Softing (SYT) AI Stock Analysis

• Market Cap: €38.16M
• Dividend Yield: 3.35%
• Average Volume (3M): 3.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -9.92%
• EPS Growth: 74.47%
• Country: DE
• Employees: 429
• Sector: Technology
• Sector Strength: 81
• Industry: Information Technology Services
• EPS (TTM): -0.06
• Shares Outstanding: 9,925,881
• 10 Day Avg. Volume: 1,324
• 30 Day Avg. Volume: 3,602
• 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: €3.50
• Price Target Upside: -4.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: €3.50 ▼(-4.89% Downside)

Softing's overall stock score reflects its financial challenges, particularly in profitability and cash flow generation. Technical analysis provides a slightly positive outlook, but valuation concerns persist due to a negative P/E ratio. The dividend yield offers some investor appeal, but sustainability is questionable without improved financial performance.

Softing Business Overview & Revenue Model

Company Description

Softing AG develops software, hardware, and system solutions worldwide. The company operates through three segments: Industrial, Automotive, and IT Networks. It offers industrial communications solutions and products for the manufacturing and process industry. The company also provides products and services for integrated communication functions in automation systems and devices, such as PROFIBUS, PROFINET, EthernetIP, EtherCAT, Powerlink, Modbus, CAN, CANopen, DeviceNet, FOUNDATION Fieldbus, and HART; interface cards; integration modules; chip solutions and communications software for implementing bus links; gateways for linking fieldbuses; and groupwide planning and administration systems. It offers tools for configuring networks; toolkits to integrate configuration functions; tools and devices for signal and protocol analysis of industrial communication networks; and OPC servers, OPC middleware, and development tools, as well as develops and imports geared and other motors for various applications. The company also provides vehicle adapters and data bus interfaces comprising interfaces, various PC connections, programming interfaces, and customized adaptations; and on-site consulting and engineering services, as well as special solutions for development/testing, production, and service. It offers diagnostic solutions, and customized and proprietary analytic tools; test automation software interfaces, editing and run time systems, and customized test stations, as well as solutions for the flash programming of control units; and devices for simulating electronic control units and rest bus systems. The company also provides customer-specific software and hardware developments for data communication/diagnosis/test systems; on-site customer support, as well as measurement technology and automation systems; and testing, qualifying, and certifying services for cabling in IT systems. Softing AG was founded in 1979 and is headquartered in Haar, Germany.

How the Company Makes Money

Softing generates revenue through several key streams. The primary source is the sale of software and hardware products tailored for industrial automation and automotive communication. The company offers licensing models for its software products, providing ongoing revenue through maintenance and support services. Additionally, Softing engages in consulting and development services, helping clients integrate their solutions into existing systems, which contributes to its earnings. Strategic partnerships with major players in the automotive and manufacturing sectors enhance its market reach and drive sales, while recurring revenue from maintenance contracts ensures a steady income stream.

Softing Financial Statement Overview

Summary

Softing's financial performance is challenged by negative net profit margins and EBIT margins, indicating profitability issues. The balance sheet shows moderate leverage with a slight improvement in the debt-to-equity ratio, but the return on equity remains negative. Cash flow analysis reveals volatility, with a decline in free cash flow growth, highlighting the need for improved operational efficiency.

Income Statement

Softing's income statement reveals challenges with profitability, as evidenced by negative net profit margins and EBIT margins over the periods. The TTM data shows a slight decrease in revenue compared to the previous year, indicating a contraction in sales. Gross profit margins have been relatively stable, but the company struggles to convert revenue into net income, as seen in the consistent net losses.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio that has improved slightly in the TTM period. However, the return on equity remains negative, reflecting ongoing profitability issues. The equity ratio indicates that a reasonable portion of assets is financed by equity, which is a positive sign of financial stability.

Cash Flow

Cash flow analysis indicates volatility, with a significant decline in free cash flow growth in the TTM period. The operating cash flow to net income ratio suggests that the company is generating cash from operations, but the free cash flow to net income ratio highlights challenges in translating this into free cash flow, partly due to ongoing net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.67M	95.06M	112.59M	98.31M	84.69M	77.60M
Gross Profit	24.16M	26.89M	30.77M	6.87M	20.06M	18.70M
EBITDA	7.92M	9.22M	13.89M	8.74M	10.13M	6.60M
Net Income	-2.29M	-1.82M	-5.83M	-1.40M	-68.00K	-4.58M
Balance Sheet
Total Assets	104.63M	114.89M	103.06M	111.31M	103.36M	105.19M
Cash, Cash Equivalents and Short-Term Investments	6.86M	9.52M	5.20M	6.80M	9.72M	10.25M
Total Debt	14.99M	24.07M	20.38M	19.75M	14.87M	19.63M
Total Liabilities	54.40M	58.03M	48.76M	49.48M	39.81M	42.18M
Stockholders Equity	49.56M	55.95M	53.61M	60.99M	62.93M	62.58M
Cash Flow
Free Cash Flow	269.00K	2.26M	8.96M	2.56M	6.22M	-533.00K
Operating Cash Flow	3.77M	7.01M	9.10M	3.60M	11.05M	4.91M
Investing Cash Flow	-3.30M	-4.76M	-7.93M	-6.07M	-5.91M	-8.47M
Financing Cash Flow	-421.00K	2.08M	-3.06M	-489.00K	-5.85M	-1.11M

Softing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.68
• 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:SYT, the sentiment is Positive. The current price of 3.68 is above the 20-day moving average (MA) of 3.58, above the 50-day MA of 3.39, and above the 200-day MA of 3.33, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 53.23 is Neutral, neither overbought nor oversold. The STOCH value of 45.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SYT.

Softing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.56B	9.00	-10.49%	1.86%	8.45%	-8.32%
SYT	53 Neutral	€38.16M	―	-4.49%	3.35%	-9.92%	74.47%
0M2T	―	€30.45M	―	-31.92%	―	―	―
0CHZ	―	€111.62M	―	-3.48%	―	―	―
0NIB	―	€5.49M	57.06	1.39%	―	―	―
OBS	66 Neutral	€55.40M	15.82	10.88%	1.71%	2.84%	21.48%
T3T1	―	€19.42M	13.95	21.47%	―	―	―