Softing (SYT) AI Stock Analysis

• Market Cap: €33.05M
• Dividend Yield: 3.87%
• Average Volume (3M): 778.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -13.96%
• EPS Growth: 54.79%
• Country: DE
• Employees: 429
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 9,925,881
• 10 Day Avg. Volume: 867
• 30 Day Avg. Volume: 778
• PEG Ratio: 0.18
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.87
• 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: 7.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: €3.50 ▲(7.36%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 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 AG generates revenue primarily through the sale of its hardware and software solutions, which cater to industrial automation, automotive, and IT network sectors. Key revenue streams include sales of industrial data communication solutions, such as interface cards, gateways, and software tools for industrial automation. Additionally, the company earns from providing diagnostic systems and tools for automotive electronics. Another significant source of income is from IT network monitoring solutions that help businesses ensure efficient and reliable network operations. The company also benefits from strategic partnerships and collaborations with other technology firms, which enhance its product offerings and market reach.

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: 3.26
• 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:SYT, the sentiment is Negative. The current price of 3.26 is below the 20-day moving average (MA) of 3.47, below the 50-day MA of 3.37, and below the 200-day MA of 3.47, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 73.81 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
SYT	52 Neutral	€33.05M	―	-5.74%	3.87%	-13.96%	54.79%
Sector *	50 Neutral	C$2.94B	2.11	-63.12%	2.50%	11.24%	-12.42%
0M2T	―	€34.16M	―	-31.92%	―	―	―
0CHZ	―	€117.10M	―	-4.32%	―	―	―
0NIB	―	€5.60M	32.05	2.58%	―	―	―
OBS	68 Neutral	€61.08M	15.27	12.59%	1.55%	-0.01%	47.45%
T3T1	―	€19.23M	13.82	21.47%	―	―	―