Secunet Security Networks (YSN) AI Stock Analysis

• Market Cap: €1.25B
• Dividend Yield: 1.46%
• Average Volume (3M): 2.87K
• Price to Earnings (P/E): 39.1
• Beta (1Y): 1.59
• Revenue Growth: 12.26%
• EPS Growth: 15.55%
• Country: DE
• Employees: 1,059
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.77
• Shares Outstanding: 6,500,000
• 10 Day Avg. Volume: 2,794
• 30 Day Avg. Volume: 2,869
• 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: €231.00
• Price Target Upside: 23.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: €210.00 ▲(12.18% Upside)

Secunet Security Networks' strong financial performance is the most significant factor, supported by consistent revenue and profit growth, operational efficiency, and a healthy balance sheet. However, technical indicators suggest a neutral to slightly bearish short-term outlook, and the valuation appears stretched with a high P/E ratio. The absence of earnings call data and corporate events does not impact the score.

Secunet Security Networks Business Overview & Revenue Model

Company Description

secunet Security Networks Aktiengesellschaft operates as a cybersecurity company in Germany and internationally. The company offers safety audits and analyses; secunet biomiddle, a middleware for biometric systems and electronic ID (eID) documents; secunet bocoa, a border control application for stationary and mobile use; secunet CryptoServices; secunet easygate, an automated border control system; and secunet easykiosk, an automated system that collects, processes, and forwards relevant personal data. It also provides secunet easytower for biometric acquisition at stationary border control; secunet edge, an edge computing solution; eID public key infrastructure for automotive applications; secunet GlobalTester, an open-source-based test tool for smart cards and document readers; secunet Golden Reader Tool, an acknowledged standard solution for the readout of electronic identity documents; hardware security modules; secunet konnektor for healthcare telematics; protect4use for secure authentication to protect digital identity; IT security outsourcing; secunet safe surfer to run external and unknown content in a surfing environment isolated from the internal network; and secunet Session Border Controller that filters audio and video protocols. In addition, the company offers SINA Communicator H, a multi-crypto phone; SINA Workflow, a digital management of classified information; business continuity management system; data centre connectors for hospitals and large medical facilities; data protection management; information security management; anomaly detection services; secure web solutions; security analyses and penetration tests; security consulting; SecuStack, a secure and turnkey cloud infrastructure solution that ensures the protection of business-critical applications, sensitive data, and confidential information; and Stashcat, a secure messaging for police, public authorities, and companies. The company was founded in 1997 and is headquartered in Essen, Germany.

How the Company Makes Money

Secunet Security Networks generates revenue through multiple streams, including the sale of cybersecurity software and hardware products, consulting services, and ongoing maintenance and support contracts. The company also benefits from government contracts, providing specialized security solutions for public sector clients. Key partnerships with technology firms and integration with existing IT infrastructures enhance their offerings, allowing them to secure more contracts and expand their client base. Additionally, recurring revenue from subscription-based services and training programs contributes significantly to their earnings.

Secunet Security Networks Financial Statement Overview

Summary

Secunet Security Networks demonstrates strong financial performance with consistent revenue growth and robust profit margins. The balance sheet is solid with low leverage, and cash flow management is effective, supporting growth and investment strategies. Minor fluctuations in profitability and cash flows are noted but do not significantly impact the overall financial health.

Income Statement

Secunet Security Networks has demonstrated consistent revenue growth, with a notable increase from €285.6M in 2020 to €406.4M in 2024. The Gross Profit Margin is robust, averaging around 23.9% over recent years. Net Profit Margin, while slightly fluctuating, remains healthy at approximately 6.9% in 2024. There is steady EBIT and EBITDA performance, indicating strong operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.16 in 2024, highlighting financial prudence. The equity ratio is strong at about 41.9%, indicating a stable financial structure. The Return on Equity is decent, though slightly declining, reflecting consistent shareholder value creation amidst growing equity base.

Cash Flow

Cash flow management appears effective as operating cash flow remains strong, growing from €51.9M in 2023 to €60.9M in 2024. Free Cash Flow has also shown growth, leading to an improved Free Cash Flow to Net Income Ratio. However, fluctuating investing and financing cash flows may suggest strategic investments or restructuring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	302.77M	406.38M	393.68M	347.22M	337.62M	285.59M
Gross Profit	104.86M	97.33M	87.37M	90.15M	101.61M	80.82M
EBITDA	68.18M	60.49M	60.24M	62.10M	73.82M	59.61M
Net Income	31.95M	27.95M	29.15M	31.31M	43.10M	35.11M
Balance Sheet
Total Assets	342.45M	359.65M	328.64M	315.42M	274.02M	239.78M
Cash, Cash Equivalents and Short-Term Investments	25.35M	57.68M	41.27M	21.48M	119.60M	101.78M
Total Debt	21.84M	24.17M	19.09M	19.13M	17.41M	18.52M
Total Liabilities	204.49M	208.82M	190.79M	187.59M	144.20M	137.01M
Stockholders Equity	137.88M	150.75M	137.75M	127.59M	129.56M	102.39M
Cash Flow
Free Cash Flow	37.50M	46.85M	43.07M	-9.51M	46.98M	47.17M
Operating Cash Flow	48.37M	60.98M	51.88M	-3.96M	53.76M	56.38M
Investing Cash Flow	-19.44M	-22.74M	-8.75M	―	-15.71M	-5.47M
Financing Cash Flow	-24.68M	-21.82M	-23.33M	-39.53M	―	-13.75M

Secunet Security Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 187.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:YSN, the sentiment is Negative. The current price of 187.2 is below the 20-day moving average (MA) of 194.34, below the 50-day MA of 202.40, and above the 200-day MA of 182.14, indicating a neutral trend. The MACD of -1.94 indicates Positive momentum. The RSI at 37.45 is Neutral, neither overbought nor oversold. The STOCH value of 9.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:YSN.

Secunet Security Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AOF	69 Neutral	€1.72B	38.10	56.76%	1.97%	10.61%	12.46%
ADN1	67 Neutral	€639.77M	52.18	6.92%	0.77%	12.68%	―
TMV	67 Neutral	€1.36B	10.77	140.73%	―	9.74%	26.28%
YSN	66 Neutral	€1.25B	39.08	24.42%	1.46%	12.26%	15.55%
PSAN	51 Neutral	€409.10M	2,416.67	0.18%	―	7.04%	―
NB2	42 Neutral	€1.11B	―	-15.17%	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%