ABC Arbitrage (ABCA) AI Stock Analysis

• Market Cap: €314.01M
• Dividend Yield: 6.43%
• Average Volume (3M): 43.48K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.23
• Revenue Growth: 53.67%
• EPS Growth: 116.00%
• Country: FR
• Employees: 108
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.30
• Shares Outstanding: 59,608,880
• 10 Day Avg. Volume: 57,982
• 30 Day Avg. Volume: 43,476
• PEG Ratio: 0.17
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 5.53
• P/FCF Ratio: 13.46
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: €6.00 ▲(13.42% Upside)

ABC Arbitrage's strong financial performance and attractive valuation are the primary drivers of its overall score. However, technical indicators suggest potential bearish momentum, which tempers the overall outlook. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Balance Sheet Health

A strong balance sheet with zero debt enhances financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.

Profitability

High net profit margins indicate efficient cost management and strong pricing power, which can sustain profitability even in challenging market conditions.

Cash Flow Management

Effective cash flow management ensures the company can meet operational needs and invest strategically, supporting long-term growth and stability.

Negative Factors

Revenue Decline

A declining revenue trend can indicate challenges in market demand or competitive pressures, potentially impacting future profitability and growth prospects.

Operational Efficiency Concerns

Lack of detailed operational efficiency metrics raises concerns about cost management and profitability, which could affect long-term business performance.

Stagnant Free Cash Flow Growth

Stagnant free cash flow growth may limit the company's ability to invest in new opportunities or return capital to shareholders, affecting future growth potential.

ABC Arbitrage Business Overview & Revenue Model

Company Description

ABC Arbitrage (ABCA) is a financial services company specializing in arbitrage trading and investment strategies. The company operates primarily in the finance and investment sectors, leveraging advanced algorithms and quantitative methods to identify and exploit price discrepancies in various financial markets. ABC Arbitrage focuses on providing liquidity and ensuring market efficiency through its proprietary trading systems, which are designed to capitalize on short-term market movements.

How the Company Makes Money

ABC Arbitrage generates revenue primarily through its trading activities, where it profits from the differences in prices of financial instruments across different markets. The company employs a quantitative trading strategy that involves high-frequency trading and market making, allowing it to earn small margins on large volumes of trades. Additionally, ABC Arbitrage may earn fees from providing liquidity to other market participants and potentially from partnerships with financial institutions that seek to utilize its trading expertise. The company's earnings are significantly influenced by market volatility and liquidity, with higher trading volumes typically leading to increased revenue.

ABC Arbitrage Financial Statement Overview

Summary

ABC Arbitrage exhibits strong financial health with high profitability and low leverage. Despite a declining revenue trend, the firm maintains robust margins and a solid balance sheet. Cash flow management is effective, supporting operational requirements and strategic investments.

Income Statement

ABC Arbitrage has demonstrated strong net profit margins and consistent profitability over the years, with a net profit margin of 52.2% in 2024. However, there has been a noticeable decline in revenue over the recent periods, with a revenue growth rate of -16.0% from 2022 to 2023 and a further drop to 2024. EBIT and EBITDA margins are unavailable for 2024, which raises concerns about operational efficiency.

Balance Sheet

The company's balance sheet is robust, with zero debt in 2024, resulting in an excellent debt-to-equity ratio. The equity ratio is also strong at 92.0%, and the return on equity (ROE) is impressive at 16.4% for 2024, indicating effective use of equity to generate profits. Overall, ABC Arbitrage maintains a stable financial position with low leverage.

Cash Flow

ABC Arbitrage's cash flow is healthy, characterized by positive free cash flow and an operating cash flow to net income ratio of 0.79 in 2024. However, the free cash flow growth rate has stagnated due to relatively stable operating cash flows. The company effectively manages its investments and financing activities, ensuring steady cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.13M	51.41M	39.81M	61.44M	64.34M	69.11M
Gross Profit	27.10M	48.54M	19.02M	45.92M	50.00M	51.26M
EBITDA	31.75M	-882.00K	18.39M	30.85M	37.11M	37.09M
Net Income	35.66M	26.84M	16.48M	29.15M	28.04M	35.09M
Balance Sheet
Total Assets	190.36M	178.36M	172.11M	187.33M	185.20M	173.06M
Cash, Cash Equivalents and Short-Term Investments	173.00M	161.39M	156.95M	168.40M	152.24M	159.09M
Total Debt	3.33M	4.04M	4.84M	5.70M	5.39M	1.15M
Total Liabilities	15.93M	14.23M	16.70M	25.67M	25.18M	19.03M
Stockholders Equity	174.43M	164.13M	155.41M	161.66M	160.02M	154.03M
Cash Flow
Free Cash Flow	0.00	21.11M	19.98M	24.40M	34.05M	24.33M
Operating Cash Flow	24.96M	21.11M	19.98M	24.40M	34.05M	24.33M
Investing Cash Flow	-840.00K	-1.20M	-2.06M	-890.00K	-707.00K	-1.03M
Financing Cash Flow	-20.89M	-19.40M	-22.93M	-27.54M	-23.86M	-22.32M

ABC Arbitrage Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ABCA, the sentiment is Neutral. The current price of 5.29 is below the 20-day moving average (MA) of 5.35, below the 50-day MA of 5.37, and below the 200-day MA of 5.66, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 49.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:ABCA.

ABC Arbitrage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABCA	73 Outperform	€314.01M	8.80	21.46%	6.43%	53.67%	116.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MF	65 Neutral	€3.53B	-38.17	-2.85%	7.66%	9.86%	-118.70%
TKO	61 Neutral	€2.72B	14.94	5.94%	5.10%	12.44%	12.15%
ALBON	50 Neutral	€109.66M	166.06	0.37%	3.19%	-17.77%	-91.47%
RF	46 Neutral	€3.55B	-5.94	-8.86%	5.02%	11.76%	-735.88%