Paragon (PGN) AI Stock Analysis

• Market Cap: €13.58M
• Dividend Yield: N/A
• Average Volume (3M): 2.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• 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: 1,692
• 30 Day Avg. Volume: 2,943
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: -16.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: €2.50 ▼(-16.67% Downside)

Paragon's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and high financial leverage. While technical analysis shows some positive momentum, the negative P/E ratio and lack of dividend yield highlight valuation concerns. The absence of earnings call and corporate events data limits further insights.

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 faces significant financial challenges, with declining revenues, negative profitability, and high leverage. The negative equity and declining cash flow growth highlight financial distress. While the company generates positive operating cash flow, it struggles with profitability and growth, posing risks to its financial stability and future performance.

Income Statement

Paragon's income statement shows declining revenue and profitability challenges. The TTM data indicates a negative net profit margin of -3.93%, with a gross profit margin of 55.11%. The EBIT and EBITDA margins are also low at 2.85% and 14.27%, respectively. Revenue has decreased from the previous year, indicating negative growth, which is a concern for future profitability.

Balance Sheet

The balance sheet reveals significant financial instability, with negative stockholders' equity of -9.68 million, indicating that liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt of 67.52 million suggests substantial leverage. The equity ratio is negative, reflecting financial distress and potential solvency issues.

Cash Flow

Paragon's cash flow statement shows some positive aspects, with a free cash flow of 5.11 million in the TTM period. The operating cash flow to net income ratio is positive, suggesting that the company generates cash despite net losses. However, the free cash flow growth rate is negative compared to the previous year, indicating challenges in sustaining cash generation.

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: 3.00
• 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 3 is above the 20-day moving average (MA) of 2.57, above the 50-day MA of 2.38, and above the 200-day MA of 2.20, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 65.29 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 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
PWO	67 Neutral	86.25M	7.71	7.73%	6.34%	-4.25%	-22.32%
SF3	55 Neutral	26.96M	-44.95	-1.33%	1.20%	4.55%	45.49%
PGN	49 Neutral	€13.58M	―		―	-22.97%	20.72%
IS7	49 Neutral	9.21M	-2.24	-12.96%	―	-18.91%	-171.87%
HGEA	49 Neutral	19.24M	-0.98	-40.03%	―	-10.38%	-19.93%
MSAG	46 Neutral	43.66M	-5.91	-6.44%	―	-40.37%	-406.54%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%