2CRSI SA (AL2SI) AI Stock Analysis

• Market Cap: €493.87M
• Dividend Yield: N/A
• Average Volume (3M): 452.13K
• Price to Earnings (P/E): 69.7
• Beta (1Y): 2.39
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: FR
• Employees: 117
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): N/A
• Shares Outstanding: 22,333,097
• 10 Day Avg. Volume: 350,039
• 30 Day Avg. Volume: 452,132
• PEG Ratio: -0.54
• Price to Book (P/B): 5.08
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 448.14
• 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: 52 Neutral
• Price Target: €25.00 ▲(131.05% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held back primarily by weak profitability and cash flow quality despite strong revenue growth, with an additional drag from a high P/E valuation. These negatives are partially offset by strong technical trend signals, with the stock trading well above key moving averages and supported by positive momentum indicators.

Positive Factors

Exceptional revenue growth

A 950% revenue increase indicates substantial market traction and rapid customer adoption, giving the company a larger base to leverage fixed costs and justify continued investment in product development and sales capacity. Sustained top-line expansion supports long-term scaling if margins and cash conversion improve.

HPC and energy-efficient product focus

A focus on high-performance computing and energy-efficient hardware aligns with durable structural demand from AI/ML, big data and data centers. This product-market fit supports recurring enterprise and research contracts, differentiates on sustainability, and underpins long-term demand for bespoke compute solutions.

Moderate leverage and positive ROE

A moderate D/E of 0.44 and positive ROE signal a balanced capital structure and that management generates returns for shareholders despite margin pressures. This financial flexibility supports raising incremental capital or using leverage for targeted investments without excessive solvency risk over the medium term.

Negative Factors

Very low gross and net margins

Gross margin of ~2.3% and net margin under 1% provide minimal buffer against cost inflation or pricing pressure, limiting reinvestment capacity and resilience. In a hardware-heavy business, persistent ultra-thin margins make profitable scaling difficult and increase sensitivity to component costs and competitive pricing.

Weak cash generation

A >100% decline in free cash flow growth and an OCF/net income ratio of 0.04 show poor cash conversion. This materially constrains funding for inventory, R&D, and capital expenditures typical in HPC hardware, increasing reliance on external financing and elevating execution risk during growth phases.

Small scale and low operational efficiency

A workforce of 117 combined with low EBIT/EBITDA margins suggests limited scale and operational leverage. For capital-intensive hardware and data-center solutions, small scale can raise per-unit costs, constrain global sales and support capacity, and slow ability to compete with larger providers on price and service.

2CRSI SA Business Overview & Revenue Model

Company Description

2CRSI S.A., together with its subsidiaries, develops, manufactures, and distributes computing solutions in France and internationally. Its products include rackmount servers, OCP servers and racks, and workstations. The company also provides air, direct liquid, and immersion cooling; data science; artificial intelligence, and cloud computing and gaming solutions; and edge computing solutions, as well as professional, hosted, and HPC managed services. It offers IT solutions and services to cloud computing, datacenters, enterprise IT, big data, HPC, artificial intelligence, 5G, IoT, and rugged PCs, as well as embedded and edge computing markets; and hardware solutions, datacenter housing, and hosting services. 2CRSI S.A. was incorporated in 2005 and is headquartered in Strasbourg, France.

How the Company Makes Money

2CRSI generates revenue primarily through the sale of its proprietary hardware solutions, including servers and custom computing systems. In addition to hardware sales, the company also provides related services such as system integration, support, and maintenance, which contribute to its recurring revenue streams. Key revenue sources include direct sales to end-users, partnerships with technology distributors, and collaborations with large enterprises and research institutions. The company may also benefit from government contracts or grants aimed at promoting technological advancements in high-performance computing.

2CRSI SA Financial Statement Overview

Summary

Revenue growth is exceptionally strong (950%), but profitability is thin (gross margin 2.28%, net margin 0.96%) and cash generation is weak (free cash flow growth -123.38%, low cash conversion vs. net income). Balance sheet leverage is moderate (debt-to-equity 0.44) but does not offset the cash flow and margin concerns.

Income Statement

The company shows a significant revenue growth rate of 950% in the latest period, indicating a strong recovery. However, the gross profit margin is quite low at 2.28%, and the net profit margin is also modest at 0.96%. The EBIT and EBITDA margins are relatively low, suggesting limited operational efficiency. Overall, while revenue growth is impressive, profitability remains a concern.

Balance Sheet

The debt-to-equity ratio is moderate at 0.44, indicating a balanced approach to leveraging. Return on equity is positive at 7.29%, showing some profitability for shareholders. The equity ratio stands at 32.41%, reflecting a stable financial structure. While the balance sheet shows stability, the company's past high leverage could pose potential risks.

Cash Flow

The company experienced a significant decline in free cash flow growth, down by 123.38%. The operating cash flow to net income ratio is low at 0.04, indicating challenges in converting income into cash. The free cash flow to net income ratio is 0.14, suggesting limited cash generation relative to net income. Cash flow management appears to be a weak point for the company.

Breakdown	Jun 2025	Feb 2023	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	220.70M	131.05M	188.32M	183.64M	163.34M
Gross Profit	5.03M	13.85M	43.69M	40.44M	33.63M
EBITDA	7.50M	1.90M	-16.92M	4.93M	2.89M
Net Income	2.13M	-4.89M	-12.63M	-1.06M	-4.19M
Balance Sheet
Total Assets	90.08M	73.17M	139.92M	163.40M	161.02M
Cash, Cash Equivalents and Short-Term Investments	1.15M	1.09M	6.40M	4.72M	4.54M
Total Debt	12.90M	10.41M	67.08M	71.60M	73.81M
Total Liabilities	60.89M	46.90M	105.31M	123.13M	120.34M
Stockholders Equity	29.19M	26.41M	24.42M	40.54M	40.75M
Cash Flow
Free Cash Flow	331.00K	-4.02M	3.40M	7.54M	-6.42M
Operating Cash Flow	2.37M	-2.20M	7.47M	10.19M	-2.16M
Investing Cash Flow	284.00K	9.88M	-3.00M	-3.93M	-4.83M
Financing Cash Flow	-3.28M	-8.61M	-5.12M	-7.21M	395.00K

2CRSI SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:AL2SI, the sentiment is Positive. The current price of 10.82 is below the 20-day moving average (MA) of 22.59, below the 50-day MA of 16.84, and below the 200-day MA of 11.62, indicating a bullish trend. The MACD of 1.99 indicates Positive momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 32.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:AL2SI.

2CRSI 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%
AL2SI	52 Neutral	€493.87M	69.71	―	―	―	―
ALPWG	44 Neutral	€36.82M	-25.47	―	―	-11.36%	92.25%