q.beyond AG (QBY) AI Stock Analysis

• Market Cap: €100.91M
• Dividend Yield: N/A
• Average Volume (3M): 59.12K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 0.43
• Revenue Growth: -3.43%
• EPS Growth: 78.06%
• Country: DE
• Employees: 1,094
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 124,579,490
• 10 Day Avg. Volume: 76,828
• 30 Day Avg. Volume: 59,124
• PEG Ratio: 0.26
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 13.04
• 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: €1.30
• Price Target Upside: 88.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: €0.74 ▲(7.25% Upside)

The score is held back primarily by weak financial performance (ongoing profitability and cash-flow challenges) and a negative P/E. Offsetting this somewhat are improving recent business trends and guidance confirmation from the earnings call, while technicals suggest only a modest near-term stabilization within a still-weak longer-term trend.

Positive Factors

Return to Profitability

A return to positive net income indicates the company can generate operating profitability after prior losses, reducing the risk of recurring equity dilution and providing a foundation to reinvest in growth initiatives. Sustained profit recovery would improve cash generation and strategic flexibility over months.

Improving Order Pipeline

A material uplift in order entry and an 8% YTD increase point to a strengthening sales pipeline and higher future revenue visibility. For a services firm, sustained higher order intake supports utilization, recurring managed-services revenue and margin leverage over the coming quarters.

Low Financial Leverage

Relatively low leverage provides balance-sheet flexibility to fund working capital, invest in technology or weather demand cycles without heavy refinancing risk. This reduces insolvency risk and supports strategic investments in digital services over the medium term.

Negative Factors

Weak Profitability Trends

Persistent negative net margins and declining revenue highlight structural profitability challenges. Without sustainable margin expansion or revenue growth, the company risks continued losses that impair reinvestment, limit hiring/upskilling, and constrain long-term competitiveness in digital services.

Poor Cash Conversion

Negative free cash flow growth and weak conversion from income to cash signal fragile liquidity generation. Over months this can restrict funding for projects, slow R&D or AI investments, and force reliance on external financing, raising costs and limiting strategic optionality.

Weak SME Demand / Data Center Slowdown

End-market hesitancy among German SMEs and lower data center sales indicate structural demand weakness in core customer segments. If SME tender activity remains muted, revenue for hosting and migration services could stay depressed, pressuring utilization and long-term margin recovery.

q.beyond AG Business Overview & Revenue Model

Company Description

q.beyond AG (QBY) is a Germany-based digital transformation company that provides a range of IT services and solutions. Operating primarily in the sectors of cloud computing, IT infrastructure, and digital services, QBY focuses on helping businesses transition to modern technology environments. Its core offerings include application development, cloud migration, and managed services, enabling organizations to enhance their operational efficiency and innovate using advanced technologies.

How the Company Makes Money

q.beyond AG generates revenue through multiple streams, primarily by providing IT services and solutions to enterprises. Key revenue streams include consulting services, software development projects, managed services, and cloud solutions. The company often engages in long-term contracts with clients, providing a steady flow of income. Additionally, QBY benefits from partnerships with major technology providers, allowing it to offer integrated solutions that drive client value and satisfaction. These strategic alliances bolster its market position and contribute to the company's overall earnings.

q.beyond AG Financial Statement Overview

Summary

Overall fundamentals remain weak: negative net margins and negative ROE, slight revenue decline (-1.8% TTM), and poor cash generation (negative free cash flow growth). The balance sheet leverage is manageable (debt-to-equity 0.14), but profitability and cash conversion are the main drags.

Income Statement

q.beyond AG's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is 13.28%, which is a slight improvement from the previous year. However, the company is experiencing negative net profit margins, indicating ongoing losses. Revenue has declined by 1.8% in the TTM period, reflecting challenges in growth. The EBIT and EBITDA margins are also low, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.14 in the TTM period, indicating manageable leverage. However, the return on equity is negative, highlighting profitability issues. The equity ratio is relatively stable, suggesting a solid asset base, but the company needs to improve its profitability to enhance shareholder value.

Cash Flow

Cash flow analysis reveals significant challenges. The TTM free cash flow growth is negative, indicating cash flow issues. The operating cash flow to net income ratio is low, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, reflecting difficulties in generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.61M	192.59M	189.28M	173.02M	155.16M	143.42M
Gross Profit	22.21M	23.54M	16.81M	14.67M	19.12M	11.62M
EBITDA	12.61M	9.06M	3.97M	-10.79M	31.38M	-1.99M
Net Income	-1.81M	-4.95M	-17.48M	-33.30M	9.71M	-19.90M
Balance Sheet
Total Assets	138.59M	152.89M	154.34M	161.06M	200.30M	190.86M
Cash, Cash Equivalents and Short-Term Investments	41.31M	39.09M	37.64M	36.39M	56.70M	44.92M
Total Debt	11.77M	8.71M	8.64M	8.25M	14.19M	17.87M
Total Liabilities	43.89M	58.28M	54.95M	45.41M	52.93M	54.31M
Stockholders Equity	92.34M	92.56M	97.85M	115.14M	147.07M	136.56M
Cash Flow
Free Cash Flow	328.00K	6.96M	3.90M	-4.78M	-14.94M	-10.55M
Operating Cash Flow	3.32M	10.53M	6.47M	-1.26M	-7.66M	-4.97M
Investing Cash Flow	7.08M	-3.41M	-1.70M	-13.99M	24.70M	-7.09M
Financing Cash Flow	-7.75M	-5.67M	-3.52M	-5.07M	-5.26M	-9.05M

q.beyond AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:QBY, the sentiment is Positive. The current price of 0.69 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.72, and below the 200-day MA of 0.84, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 65.27 is Neutral, neither overbought nor oversold. The STOCH value of 71.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:QBY.

q.beyond AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBS	75 Outperform	€57.29M	16.50	10.88%	1.77%	2.84%	21.48%
A1OS	63 Neutral	€199.78M	18.11	10.26%	3.99%	-1.50%	-37.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AEIN	59 Neutral	€257.64M	-1,087.38	0.37%	2.51%	-26.34%	-101.49%
QBY	50 Neutral	€100.91M	40.30	-1.93%	―	-3.43%	78.06%
KSC	49 Neutral	€22.88M	-1.24	-31.92%	―	-15.56%	-100.13%