Ekinops (EKI) AI Stock Analysis

• Market Cap: €121.64M
• Dividend Yield: N/A
• Average Volume (3M): 35.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -8.85%
• EPS Growth: -287.08%
• Country: FR
• Employees: 520
• Sector: Technology
• Sector Strength: 89
• Industry: Communication Equipment
• EPS (TTM): -0.26
• Shares Outstanding: 27,034,998
• 10 Day Avg. Volume: 25,624
• 30 Day Avg. Volume: 35,772
• PEG Ratio: 0.14
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 109.82
• 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

• Rating: 60 Neutral
• Price Target: €5.00 ▲(12.36%Upside)

Ekinops' stock is buoyed by strong technical indicators, suggesting a bullish trend, which is the most significant positive factor. However, the company's financial performance and valuation metrics highlight risks, particularly due to declining profitability and a negative P/E ratio. These factors contribute to a moderate overall score.

Ekinops Business Overview & Revenue Model

Company Description

EKINOPS S.A. provides telecommunications solutions for telecom operators and businesses in France and internationally. The company offers Ekinops360, an optical transport and OTN switch solution; OneAccess, which provides physical and virtualized access platforms for enterprise and edge networks; and Compose that supports service providers in making their networks software-defined with various software management tools and services. It also provides optical transport, voice and data access, and software-defined services. The company was founded in 2003 and is based in Lannion, France.

How the Company Makes Money

Ekinops generates revenue primarily through the sale of its optical transport systems and network access solutions. These products enable telecommunications service providers to enhance their network capacity and efficiency, thereby supporting the growing demand for data and connectivity. The company also earns revenue from its virtualization software products, which provide cost-effective and flexible network management solutions. Ekinops' earnings are bolstered by strategic partnerships with telecommunications companies and technology providers, as well as through its ability to adapt to evolving market needs and technological advancements.

Ekinops Financial Statement Overview

Summary

Ekinops faces challenges with declining revenue and profitability, including negative EBIT in 2024. The balance sheet maintains a healthy equity ratio, signaling financial stability, while operating cash flow shows strength but inconsistency in free cash flow growth.

Income Statement

Ekinops experienced a decline in total revenue from 2023 to 2024, indicating a negative growth trajectory. The gross profit margin remains relatively stable, but a significant deterioration in EBIT and net income margins is observed in 2024, with EBIT turning negative. These factors reflect challenges in profitability and operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicative of manageable leverage levels. The equity ratio remains healthy, demonstrating a strong equity base. However, the decrease in stockholders' equity from 2023 to 2024 suggests potential risk in financial stability.

Cash Flow

Operating cash flow improved significantly in 2024, but free cash flow growth is uneven year-over-year. The free cash flow to net income ratio shows some inefficiency in converting net income into cash. Overall, cash flow management is mixed with strengths in operational cash generation but weaknesses in free cash flow consistency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.67M	129.10M	127.62M	103.57M	92.80M
Gross Profit	64.51M	67.31M	56.54M	44.07M	40.98M
EBITDA	10.85M	16.57M	17.01M	13.58M	9.16M
Net Income	-6.95M	3.63M	12.02M	5.17M	3.17M
Balance Sheet
Total Assets	185.38M	192.61M	182.71M	170.89M	168.49M
Cash, Cash Equivalents and Short-Term Investments	46.37M	47.18M	39.35M	45.39M	49.63M
Total Debt	31.40M	33.52M	28.37M	33.35M	43.48M
Total Liabilities	73.28M	73.23M	69.13M	71.74M	77.55M
Stockholders Equity	112.10M	119.39M	113.58M	99.14M	90.94M
Cash Flow
Free Cash Flow	10.86M	5.50M	2.00M	7.17M	2.56M
Operating Cash Flow	20.78M	13.53M	9.17M	12.22M	6.95M
Investing Cash Flow	-9.98M	-8.19M	-7.41M	-6.10M	-4.94M
Financing Cash Flow	-11.62M	2.51M	-7.96M	-10.49M	15.22M

Ekinops Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.45
• 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:EKI, the sentiment is Positive. The current price of 4.45 is above the 20-day moving average (MA) of 4.43, above the 50-day MA of 3.88, and above the 200-day MA of 3.68, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 47.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:EKI.

Ekinops Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$32.90B	6.03	-11.70%	1.95%	5.55%	-19.87%
EKI	60 Neutral	€121.64M	―	-6.01%	―	-8.85%	-287.08%
0QVW		€45.93M	―	-15.03%	―	―	―
0EOI		€19.79M	―	-7.32%	7.16%	―	―
0N9W		€32.16M	16.74	7.81%	4.47%	―	―
20U		€10.10M	6.20	117.21%	0.87%	―	―
ALBPK		€20.25M	―		―	―	―