Softing (SYT) AI Stock Analysis

• Market Cap: €30.49M
• Dividend Yield: 4.19%
• Average Volume (3M): 2.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -13.96%
• EPS Growth: 54.79%
• Country: DE
• Employees: 429
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 9,925,881
• 10 Day Avg. Volume: 3,018
• 30 Day Avg. Volume: 2,114
• 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: €3.50
• Price Target Upside: 12.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: €3.50 ▲(12.90% Upside)

Softing's overall score is primarily impacted by its financial performance challenges, with declining revenues and net losses being significant concerns. The technical analysis indicates a neutral to bearish trend, while valuation metrics reflect a lack of profitability but a decent dividend yield. These factors result in a cautious outlook on the stock.

Softing Business Overview & Revenue Model

Company Description

Softing (SYT) is a technology company operating primarily in the industrial automation and automotive electronics sectors. The company specializes in developing software and hardware solutions that enable seamless communication and data exchange in complex industrial and automotive environments. Softing's core products include diagnostic tools, communication interfaces, and connectivity solutions that enhance operational efficiency and connectivity in various industrial and automotive applications.

How the Company Makes Money

Softing generates revenue through the sale of its software and hardware solutions to industrial and automotive clients. The company's key revenue streams include licensing fees for its software products, sales of communication interfaces and diagnostic tools, and service contracts for technical support and maintenance. Softing also engages in strategic partnerships with major industrial and automotive companies, which help to drive sales and expand its market presence. Additionally, the company may earn revenue from custom solutions and consulting services tailored to specific client needs.

Softing Financial Statement Overview

Summary

Softing is experiencing financial difficulties with declining revenues and persistent net losses. However, it has managed to maintain operational efficiency as evidenced by positive EBITDA margins and effective cash flow management.

Income Statement

Softing has faced declining revenues over recent years with a significant drop from 2023 to TTM (Trailing-Twelve-Months). The company shows a negative net profit margin in the TTM, indicating continued challenges in achieving profitability. The gross profit margin has also declined, reflecting pressures on cost management. However, the EBITDA margin remains positive, suggesting some operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased, signaling higher leverage and potential risk. The equity ratio is relatively stable, indicating a balanced asset structure. However, the return on equity is negative due to ongoing net losses, suggesting that shareholder value is not being effectively increased.

Cash Flow

Operating cash flow remains positive, though it has decreased in the TTM period, indicating pressure on cash generation from core operations. The free cash flow has also reduced but remains positive, showing some capability to cover capital expenditures. The operating cash flow to net income ratio is strong due to the negative net income, highlighting cash generation from operations despite accounting losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	95.06M	112.59M	98.31M	84.69M	77.60M
Gross Profit	26.89M	30.77M	6.87M	20.06M	18.70M
EBITDA	9.22M	13.89M	8.74M	10.13M	6.60M
Net Income	-1.82M	-5.83M	-1.40M	-68.00K	-4.58M
Balance Sheet
Total Assets	114.89M	103.06M	111.31M	103.36M	105.19M
Cash, Cash Equivalents and Short-Term Investments	9.52M	5.20M	6.80M	9.72M	10.25M
Total Debt	24.07M	20.38M	19.75M	14.87M	19.63M
Total Liabilities	58.03M	48.76M	49.48M	39.81M	42.18M
Stockholders Equity	55.95M	53.61M	60.99M	62.93M	62.58M
Cash Flow
Free Cash Flow	2.26M	8.96M	2.56M	6.22M	-533.00K
Operating Cash Flow	7.01M	9.10M	3.60M	11.05M	4.91M
Investing Cash Flow	-4.76M	-7.93M	-6.07M	-5.91M	-8.47M
Financing Cash Flow	2.08M	-3.06M	-489.00K	-5.85M	-1.11M

Softing Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.10
• 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:SYT, the sentiment is Negative. The current price of 3.1 is below the 20-day moving average (MA) of 3.26, below the 50-day MA of 3.38, and below the 200-day MA of 3.40, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 50.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SYT.

Softing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	69 Neutral	¥233.80B	14.88	7.64%	2.58%	9.19%	5.56%
OBS	64 Neutral	€56.82M	14.09	12.59%	1.80%	-0.01%	47.45%
RTC	60 Neutral	€5.39M	32.05	2.58%	―	-3.63%	-30.20%
KSC	55 Neutral	€31.03M	―	-31.92%	―	-15.56%	-100.13%
QBY	55 Neutral	€112.12M	―	-4.32%	―	1.09%	69.89%
SYT	52 Neutral	€30.49M	―	-5.74%	4.19%	-13.96%	54.79%