Realtech (RTC) AI Stock Analysis

• Market Cap: €5.14M
• Dividend Yield: N/A
• Average Volume (3M): 2.51K
• Price to Earnings (P/E): 56.2
• Beta (1Y): 0.89
• Revenue Growth: -0.43%
• EPS Growth: -82.51%
• Country: DE
• Employees: 69
• Sector: General
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 5,385,652
• 10 Day Avg. Volume: 1,444
• 30 Day Avg. Volume: 2,511
• PEG Ratio: -1.16
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 9.25
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: €0.97 ▲(0.41% Upside)

The score is held back primarily by expensive valuation (high P/E) and only mixed operating performance (recent revenue decline and margin volatility), despite a strong balance sheet, improving cash generation, and an overall upward price trend that appears somewhat overextended.

Positive Factors

Balance Sheet Strength

Realtech's very low leverage and high equity ratio provide durable financial flexibility. Substantial cash and short-term investments allow the company to fund R&D, absorb cyclical shocks, pursue partnerships, and invest in product development without depending on external debt.

Recurring Revenue Model

A subscription-based model with tiered plans and consulting upsells generates predictable, sticky cash flows and higher customer lifetime value. Strategic partnerships expand distribution, improving retention and enabling steady revenue visibility for multi-year product investment and scaling.

Cash Generation

Improved free cash flow and strong operating cash conversion demonstrate efficient conversion of earnings into cash. This self-funding capacity supports capital allocation to product development, working capital, or selective M&A, reducing reliance on external financing over the medium term.

Negative Factors

Revenue Decline

A recent revenue decline undermines the scalability of the subscription base and signals potential weakness in sales or retention. Persistent top-line contraction reduces operating leverage, pressures margins and forces higher investment in sales and marketing to restore sustainable growth.

Margin Pressure and Volatility

Declining gross margins and volatile EBIT indicate rising cost pressures or pricing competition and unstable operating efficiency. Eroding unit economics make long-term profitability less predictable and constrain the company's ability to reinvest while maintaining margin resilience.

Limited Scale / Execution Risk

With only 69 employees Realtech faces scale limitations versus larger incumbents. Smaller sales, engineering and support capacity can slow feature delivery, limit enterprise sales coverage and concentrate dependence on key clients, increasing execution risk as it tries to expand market share.

Realtech Business Overview & Revenue Model

Company Description

RealTech AG provides information technology (IT) service management and SAP automation solutions worldwide. The company offers service management products, such as IT service management solutions, including incident, problem, change, service portfolio and catalogue, and service asset and configuration management solutions; configuration management database and business service management solutions; and smart service management solutions. It also provides SAP automation solutions, such as smartchange transport, synchronization, and interface management solutions. In addition, the company offers artificial intelligence solutions in IT service management; and managed and assessment services for SAP systems, as well as operates a hospitality service platform. RealTech AG was founded in 1994 and is headquartered in Leimen, Germany.

How the Company Makes Money

Realtech generates revenue through a subscription-based model for its software services, where clients pay monthly or annual fees for access to its platforms. Key revenue streams include tiered subscription plans based on the number of properties managed and additional features utilized. The company also earns money through consulting services, helping real estate firms implement and customize its software to meet their specific needs. Significant partnerships with real estate agencies and property management firms enhance its market reach and contribute to earnings by providing bundled services and joint marketing initiatives.

Realtech Financial Statement Overview

Summary

Financials suggest a turnaround with improving profitability and strong cash conversion, supported by a very solid balance sheet (high equity ratio, very low leverage). However, revenue declined recently and operating profitability has been volatile, keeping the score in the mid-range.

Income Statement

Realtech's income statement reflects a mixed performance. The gross profit margin has been declining over the years, reflecting increasing cost pressures. The recent year saw a decline in total revenue by 3.63%, indicating challenges in revenue growth. The company achieved a positive net profit margin of 1.65% in 2024, recovering from losses in previous years. However, EBIT margin trends show volatility, suggesting fluctuating operating efficiencies. Overall, the income statement shows signs of improvement but remains unstable.

Balance Sheet

The balance sheet indicates a strong financial position with a high equity ratio of 79.75%, reflecting financial stability. The company maintains low debt levels, with a debt-to-equity ratio of 0.04, implying low financial risk. Return on equity improved to 2.54% in 2024, showing better utilization of equity. The company has a robust liquidity position with substantial cash and short-term investments, enhancing its ability to meet short-term obligations. The balance sheet demonstrates solid financial health with low leverage.

Cash Flow

Realtech's cash flow analysis reveals a positive trend with free cash flow improving significantly in 2024. The company generated a positive operating cash flow to net income ratio of 4.30, indicating efficient conversion of income into cash. Despite fluctuations in investing cash flows, the free cash flow to net income ratio of 3.78 indicates strong cash generation capability. However, the cash flow from operations showed considerable volatility over the years, pointing to potential instability in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.62M	10.18M	10.57M	10.20M	9.85M	9.27M
Gross Profit	2.27M	1.91M	2.53M	5.11M	5.36M	5.13M
EBITDA	294.47K	430.89K	623.73K	-3.46M	1.31M	-422.42K
Net Income	91.30K	168.00K	240.56K	-3.89M	770.26K	-932.17K
Balance Sheet
Total Assets	10.24M	8.29M	8.51M	8.60M	12.33M	12.02M
Cash, Cash Equivalents and Short-Term Investments	8.34M	6.05M	5.84M	4.85M	6.11M	5.20M
Total Debt	337.98K	236.37K	230.00K	118.64K	403.91K	1.14M
Total Liabilities	3.66M	1.68M	2.09M	2.44M	2.33M	2.82M
Stockholders Equity	6.58M	6.61M	6.43M	6.16M	10.00M	9.20M
Cash Flow
Free Cash Flow	326.56K	634.31K	53.16K	501.32K	1.21M	-335.30K
Operating Cash Flow	390.12K	721.51K	187.94K	526.62K	1.23M	-308.20K
Investing Cash Flow	-2.95M	-1.55M	-1.55M	-2.53M	-16.18K	-27.10K
Financing Cash Flow	-99.59K	-74.77K	-132.04K	-265.50K	-315.02K	-359.99K

Realtech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.97
• 50DMA: Negative
• 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:RTC, the sentiment is Negative. The current price of 0.97 is below the 20-day moving average (MA) of 0.99, above the 50-day MA of 0.97, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.79 is Neutral, neither overbought nor oversold. The STOCH value of 40.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:RTC.

Realtech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBS	75 Outperform	€57.29M	16.36	10.88%	1.77%	2.84%	21.48%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
RTC	54 Neutral	€5.14M	56.18	1.39%	―	-0.43%	-82.51%
QBY	50 Neutral	€100.91M	40.30	-1.93%	―	-3.43%	78.06%
SYT	46 Neutral	€27.34M	-12.98	-4.09%	―	-3.84%	82.87%