Secunet Security Networks (YSN) AI Stock Analysis

• Market Cap: €1.20B
• Dividend Yield: 1.47%
• Average Volume (3M): 4.19K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 1.58
• 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: 4,931
• 30 Day Avg. Volume: 4,192
• PEG Ratio: -6.39
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 16.08
• 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: €233.00
• Price Target Upside: 19.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.14
• Revenue Forecast (FY): €374.11M

• Rating: 61 Neutral
• Price Target: €179.00 ▼(-8.11% Downside)

Secunet Security Networks' strong financial performance is the primary driver of its stock score, supported by robust revenue and profit growth. However, bearish technical indicators and a high P/E ratio suggest caution, as the stock may be overvalued and currently experiencing downward momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A low debt-to-equity ratio reflects financial prudence, providing the company with flexibility to invest in growth opportunities and weather economic downturns.

Cash Flow Management

Strong cash flow management ensures the company can fund operations, invest in new projects, and return value to shareholders, enhancing long-term viability.

Negative Factors

Declining Return on Equity

A declining ROE, even if slight, may indicate challenges in efficiently utilizing equity to generate profits, potentially impacting future investor returns.

Fluctuating Profit Margins

Fluctuating profit margins could signal volatility in cost management or pricing power, affecting predictability of earnings and long-term profitability.

Investing and Financing Cash Flow Volatility

Volatility in cash flows related to investing and financing could indicate uncertainty in strategic direction, potentially impacting long-term growth and stability.

Secunet Security Networks Business Overview & Revenue Model

Company Description

Secunet Security Networks (YSN) is a leading provider of cybersecurity solutions, specializing in protecting sensitive data and critical infrastructure across various sectors, including government, finance, healthcare, and telecommunications. The company offers a comprehensive suite of products and services, including secure communication systems, data encryption, and threat detection technologies designed to safeguard organizations against emerging cyber threats.

How the Company Makes Money

Secunet Security Networks generates revenue through multiple streams, primarily by offering subscription-based cybersecurity services, licensing proprietary software solutions, and providing consulting and integration services for organizations looking to enhance their security posture. Key revenue streams include the sale of security software licenses, maintenance and support contracts, and professional services for system integration and risk assessment. Additionally, strategic partnerships with governmental bodies and private enterprises often lead to long-term contracts, contributing significantly to the company's earnings. The company also invests in research and development to innovate its offerings, allowing it to stay competitive and attract new clients in the rapidly evolving cybersecurity landscape.

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.

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	605.54M	406.38M	393.68M	347.22M	337.62M	285.59M
Gross Profit	141.04M	97.33M	87.37M	90.15M	101.61M	80.82M
EBITDA	77.54M	60.49M	60.24M	62.10M	73.82M	59.61M
Net Income	36.96M	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	26.43M	46.85M	43.07M	-9.51M	46.98M	47.17M
Operating Cash Flow	39.66M	60.98M	51.88M	-3.96M	53.76M	56.38M
Investing Cash Flow	-21.70M	-22.74M	-8.75M	―	-15.71M	-5.47M
Financing Cash Flow	-46.05M	-21.82M	-23.33M	-39.53M	―	-13.75M

Secunet Security Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 194.80
• 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:YSN, the sentiment is Positive. The current price of 194.8 is above the 20-day moving average (MA) of 182.14, above the 50-day MA of 189.28, and below the 200-day MA of 199.28, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 65.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	77 Outperform	€1.82B	39.70	74.27%	1.86%	10.61%	12.46%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
YSN	61 Neutral	€1.20B	37.67	24.42%	1.47%	12.26%	15.55%
TMV	61 Neutral	€884.50M	7.65	113.84%	―	11.14%	0.92%
PSAN	58 Neutral	€705.34M	-30.32	-29.16%	―	9.19%	-37.73%
ADN1	56 Neutral	€576.44M	42.47	6.82%	0.85%	12.37%	196.11%
NB2	42 Neutral	€961.67M	―	―	―	―	―