2CRSI SA (AL2SI) AI Stock Analysis

• Market Cap: €271.57M
• Dividend Yield: N/A
• Average Volume (3M): 452.13K
• Price to Earnings (P/E): 127.4
• Beta (1Y): 2.04
• 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: 45 Neutral
• Price Target: €11.00 ▲(1.66% Upside)

The overall stock score of 45 reflects significant challenges in profitability and cash flow management, despite strong revenue growth. The technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation. These factors combined suggest caution for potential investors.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong market demand and successful product adoption, positioning the company for future expansion.

Market Position

By focusing on high-performance computing, 2CRSI is well-positioned in a growing industry, catering to sectors like AI and big data analytics.

Sustainability Focus

Emphasizing sustainability aligns with global trends towards eco-friendly solutions, potentially enhancing long-term competitive advantage.

Negative Factors

Profitability Challenges

Low profit margins indicate challenges in cost management and pricing power, which could hinder long-term profitability and investment returns.

Cash Flow Management

Poor cash flow management limits the company's ability to invest in growth opportunities and maintain operational flexibility, impacting future prospects.

Operational Efficiency

Low operational efficiency can affect the company's ability to scale profitably, potentially leading to increased costs and reduced competitiveness.

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

2CRSI SA demonstrates strong revenue growth, but profitability and cash flow metrics indicate underlying challenges. The balance sheet is relatively stable, with moderate leverage and a positive return on equity. However, the company's ability to generate cash remains a concern, which could impact future growth and operational flexibility.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	220.87M	220.70M	131.05M	188.32M	183.64M	163.34M
Gross Profit	10.82M	5.03M	13.85M	43.69M	40.44M	33.63M
EBITDA	6.53M	7.50M	1.90M	-16.92M	4.93M	2.89M
Net Income	2.13M	2.13M	-4.89M	-12.63M	-1.06M	-4.19M
Balance Sheet
Total Assets	90.08M	90.08M	73.17M	139.92M	163.40M	161.02M
Cash, Cash Equivalents and Short-Term Investments	1.15M	1.15M	1.09M	6.40M	4.72M	4.54M
Total Debt	12.90M	12.90M	10.41M	67.08M	71.60M	73.81M
Total Liabilities	60.89M	60.89M	46.90M	105.31M	123.13M	120.34M
Stockholders Equity	29.19M	29.19M	26.41M	24.42M	40.54M	40.75M
Cash Flow
Free Cash Flow	331.00K	331.00K	-4.02M	3.40M	7.54M	-6.42M
Operating Cash Flow	2.37M	2.37M	-2.20M	7.47M	10.19M	-2.16M
Investing Cash Flow	545.00K	284.00K	9.88M	-3.00M	-3.93M	-4.83M
Financing Cash Flow	-4.05M	-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: Negative
• RSI: Neutral
• STOCH: Negative

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 11.40, below the 50-day MA of 11.68, and above the 200-day MA of 8.88, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 88.25 is Negative, 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	45 Neutral	€271.57M	127.41	―	―	―	―
ALPWG	44 Neutral	€28.96M	-22.95	―	―	-11.36%	92.25%