TeamViewer AG (TMV) AI Stock Analysis

• Market Cap: €916.68M
• Dividend Yield: N/A
• Average Volume (3M): 869.10K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.75
• Revenue Growth: 11.14%
• EPS Growth: 0.92%
• Country: DE
• Employees: 1,891
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.34
• Shares Outstanding: 163,500,000
• 10 Day Avg. Volume: 620,922
• 30 Day Avg. Volume: 869,104
• PEG Ratio: 0.75
• Price to Book (P/B): 15.21
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 6.27
• 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: €10.09
• Price Target Upside: 75.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €6.00 ▲(4.53% Upside)

TeamViewer AG's overall score reflects solid financial performance and attractive valuation, offset by technical weakness and operational challenges highlighted in the earnings call. The company's high leverage and declining cash flow growth are key risks, while its low P/E ratio suggests potential for future gains.

Positive Factors

Enterprise ARR Growth

The strong growth in Enterprise ARR indicates a robust demand for TeamViewer's solutions in the enterprise segment, which can drive long-term revenue expansion and market position enhancement.

Strong Profitability

A high EBITDA margin demonstrates efficient operations and cost management, providing a buffer against economic fluctuations and supporting sustainable profitability.

Innovative Product Developments

The development of innovative products like DEX Essentials and AI features positions TeamViewer to capture emerging market opportunities and maintain competitive advantage.

Negative Factors

High Leverage

Significant leverage can constrain financial flexibility and increase risk, potentially impacting long-term financial stability and investment capacity.

Declining Free Cash Flow Growth

Decreasing free cash flow growth may limit the company's ability to invest in growth initiatives and manage debt, affecting future liquidity and operational resilience.

1E Stand-Alone Business Decline

The decline in the 1E business signals potential challenges in customer retention and market competition, which could hinder overall growth and strategic objectives.

TeamViewer AG Business Overview & Revenue Model

Company Description

TeamViewer AG, together with its subsidiaries, develops and distributes remote connectivity solutions worldwide. The company offers TeamViewer, a remote access, remote control, and remote support solution that works with every desktop and mobile platform; TeamViewer Tensor, an enterprise remote connectivity cloud platform enabling organizations to deploy a large-scale IT management framework to access, support, and control any device or machine from anywhere at anytime; TeamViewer Assist AR, a remote support solution with augmented reality; and TeamViewer IoT, which enables to instantly access, control, and manage connected products from anywhere. It also provides TeamViewer Frontline, an augmented reality productivity solution platform; TeamViewer Engage, a next-gen digital customer engagement platform for online sales, digital customer service, and video consultations; TeamViewer Remote Management that manages, monitors, tracks, patches, and protects computers, devices, and software from a single platform; TeamViewer Servicecamp, a solution for service desk management and remote connectivity; TeamViewer Remote Access, a secure and stable remote access to remote PCs, smartphones, servers, payment terminals and IoT devices; and TeamViewer Meeting, a meeting function that offers video conferencing and VoIP calls, instant chat, screen sharing across devices and platforms. The company was formerly known as Regit Beteiligungs-GmbH and changed its name to TeamViewer AG in September 2019. TeamViewer AG was founded in 2005 and is headquartered in Göppingen, Germany.

How the Company Makes Money

TeamViewer generates revenue primarily through subscription-based licensing for its software products. The company offers tiered pricing plans that cater to different user needs, including individual users, small businesses, and large enterprises. Key revenue streams include direct sales of licenses, recurring revenue from subscriptions, and additional income from service contracts and add-on features. TeamViewer also benefits from strategic partnerships with hardware manufacturers and software providers, enhancing its distribution channels and expanding its user base. The company invests in marketing and customer support to retain existing clients and attract new ones, contributing to its overall earnings.

TeamViewer AG Financial Statement Overview

Summary

TeamViewer AG shows strong profitability with high margins and efficient cash generation. However, the high debt-to-equity ratio and slowing revenue growth present financial stability risks.

Income Statement

TeamViewer AG has demonstrated consistent revenue growth over the years, with a TTM revenue growth rate of 3.13%. The company maintains strong profitability with a gross profit margin of 88.09% and a net profit margin of 17.81% in the TTM period. EBIT and EBITDA margins are also robust at 30.95% and 37.28%, respectively. However, the growth rate has slowed compared to previous years, indicating potential challenges in sustaining high growth levels.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 11.49 in the TTM period, indicating significant leverage and potential financial risk. Return on equity is relatively low at 1.37%, suggesting limited efficiency in generating returns from equity. The equity ratio is also low, reflecting a high reliance on debt financing. These factors highlight potential vulnerabilities in financial stability.

Cash Flow

TeamViewer AG's cash flow performance is stable, with a free cash flow growth rate of 2.02% in the TTM period. The operating cash flow to net income ratio is 0.24, and the free cash flow to net income ratio is 0.96, indicating efficient cash generation relative to net income. However, the operating cash flow coverage ratio has decreased, suggesting potential challenges in covering operating expenses with cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	730.84M	671.42M	626.69M	565.87M	501.10M	455.61M
Gross Profit	638.59M	590.59M	544.95M	484.58M	430.15M	391.51M
EBITDA	254.76M	248.12M	219.68M	191.14M	168.34M	205.14M
Net Income	115.59M	123.08M	114.02M	67.60M	50.05M	103.03M
Balance Sheet
Total Assets	1.67B	1.07B	1.11B	1.17B	1.55B	1.06B
Cash, Cash Equivalents and Short-Term Investments	27.87M	55.27M	82.25M	168.03M	550.53M	87.99M
Total Debt	997.49M	444.63M	529.42M	632.64M	877.47M	522.25M
Total Liabilities	1.54B	969.86M	1.03B	1.06B	1.23B	822.71M
Stockholders Equity	131.17M	100.48M	83.66M	115.28M	320.09M	240.71M
Cash Flow
Free Cash Flow	210.76M	243.81M	224.26M	195.50M	178.74M	198.37M
Operating Cash Flow	217.10M	249.18M	229.87M	204.34M	193.97M	224.54M
Investing Cash Flow	-691.21M	-12.82M	-29.56M	-10.82M	-38.92M	110.25M
Financing Cash Flow	478.75M	-254.39M	-287.39M	-609.80M	301.10M	-95.77M

TeamViewer AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.74
• 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:TMV, the sentiment is Negative. The current price of 5.74 is below the 20-day moving average (MA) of 5.90, below the 50-day MA of 5.77, and below the 200-day MA of 8.67, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 44.74 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:TMV.

TeamViewer AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AOF	72 Outperform	€1.67B	36.37	74.27%	1.88%	10.61%	12.46%
MUM	69 Neutral	€717.05M	23.69	34.89%	4.15%	-33.50%	-6.00%
TMV	67 Neutral	€916.68M	7.80	113.84%	―	11.14%	0.92%
SAP	66 Neutral	€234.09B	33.84	16.86%	1.13%	9.70%	161.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NEM	59 Neutral	€9.71B	47.52	24.84%	0.59%	25.17%	19.52%
PSAN	58 Neutral	€705.34M	-30.32	-29.16%	―	9.19%	-37.73%