.95M	-4.08M	662.00K	3.30M	7.44M
Cash Flow
Free Cash Flow	5.11M	5.20M	-13.76M	8.26M	-2.73M	5.94M
Operating Cash Flow	16.07M	15.96M	-6.16M	15.98M	14.81M	18.75M
Investing Cash Flow	-10.60M	-10.43M	38.14M	-3.88M	1.68M	-12.62M
Financing Cash Flow	-5.09M	-4.35M	-46.88M	4.54M	-20.53M	-9.93M

Paragon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:PGN, the sentiment is Positive. The current price of 2.66 is above the 20-day moving average (MA) of 2.29, above the 50-day MA of 2.22, and above the 200-day MA of 2.14, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 67.42 is Neutral, neither overbought nor oversold. The STOCH value of 53.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:PGN.

Paragon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	CHF6.98B	15.08	16.26%	2.58%	0.50%	7.42%
PGN	49 Neutral	€11.68M	―		―	-22.97%	20.72%
0J9S	―	€8.49M	―	-21.88%	―	―	―
0N2B	―	€45.15M	21.26	-5.76%	―	―	―
0NHL	―	€90.63M	7.99	7.01%	―	―	―
SF3	55 Neutral	€26.83M	―	-1.36%	0.99%	4.55%	45.49%
HGEA	49 Neutral	€19.86M	―	-35.15%	―	-10.38%	-19.93%