TeamViewer AG (TMV) AI Stock Analysis

• Market Cap: €1.34B
• Dividend Yield: N/A
• Average Volume (3M): 869.10K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.67
• Revenue Growth: 11.14%
• EPS Growth: 0.92%
• Country: DE
• Employees: 1,891
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.18
• Shares Outstanding: 170,000,000
• 10 Day Avg. Volume: 620,922
• 30 Day Avg. Volume: 869,104
• 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: €13.48
• Price Target Upside: 103.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 62 Neutral
• Price Target: €7.00 ▲(5.42% Upside)

TeamViewer AG's strong valuation and profitability are offset by technical weaknesses and financial risks due to high leverage. The stock's oversold condition may offer a rebound opportunity, but caution is advised due to revised guidance and operational challenges.

Positive Factors

Enterprise Growth

The strong growth in Enterprise ARR indicates robust demand and successful expansion in key markets, supporting long-term revenue stability.

Profitability

High EBITDA margins reflect efficient operations and a strong ability to convert revenue into profit, which is crucial for sustaining business health.

Product Innovation

Innovative product developments, including AI features, enhance competitive positioning and open new revenue streams, supporting future growth.

Negative Factors

High Leverage

High leverage indicates financial risk, potentially limiting the company's ability to invest in growth opportunities and weather economic downturns.

SMB ARR Flattening

Flat SMB ARR growth suggests challenges in this segment, which could impact overall revenue growth if not addressed strategically.

Revised Guidance

The downward revision in guidance reflects operational challenges and FX headwinds, indicating potential difficulties in achieving growth targets.

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 exhibits solid financial health with strong revenue and profit growth, efficient cash flow management, and a significant reduction in debt, enhancing financial flexibility. While the company's profitability and cash generation are commendable, attention to equity levels could further bolster financial stability.

Income Statement

TeamViewer AG shows a strong income statement performance with consistent revenue growth over the years, evident in the revenue growth rate of approximately 7.1% from 2023 to 2024. The company maintains robust profitability with a gross profit margin around 88% and a net profit margin improving to 18.3% in 2024. The EBIT and EBITDA margins are also healthy, indicating efficient operational management. Overall, the income statement reflects stability and growth, with a positive trajectory for revenue and profit margins.

Balance Sheet

The balance sheet of TeamViewer AG indicates moderate financial leverage with a debt-to-equity ratio of 0 in 2024 due to the elimination of total debt, showcasing a significant reduction from previous years. The equity ratio is relatively low at around 9.4%, highlighting a potential risk due to lower equity levels. However, the return on equity is impressive at 122.5%, suggesting effective use of shareholder funds for generating profits. The balance sheet reflects a stable financial position with reduced leverage but highlights areas for improvement in equity levels.

Cash Flow

TeamViewer AG demonstrates strong cash flow performance with a positive free cash flow growth rate of approximately 8.7% from 2023 to 2024. The operating cash flow to net income ratio is robust, emphasizing efficient cash generation relative to earnings. The free cash flow to net income ratio remains strong, indicating the company’s ability to convert net income into cash effectively. The cash flow statement reflects healthy cash management and strong free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	710.03M	671.42M	626.69M	565.87M	501.10M	455.61M
Gross Profit	625.50M	590.59M	544.95M	484.58M	430.15M	391.51M
EBITDA	264.71M	248.12M	219.68M	196.21M	155.48M	234.37M
Net Income	126.44M	123.08M	114.02M	67.60M	50.05M	103.03M
Balance Sheet
Total Assets	1.71B	1.07B	1.11B	1.17B	1.55B	1.06B
Cash, Cash Equivalents and Short-Term Investments	51.05M	55.27M	82.25M	168.03M	550.53M	87.99M
Total Debt	1.03B	444.63M	529.42M	632.64M	877.47M	522.25M
Total Liabilities	1.62B	969.86M	1.03B	1.06B	1.23B	822.71M
Stockholders Equity	89.84M	100.48M	83.66M	115.28M	320.09M	240.71M
Cash Flow
Free Cash Flow	230.80M	243.81M	224.26M	195.50M	178.74M	198.37M
Operating Cash Flow	240.45M	249.18M	229.87M	204.34M	193.97M	224.54M
Investing Cash Flow	-692.53M	-12.82M	-29.56M	-10.82M	-38.92M	110.25M
Financing Cash Flow	451.77M	-254.39M	-287.39M	-609.80M	301.10M	-95.77M

TeamViewer AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 6.64 is below the 20-day moving average (MA) of 8.47, below the 50-day MA of 8.79, and below the 200-day MA of 10.47, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 21.94 is Positive, neither overbought nor oversold. The STOCH value of 44.92 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	75 Outperform	€1.65B	36.02	74.27%	2.00%	10.61%	12.46%
SAP	73 Outperform	€269.55B	41.18	15.83%	0.99%	10.29%	159.53%
MUM	63 Neutral	€762.50M	25.35	35.14%	4.33%	-16.41%	-1.83%
TMV	62 Neutral	€1.34B	10.60	113.84%	―	11.14%	0.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NEM	59 Neutral	€12.16B	63.55	23.55%	0.53%	25.33%	6.58%
PSAN	53 Neutral	€705.34M	4,166.67	-0.10%	―	7.04%	―

TeamViewer AG Corporate Events

TeamViewer AG’s Earnings Call Highlights Strategic Gains

TeamViewer AG’s recent earnings call painted a picture of strong strategic progress and solid financial performance, particularly in the enterprise segment and EMEA region. Despite these positive developments, the company faces challenges in the U.S. market and a softer performance from 1E. However, there is cautious optimism for growth acceleration in the latter half of the year, buoyed by new product launches.