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): 0.80
• Revenue Growth: -0.43%
• EPS Growth: -82.51%
• Country: DE
• Employees: 69
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.00
• 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): -0.04
• Revenue Forecast (FY): €9.52M

• Rating: 49 Neutral
• Price Target: €1.00 ▲(4.17% Upside)

Realtech's overall stock score reflects a challenging environment. The company's strong balance sheet and improving cash flow are positive, but these are overshadowed by weak technical indicators and high valuation. The lack of revenue growth and bearish market momentum are significant concerns. Without earnings call insights or corporate events to provide additional context, the stock remains a risky investment.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and high equity ratios supports financial stability and reduces financial risk, providing a solid foundation for future growth.

Cash Flow Improvement

Improved cash flow indicates efficient income conversion into cash, enhancing the company's ability to reinvest in growth opportunities and maintain operations.

Return to Profitability

Returning to profitability demonstrates operational improvements and effective cost management, which are crucial for long-term sustainability and investor confidence.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates potential market saturation or competitive pressures, which could hinder the company's ability to scale and expand its market share.

Declining Gross Profit Margin

A declining gross profit margin suggests increasing cost pressures, which can erode profitability and limit the company's ability to invest in growth and innovation.

Volatile Cash Flow Management

Volatile cash flow management can lead to financial instability, affecting the company's ability to meet obligations and invest consistently in strategic initiatives.

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

Realtech's financial statements depict a company in a turnaround phase. The income statement shows signs of improvement with a return to profitability, but revenue growth remains a concern. The balance sheet is strong, characterized by low leverage and high equity ratios, supporting financial stability. Cash flow management shows a positive trend, though it exhibits some volatility. Overall, Realtech is on a path of recovery with solid fundamentals, but challenges in sustaining revenue growth and stabilizing cash flows need attention.

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: Neutral
• Last Price: 0.96
• 50DMA: Negative
• 100DMA: Negative
• 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:RTC, the sentiment is Neutral. The current price of 0.96 is above the 20-day moving average (MA) of 0.95, below the 50-day MA of 1.01, and below the 200-day MA of 1.06, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.30 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:RTC.

Realtech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBS	72 Outperform	€55.87M	15.95	10.88%	1.69%	2.84%	21.48%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RTC	49 Neutral	€5.14M	56.18	1.39%	―	-0.43%	-82.51%
SYT	46 Neutral	€28.33M	-13.45	-4.09%	―	-3.84%	82.87%
QBY	44 Neutral	€91.69M	-50.76	-1.93%	―	-3.43%	78.06%