Izertis SA (IZER) AI Stock Analysis

• Market Cap: €314.43M
• Dividend Yield: N/A
• Average Volume (3M): 15.65K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.11
• Revenue Growth: 18.40%
• EPS Growth: 18.62%
• Country: ES
• Employees: 1,900
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 34,936,913
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €11.50 ▲(8.49% Upside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Izertis SA's overall stock score of 60 reflects a balanced but cautious outlook. The strongest factor is technical analysis (score: 80), with bullish price trends above key moving averages indicating upward momentum, though an overbought RSI introduces caution. Financial performance (score: 53) weighs heavily due to declining profitability and cash flow concerns despite revenue growth. Valuation (score: 45) further tempers the score with a high P/E ratio suggesting overvaluation.

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's financial performance is mixed. Revenue growth of 7.04% in 2024 is positive, and equity growth to €84.24M signals stability. However, a drop in Net Profit Margin to 3.22%, high Debt-to-Equity Ratio of 1.13, and a 61.01% decline in Free Cash Flow to €5.31M highlight profitability and cash flow concerns, posing risks to financial flexibility.

Income Statement

Izertis SA shows consistent revenue growth, with a 7.04% increase in 2024 compared to 2023, reflecting a positive trajectory. Gross Profit Margin remains stable at 31.79%, indicating decent cost control. However, Net Profit Margin dropped to 3.22% in 2024 from 4.30% in 2023, signaling reduced profitability. EBIT Margin (7.80%) and EBITDA Margin (14.97%) are reasonable but show limited improvement, highlighting moderate operational efficiency with room for better bottom-line growth.

Balance Sheet

The Balance Sheet reflects a mixed picture. Stockholders' Equity grew to €84.24M in 2024 from €72.65M in 2023, showing improved financial stability. However, the Debt-to-Equity Ratio remains high at 1.13, indicating significant leverage and potential risk. Return on Equity declined to 5.08% in 2024 from 6.93% in 2023, reflecting weaker returns for shareholders. Equity Ratio at 39.61% suggests a moderate asset base funded by equity, but high debt levels warrant caution.

Cash Flow

Cash Flow performance raises concerns. Free Cash Flow dropped sharply by 61.01% in 2024 to €5.31M from €10.29M in 2023, signaling challenges in generating cash after capital expenditures. Operating Cash Flow to Net Income Ratio is low at 0.20, indicating limited cash conversion from profits. Free Cash Flow to Net Income Ratio at 0.52 is moderate but weakened from prior years, reflecting cash flow constraints that could impact future growth or debt management.

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: Negative
• Last Price: 10.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:IZER, the sentiment is Negative. The current price of 10.6 is above the 20-day moving average (MA) of 8.86, above the 50-day MA of 9.49, and above the 200-day MA of 9.79, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 90.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:IZER.

Izertis SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IZER	60 Neutral	€314.43M	26.62	6.22%	―	18.40%	18.62%