Linedata Services (LIN) AI Stock Analysis

• Market Cap: €269.12M
• Dividend Yield: 3.11%
• Average Volume (3M): 1.04K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.29
• Revenue Growth: 0.23%
• EPS Growth: 10.46%
• Country: FR
• Employees: 1,307
• Sector: Services
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 4,960,807
• 10 Day Avg. Volume: 1,384
• 30 Day Avg. Volume: 1,045
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €65.00
• Price Target Upside: 15.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: €65.00 ▲(15.66% Upside)

Linedata Services' overall stock score is primarily influenced by its stable financial performance and attractive valuation. However, the technical analysis indicates bearish momentum, which is a significant risk factor. The lack of earnings call and corporate events data means these areas did not impact the score.

Linedata Services Business Overview & Revenue Model

Company Description

Linedata Services (LIN) is a global provider of technology solutions and services for the financial services industry, focusing on asset management, institutional investment, and alternative investment sectors. The company offers a comprehensive suite of software products and services designed to enhance efficiency, reduce operational risk, and improve compliance for its clients. Core offerings include portfolio management systems, risk and performance analytics, and regulatory reporting solutions, catering to a diverse clientele that includes asset managers, banks, and insurance companies.

How the Company Makes Money

Linedata generates revenue primarily through the sale of software licenses, subscription-based services, and professional services. Key revenue streams include recurring software subscriptions that provide ongoing access to its platforms and updates, which fosters customer retention and predictable income. Additionally, the company earns money through implementation services, training, and consulting, helping clients effectively integrate and utilize its solutions. Strategic partnerships with other financial technology firms and data providers further enhance Linedata's offerings and can lead to cross-selling opportunities, contributing to its overall earnings. The company's focus on compliance and risk management solutions positions it well in a regulatory-heavy environment, providing a steady demand for its services.

Linedata Services Financial Statement Overview

Summary

Linedata Services presents a stable financial profile with strengths in cash flow generation and return on equity. However, challenges in revenue growth and cost management are areas that require attention. The company has shown improvement in leverage management, but maintaining consistent growth and profitability will be crucial for future success.

Income Statement

Linedata Services shows a mixed performance in its income statement. The gross profit margin has decreased over the years, indicating potential cost management issues. However, the net profit margin has remained relatively stable, suggesting effective control over non-operating expenses. Revenue growth has been inconsistent, with a notable decline in the most recent year, which could be a concern for future growth prospects.

Balance Sheet

The company's balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved over the years, indicating better leverage management. Return on equity is strong, suggesting efficient use of shareholder funds. However, the equity ratio indicates a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals a positive trend, with free cash flow growth and a healthy operating cash flow to net income ratio. The company has managed to maintain a strong free cash flow to net income ratio, highlighting its ability to generate cash from operations effectively. However, fluctuations in free cash flow growth rates suggest potential volatility in cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	183.70M	183.29M	172.67M	160.20M	161.01M
Gross Profit	61.80M	58.57M	132.35M	126.90M	53.72M
EBITDA	39.90M	52.75M	53.13M	54.71M	45.04M
Net Income	28.10M	25.50M	26.46M	28.29M	20.26M
Balance Sheet
Total Assets	324.10M	309.41M	308.46M	318.14M	297.59M
Cash, Cash Equivalents and Short-Term Investments	38.47M	30.50M	25.38M	38.84M	30.18M
Total Debt	101.50M	120.09M	130.18M	101.08M	114.31M
Total Liabilities	185.70M	196.45M	209.44M	172.35M	176.13M
Stockholders Equity	138.40M	112.95M	99.02M	145.79M	121.46M
Cash Flow
Free Cash Flow	42.36M	31.78M	37.07M	36.55M	25.82M
Operating Cash Flow	49.40M	40.41M	48.40M	51.27M	37.99M
Investing Cash Flow	-7.05M	-8.88M	-11.31M	-14.87M	-12.19M
Financing Cash Flow	-34.88M	-25.95M	-51.51M	-29.19M	-11.94M

Linedata Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:LIN, the sentiment is Negative. The current price of 56.2 is below the 20-day moving average (MA) of 60.47, below the 50-day MA of 66.05, and below the 200-day MA of 74.44, indicating a bearish trend. The MACD of -2.49 indicates Positive momentum. The RSI at 21.76 is Positive, neither overbought nor oversold. The STOCH value of 8.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:LIN.

Linedata Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWP	71 Outperform	336.78M	16.45	22.85%	5.67%	14.40%	1.92%
QDT	69 Neutral	547.80M	8.28	5.93%	4.37%	2.84%	-2.45%
ALBFR	68 Neutral	310.60M	38.93	20.04%	―	25.69%	38.74%
LIN	64 Neutral	€269.12M	9.89	22.37%	3.11%	0.23%	10.46%
LSS	59 Neutral	892.33M	29.44	9.39%	1.69%	5.07%	-4.31%
ALCPB	39 Underperform	209.61M	73.53	11.13%	―	-32.07%	0.00%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%