Linedata Services (LIN) AI Stock Analysis

• Market Cap: €216.84M
• Dividend Yield: 3.93%
• Average Volume (3M): 668.00
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.43
• 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: 963
• 30 Day Avg. Volume: 668
• PEG Ratio: 1.41
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 9.98
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €48.00 ▲(7.87% 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 poses a risk to the stock's short-term performance. The lack of recent earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates Linedata's ability to efficiently convert revenue into cash, supporting reinvestment and debt management.

Return on Equity

High return on equity reflects effective management and profitability, enhancing shareholder value and supporting long-term growth.

Regulatory Positioning

Strong positioning in compliance and risk management ensures steady demand, aligning with industry trends and regulatory needs.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can hinder long-term expansion and market competitiveness, requiring strategic adjustments to stabilize growth.

Cost Management Issues

Decreasing gross profit margins suggest rising costs, which can pressure profitability if not addressed through improved efficiency.

Debt Reliance

Moderate reliance on debt may limit financial flexibility and increase risk, necessitating careful leverage management to ensure stability.

Linedata Services Business Overview & Revenue Model

Company Description

Linedata Services S.A. engages in development and distribution of financial software in Southern Europe, Northern Europe, North America, and Asia. The company operates through Asset Management, Lending & Leasing, and Other Activities segments. It provides asset management solutions for asset managers and alternative managers, as well as transfer agents; software for fund accounting, NAV oversight, and transfer agency; data analytics and management services; and solutions for employee savings and insurance, and pension funds. The company also offers solutions for lenders and lessors, such as commercial and syndicated lending, as well as for automotive, consumer, and equipment finance; and digitalization, marketplace, outsourced spreading, professional and hosting, and remarketing services, as well as business process as a service. In addition, it provides advisory, risk and research, middle and office, and risk services, as well as technology solutions. The company was incorporated in 1998 and is headquartered in Neuilly-sur-seine, France.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	180.61M	183.70M	183.29M	172.67M	160.20M	161.01M
Gross Profit	56.87M	65.49M	58.57M	56.91M	59.71M	55.22M
EBITDA	52.48M	56.38M	52.75M	53.13M	54.71M	49.11M
Net Income	25.55M	28.10M	25.50M	26.46M	28.29M	20.26M
Balance Sheet
Total Assets	306.60M	324.10M	309.41M	308.46M	318.14M	297.59M
Cash, Cash Equivalents and Short-Term Investments	24.60M	38.47M	30.50M	25.38M	38.84M	30.18M
Total Debt	89.70M	101.50M	120.09M	130.18M	101.08M	114.31M
Total Liabilities	190.30M	185.70M	196.45M	209.44M	172.35M	176.13M
Stockholders Equity	116.30M	138.40M	112.95M	99.02M	145.79M	121.46M
Cash Flow
Free Cash Flow	25.86M	42.36M	31.78M	37.07M	36.55M	25.82M
Operating Cash Flow	34.46M	49.40M	40.41M	48.40M	51.27M	38.45M
Investing Cash Flow	-10.45M	-7.05M	-8.88M	-11.31M	-14.87M	-22.58M
Financing Cash Flow	-43.86M	-34.88M	-25.95M	-51.51M	-29.19M	-2.01M

Linedata Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 44.5 is above the 20-day moving average (MA) of 44.46, below the 50-day MA of 49.15, and below the 200-day MA of 65.74, indicating a neutral trend. The MACD of -1.15 indicates Negative momentum. The RSI at 31.78 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, 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	75 Outperform	€342.03M	16.52	25.87%	5.58%	14.40%	1.92%
ALBFR	68 Neutral	€317.66M	37.49	21.64%	―	24.74%	18.04%
QDT	67 Neutral	€486.86M	7.68	5.80%	4.92%	0.13%	11.29%
LSS	64 Neutral	€869.64M	31.43	8.16%	1.65%	0.40%	-9.67%
LIN	63 Neutral	€216.84M	7.88	―	3.93%	0.23%	10.46%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ALCPB	41 Neutral	€193.46M	-64.07	-6.17%	―	-28.85%	92.28%

Linedata Services Corporate Events

Linedata Suffers Cyberattack on Asset Management Domain

Linedata has experienced a cyberattack affecting its Asset Management business line, with data being maliciously encrypted. The company is conducting an in-depth investigation with cybersecurity experts and has taken immediate measures to contain the threat and protect client data. Efforts are underway to restore systems securely, and a complaint has been filed with judicial authorities. Linedata’s CEO expressed regret over the incident and assured clients of the company’s commitment to mitigating its effects and resuming normal operations.