Ekinops (EKI) AI Stock Analysis

• Market Cap: €42.17M
• Dividend Yield: N/A
• Average Volume (3M): 181.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 1.56%
• EPS Growth: -910.94%
• Country: FR
• Employees: 520
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.02
• Shares Outstanding: 27,034,998
• 10 Day Avg. Volume: 260,395
• 30 Day Avg. Volume: 181,062
• PEG Ratio: 0.05
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.85
• P/FCF Ratio: 9.24
• 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: 43 Neutral
• Price Target: €1.50 ▼(-14.77% Downside)

Ekinops faces significant challenges with declining profitability and negative earnings, reflected in a poor valuation score. Technical indicators suggest bearish momentum, further impacting the stock's attractiveness. While financial stability is supported by a healthy equity ratio, the overall outlook is concerning due to profitability and cash flow risks.

Ekinops Business Overview & Revenue Model

Company Description

Ekinops (EKI) is a telecommunications company specializing in network solutions that enable service providers and enterprises to optimize their data transport and networking capabilities. The company operates primarily in the optical transport and access network sectors, focusing on delivering innovative products such as optical transport systems, software-defined networking (SDN) solutions, and network management tools. Ekinops aims to enhance the performance and efficiency of networks while reducing operational costs.

How the Company Makes Money

Ekinops generates revenue through the sale of its hardware and software solutions, including optical transport systems and associated services. Key revenue streams include direct sales to telecommunications operators and enterprises, recurring revenues from maintenance and support services, and software licensing fees for their SDN products. Significant partnerships with major telecommunications companies and collaborations with technology providers also contribute to its earnings, allowing Ekinops to expand its market reach and enhance its product offerings.

Ekinops Financial Statement Overview

Summary

Ekinops faces challenges in revenue growth and profitability, with declining net income and negative EBIT in 2024. Despite a healthy equity ratio and manageable debt levels, inconsistent free cash flow growth and negative profitability metrics pose risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.37M	117.67M	129.10M	127.62M	103.57M	92.80M
Gross Profit	58.82M	64.51M	67.31M	56.54M	44.07M	40.98M
EBITDA	-20.67M	10.85M	16.57M	17.01M	13.58M	9.16M
Net Income	-8.97M	-6.95M	3.63M	12.02M	5.17M	3.17M
Balance Sheet
Total Assets	199.27M	185.38M	192.61M	182.71M	170.89M	168.49M
Cash, Cash Equivalents and Short-Term Investments	36.74M	46.37M	47.18M	39.35M	45.39M	49.63M
Total Debt	39.52M	31.40M	33.52M	28.37M	33.35M	43.48M
Total Liabilities	86.49M	73.28M	73.23M	69.13M	71.74M	77.55M
Stockholders Equity	112.78M	112.10M	119.39M	113.58M	99.14M	90.94M
Cash Flow
Free Cash Flow	13.38M	10.86M	5.50M	2.00M	7.17M	2.56M
Operating Cash Flow	15.71M	20.78M	13.53M	9.17M	12.22M	6.95M
Investing Cash Flow	-19.64M	-9.98M	-8.19M	-7.41M	-6.10M	-4.94M
Financing Cash Flow	-403.00K	-11.62M	2.51M	-7.96M	-10.49M	15.22M

Ekinops Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:EKI, the sentiment is Negative. The current price of 1.76 is below the 20-day moving average (MA) of 2.21, below the 50-day MA of 2.78, and below the 200-day MA of 3.46, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 15.93 is Positive, neither overbought nor oversold. The STOCH value of 20.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:EKI.

Ekinops Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALBPK	―	€30.73M	―	―	―	15.03%	79.05%
EKI	―	€42.17M	―	-7.69%	―	1.56%	-910.94%
ATEME	―	€64.86M	―	-1.34%	―	3.26%	95.41%