Softing (SYT) AI Stock Analysis

• Market Cap: €35.80M
• Dividend Yield: 3.69%
• Average Volume (3M): 1.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -13.96%
• EPS Growth: 54.79%
• Country: DE
• Employees: 429
• Sector: Technology
• Sector Strength: 78
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 9,925,881
• 10 Day Avg. Volume: 1,606
• 30 Day Avg. Volume: 1,641
• PEG Ratio: -0.02
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.56
• 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

• Rating: 59 Neutral
• Price Target: €3.50 ▲(3.55%Upside)

The overall score reflects the company's financial challenges, with negative profitability and inconsistent revenue growth as significant concerns. However, positive cash flow management and a stable technical outlook provide some cushion. The negative P/E ratio is a valuation risk, partially mitigated by a decent dividend yield.

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

The financial performance of the company is mixed. The income statement shows negative profitability with a declining net profit margin and volatile revenue. The balance sheet indicates a manageable level of leverage but negative return on equity. Positive cash flow management provides some stability, highlighting effective cash generation despite net losses.

Income Statement

The income statement reveals a challenging situation. Gross profit margin has declined from 28.1% in 2019 to 28.3% in 2024, indicating a stable cost structure relative to revenue. However, the net profit margin is negative due to consecutive net losses, with the most recent margin at -1.9% in 2024. Revenue growth has been inconsistent, with a significant decline from 2023 to 2024, affecting profitability. The EBIT and EBITDA margins have also been volatile, reflecting operational inefficiencies. Overall, the company faces profitability challenges with a need for revenue stabilization.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio has increased slightly from 2019 to 2024, indicating rising leverage, but it remains at a manageable level of 0.43. Return on equity is negative due to the net losses incurred. The equity ratio shows a decrease, reflecting moderate financial stability with a current value of 48.7% in 2024. While the company maintains a reasonable level of equity, the increased debt load and negative earnings pose potential risks.

Cash Flow

Cash flow analysis highlights some positive aspects. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to net income. Free cash flow has been positive in recent years, showing improvement from 2019, with a notable increase in 2024. Free cash flow to net income ratio also suggests efficient cash management. Despite net losses, the company has managed to maintain positive cash flow, which is a positive indicator for liquidity.

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
	EBIT
497.00K	-2.72M	-2.07M	14.00K	-5.76M
	EBITDA
9.22M	13.89M	8.74M	10.13M	6.60M
	Net Income Common Stockholders
-1.82M	-5.83M	-1.40M	-68.00K	-4.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.52M	5.20M	6.80M	9.72M	10.25M
	Total Assets
114.89M	103.06M	111.31M	103.36M	105.19M
	Total Debt
24.07M	20.38M	19.75M	14.87M	19.63M
	Net Debt
14.80M	15.52M	12.95M	5.25M	9.46M
	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: 3.38
• 50DMA: Positive
• 100DMA: Positive
• 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 3.38 is above the 20-day moving average (MA) of 3.38, above the 50-day MA of 3.27, and below the 200-day MA of 3.56, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 65.83 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 *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
SYT	59 Neutral	€35.80M	―	-5.74%	3.69%	-13.96%	54.79%
0M2T		€34.16M	―	-31.92%	―	―	―
0CHZ		€107.39M	―	-4.32%	―	―	―
0NIB		€5.55M	32.05	2.58%	―	―	―
OBS	74 Outperform	€70.07M	17.05	12.59%	1.35%	-0.01%	47.45%
T3T1		€19.61M	14.09	21.47%	―	―	―