Izertis SA (IZER) AI Stock Analysis

• Market Cap: €294.67M
• Dividend Yield: N/A
• Average Volume (3M): 15.65K
• Price to Earnings (P/E): 52.0
• Beta (1Y): 0.06
• Revenue Growth: 18.40%
• EPS Growth: 18.62%
• Country: ES
• Employees: 1,900
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.16
• Shares Outstanding: 28,889,440
• 10 Day Avg. Volume: 5,836
• 30 Day Avg. Volume: 15,646
• PEG Ratio: -2.97
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 47.95
• 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
• EPS Forecast (FY): 0.37
• Revenue Forecast (FY): €182.50M

• Rating: 66 Neutral
• Price Target: €11.50 ▲(12.75% Upside)

Izertis SA shows strong technical momentum, trading above key moving averages, but the high RSI indicates potential overbought conditions. Financial performance is mixed, with solid revenue growth but concerns over profitability and cash flow management. The high P/E ratio suggests overvaluation, which, combined with the lack of a dividend yield, impacts the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term expansion and stability.

Stable Gross Margins

Stable gross margins suggest effective cost management and pricing power, essential for maintaining profitability over time.

Diversified Revenue Streams

A diversified revenue model reduces dependency on any single stream, enhancing resilience against market fluctuations and supporting growth.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility and potentially impacting long-term financial health if not managed well.

Declining Free Cash Flow

A decline in free cash flow can constrain investment in growth opportunities and affect the company's ability to manage debt effectively.

Decreasing Net Profit Margins

Decreasing net profit margins indicate pressure on profitability, which could affect long-term earnings potential and shareholder returns.

Izertis SA Business Overview & Revenue Model

Company Description

izertis, S.A. provides technological consultancy services in Spain and internationally. The company offers digital strategy consultancy, data driven marketing, ecommerce, inbound marketing and social media, creativity and activation branding, UX / UI designing, and marketing automation and lead nurturing services. It also designs, plans, and executes traffic acquisition strategies that help generate leads or commercial opportunities. In addition, it provides hyper automation and control; data-based predictive analytics for business decision making; business transformation; software solutions; enterprise and IT governance; technological infrastructures; and cybersecurity solutions, as well as quality assurance services. It serves banking, finance, and fintech; insurance; mutual insurances; construction and real estate; public admin; health; pharma; telco; media; energy and utilities; industry; services; tourism, travel, and leisure; and retail, logistics, and distribution sectors. The company was founded in 1996 and is based in Gijón, Spain.

How the Company Makes Money

Izertis generates revenue through a diversified business model that primarily includes consulting services, IT solutions, and digital transformation projects. The company charges clients for project-based work, ongoing managed services, and software licensing fees. Key revenue streams include contracts with public sector entities, private corporations, and multinational companies seeking to modernize their IT infrastructure and enhance operational efficiency. Additionally, strategic partnerships with technology providers and software vendors help bolster its service offerings, allowing Izertis to tap into new markets and expand its client base. The company also benefits from recurring revenue through maintenance and support services, which provide a stable income stream.

Izertis SA Financial Statement Overview

Summary

Izertis SA demonstrates strong revenue growth and stable gross margins, which are positive indicators for future performance. However, declining net profit margins and high leverage present potential risks. The significant drop in free cash flow growth is a concern, suggesting the need for improved cash management. Overall, while the company shows growth potential, it must address profitability and leverage issues to ensure long-term stability.

Income Statement

Izertis SA has shown consistent revenue growth with a 7.04% increase in the latest year, indicating a positive trajectory. The gross profit margin has remained stable around 31.8%, which is healthy for the industry. However, the net profit margin has decreased to 3.22% from 4.30% the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins are solid, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.13, indicating significant leverage, which could pose risks if not managed carefully. Return on equity has decreased to 5.08%, reflecting a decline in profitability relative to shareholder equity. The equity ratio stands at 39.6%, suggesting a moderate level of financial stability.

Cash Flow

Izertis SA experienced a significant decline in free cash flow growth by 61.01%, which is concerning. The operating cash flow to net income ratio is 0.20, indicating that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is 0.52, showing that free cash flow is covering only half of the net income, which could impact future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.16M	133.08M	117.23M	88.43M	65.05M	50.74M
Gross Profit	20.11M	42.30M	37.22M	25.70M	17.30M	13.32M
EBITDA	19.42M	19.93M	17.96M	11.92M	7.79M	6.40M
Net Income	5.44M	4.28M	5.04M	3.83M	2.33M	1.30M
Balance Sheet
Total Assets	233.22M	212.72M	192.27M	144.63M	101.19M	62.39M
Cash, Cash Equivalents and Short-Term Investments	37.28M	33.17M	30.86M	35.86M	37.89M	15.42M
Total Debt	102.50M	95.18M	90.01M	69.59M	44.44M	22.04M
Total Liabilities	141.97M	128.16M	119.39M	95.95M	68.96M	39.00M
Stockholders Equity	90.65M	84.24M	72.65M	48.48M	33.48M	23.14M
Cash Flow
Free Cash Flow	8.45M	5.31M	10.29M	7.44M	2.10M	5.60M
Operating Cash Flow	9.24M	10.18M	13.32M	9.53M	4.03M	7.24M
Investing Cash Flow	-10.25M	-18.00M	-19.92M	-20.13M	-5.39M	-6.95M
Financing Cash Flow	9.96M	10.87M	384.00K	8.48M	22.61M	10.53M

Izertis SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:IZER, the sentiment is Positive. The current price of 10.2 is above the 20-day moving average (MA) of 10.12, above the 50-day MA of 9.71, and above the 200-day MA of 9.59, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 9.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:IZER.

Izertis SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IZER	66 Neutral	€294.67M	51.99	6.51%	―	18.40%	18.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%