Netgem SA (ALNTG) AI Stock Analysis

• Market Cap: €25.01M
• Dividend Yield: 6.46%
• Average Volume (3M): 9.96K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.26
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: FR
• Employees: 113
• Sector: General
• Sector Strength: N/A
• Industry: Communication Equipment
• EPS (TTM): 0.01
• Shares Outstanding: 34,887,726
• 10 Day Avg. Volume: 9,080
• 30 Day Avg. Volume: 9,962
• PEG Ratio: 0.07
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 0.00
• 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: 63 Neutral
• Price Target: €0.80 ▼(-5.76% Downside)

The score is primarily driven by solid financial stability (very low leverage and improved profitability), offset by declining revenue and uneven free-cash-flow conversion. Technicals are mixed with slightly positive momentum but weak longer-term trend signals. Valuation is moderately supportive, led by the strong dividend yield.

Positive Factors

Low leverage / strong balance sheet

Very low and improving leverage gives Netgem durable financial flexibility to weather industry cyclicality, fund platform development or customer rollouts without relying on heavy external debt, and sustain operations during revenue headwinds over the next 2–6 months.

High gross margin and improved profitability

A ~70% gross margin and return to positive EBIT/net margins imply a scalable software/platform cost structure and pricing power with operators. This margin profile supports durability of operating profits even if revenue growth is weak, aiding medium-term cash generation.

Consistent operating cash flow

Sustained positive operating cash flow provides a steady funding source for working capital, minor capex and customer deployments, reducing reliance on external financing and enabling the company to maintain platform operations and service delivery over the coming months.

Negative Factors

Shrinking revenue

A contracting top line erodes operating scale and recurring B2B2C contract value, making unit economics harder to sustain. Continued revenue decline limits reinvestment in product and sales, and raises the risk that current margins and cash generation are not durable.

Volatile free cash flow conversion

Inconsistent FCF conversion creates uncertainty about funds available for growth, dividends, or M&A. Even with positive OCF, swings in FCF indicate reinvestment or working-capital variability that can constrain strategic initiatives and capital returns over the medium term.

Shrinking asset base and earnings volatility

A declining asset base signals reduced capacity to scale deployments or support larger operator contracts. Coupled with noted swings in EBITDA margin, this suggests limited structural growth capacity and increases the risk that recent profitability is fragile rather than a sustained recovery.

Netgem SA Business Overview & Revenue Model

Company Description

Netgem SA develops, operates, and markets the NetgemTV digital entertainment platform in France and the United Kingdom. It offers Netgem TV, an OTT and multiscreen service accessible with or without a TV box, and on mobile devices and laptops; Videofutur, a VOD library; and SuperStream, a Wi-Fi mesh solution to manage the quality of Wi-Fi, as well as streaming services for media companies. The company was founded in 1996 and is based in Paris, France.

How the Company Makes Money

Netgem SA Financial Statement Overview

Summary

Financials show stability with a strong, conservatively levered balance sheet and improved profitability in 2024 (positive net/EBIT margins and very high gross margin). However, revenue is shrinking and free cash flow conversion is volatile (near break-even in 2024), which lowers confidence in the durability of the earnings recovery.

Income Statement

Profitability has improved meaningfully versus the 2021–2022 loss-making period, with 2024 showing a ~6% net margin and ~5% EBIT margin alongside a very strong ~70% gross margin. However, revenue has been shrinking (2024 down sharply, following a mild decline in 2023), and earnings quality looks somewhat volatile given the large swing in EBITDA margin (very high in 2020/2023 vs much lower in 2024). Overall: good margin profile and recovery, but weak top-line trajectory and inconsistent operating profitability.

Balance Sheet

The balance sheet is conservatively levered: debt-to-equity is low and improving (about 0.04 in 2024 vs ~0.34 in 2020), indicating limited financial risk from leverage. Equity has remained stable (~€25M), supporting resilience, while returns on equity recovered to ~8% in 2024 after being negative in 2021–2022. Main watch-out is that total assets have trended down since 2020, suggesting a smaller operating base and potentially lower capacity for growth.

Cash Flow

Operating cash flow is consistently positive and strong in absolute terms (around €5.8M–€7.1M in 2021–2024), which is a clear strength. However, free cash flow has been inconsistent—negative in 2020 and 2021, modestly positive in 2022–2023, and back to roughly break-even in 2024 (with a -100% growth rate), indicating reinvestment or working-capital swings are limiting cash available to shareholders. Overall cash generation is solid at the operating level, but conversion into durable free cash flow is uneven.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.47M	33.80M	35.58M	36.29M	28.32M	30.28M
Gross Profit	22.88M	23.60M	21.99M	20.07M	17.58M	15.86M
EBITDA	7.56M	1.80M	8.29M	6.53M	5.18M	11.12M
Net Income	1.57M	2.00M	541.00K	108.00K	-1.31M	7.19M
Balance Sheet
Total Assets	37.35M	38.21M	43.20M	47.10M	43.84M	51.41M
Cash, Cash Equivalents and Short-Term Investments	5.11M	7.01M	6.60M	6.16M	6.45M	10.21M
Total Debt	2.24M	994.00K	1.98M	2.86M	2.43M	8.37M
Total Liabilities	13.72M	13.25M	18.15M	23.30M	17.96M	25.59M
Stockholders Equity	23.63M	24.96M	25.05M	23.46M	24.04M	24.30M
Cash Flow
Free Cash Flow	348.00K	0.00	1.17M	573.00K	-147.00K	-3.86M
Operating Cash Flow	3.43M	7.00M	5.80M	7.06M	6.44M	4.24M
Investing Cash Flow	-1.59M	-4.67M	-7.90M	-6.03M	-6.83M	-6.03M
Financing Cash Flow	-2.61M	-2.66M	2.53M	-1.30M	-3.40M	3.53M

Netgem SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALNTG	63 Neutral	€25.01M	16.64	6.35%	6.46%	―	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ALBPK	45 Neutral	€27.59M	-26.35	―	―	15.01%	79.05%