Lectra SA (LSS) AI Stock Analysis

• Market Cap: €869.64M
• Dividend Yield: 1.69%
• Average Volume (3M): 20.73K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.86
• Revenue Growth: 0.40%
• EPS Growth: -9.67%
• Country: FR
• Employees: 3,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.30
• Shares Outstanding: 37,832,966
• 10 Day Avg. Volume: 15,399
• 30 Day Avg. Volume: 20,725
• PEG Ratio: -3.55
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 12.08
• 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: €28.00
• Price Target Upside: 18.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €24.50 ▲(3.38% Upside)

Lectra SA's overall stock score is primarily supported by its solid financial performance, characterized by strong cash flow and a stable balance sheet. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued. These factors contribute to a moderate overall score.

Positive Factors

Recurring Revenue Model

Lectra's subscription model ensures a steady and predictable revenue stream, enhancing financial stability and enabling long-term planning.

Strong Cash Flow

Robust cash generation supports investment in growth opportunities and provides a buffer against economic downturns, reinforcing financial resilience.

Healthy Profit Margins

Strong cost management and operational efficiency allow Lectra to maintain high profit margins, supporting sustainable profitability.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests potential market challenges or competitive pressures, which could impact long-term growth prospects.

Decreased Net Profit Margin

A declining net profit margin indicates challenges in maintaining profitability, which may affect future earnings and investment capacity.

EPS Decline

A decrease in EPS reflects reduced profitability per share, potentially affecting investor confidence and the company's ability to raise capital.

Lectra SA Business Overview & Revenue Model

Company Description

Lectra SA designs smart industrial solutions for fashion, automotive, and furniture markets. The company's solutions include software, automated cutting equipment, and related services, which enable customers to automate and optimize product design, development, and manufacture of garments, car seats and interiors, airbags, and sofas, as well as to digitalize their processes. It also offers technical maintenance, support, training, and consulting services; and sells consumables and parts. The company operates in Europe, the Americas, the Asia-Pacific, and internationally. Lectra SA was founded in 1973 and is headquartered in Paris, France.

How the Company Makes Money

Lectra generates revenue primarily through the sale of software licenses, maintenance services, and hardware products. The company offers a subscription-based model for its software, which provides a steady stream of recurring income. Additionally, Lectra earns money from training and consulting services that help clients optimize their operations. Key partnerships with major players in the fashion and automotive industries also contribute to its earnings, as these collaborations often lead to large-scale contracts and increased demand for Lectra's solutions. The company continually invests in research and development to enhance its product offerings, ensuring it remains competitive and can adapt to evolving market trends.

Lectra SA Financial Statement Overview

Summary

Lectra SA demonstrates solid financial health with strong cash flow and a stable balance sheet. Despite a slight decline in revenue growth, the company maintains healthy profit margins and efficient operations. The moderate leverage and effective equity utilization further strengthen its financial position.

Income Statement

Lectra SA's income statement shows a stable gross profit margin of approximately 72% in the TTM, indicating strong cost management. However, the net profit margin has slightly decreased to 5.86%, reflecting challenges in maintaining profitability. The revenue growth rate has turned negative at -1.11% in the TTM, suggesting potential market challenges or competitive pressures. EBIT and EBITDA margins remain healthy, indicating operational efficiency.

Balance Sheet

The balance sheet of Lectra SA is solid with a debt-to-equity ratio of 0.37, indicating moderate leverage. The return on equity is 9.20%, showing effective use of equity to generate profits. The equity ratio stands at 39.5%, reflecting a stable financial structure with a good proportion of equity financing.

Cash Flow

Lectra SA's cash flow statement is strong, with a free cash flow growth rate of 10.66% in the TTM, indicating robust cash generation. The operating cash flow to net income ratio is 0.32, suggesting efficient conversion of income to cash. The free cash flow to net income ratio is high at 0.90, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	525.67M	526.67M	477.58M	521.93M	387.58M	236.18M
Gross Profit	379.43M	376.87M	333.18M	347.69M	262.57M	176.49M
EBITDA	90.15M	90.06M	77.70M	86.41M	50.04M	27.27M
Net Income	30.79M	31.16M	33.90M	44.39M	28.25M	17.53M
Balance Sheet
Total Assets	829.97M	915.68M	809.22M	834.90M	795.96M	340.86M
Cash, Cash Equivalents and Short-Term Investments	60.56M	81.90M	115.05M	130.63M	130.59M	134.63M
Total Debt	121.79M	134.64M	129.31M	153.65M	173.82M	15.85M
Total Liabilities	486.13M	541.34M	391.36M	382.68M	395.17M	148.69M
Stockholders Equity	327.86M	353.29M	409.83M	449.50M	398.06M	192.01M
Cash Flow
Free Cash Flow	86.81M	81.55M	52.49M	50.10M	48.34M	31.63M
Operating Cash Flow	96.39M	88.32M	59.57M	57.79M	54.51M	36.03M
Investing Cash Flow	-12.26M	-80.93M	-24.25M	-12.34M	-187.34M	-5.91M
Financing Cash Flow	-73.62M	-44.23M	-49.53M	-46.03M	125.87M	-14.29M

Lectra SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.70
• 50DMA: Positive
• 100DMA: Positive
• 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:LSS, the sentiment is Positive. The current price of 23.7 is above the 20-day moving average (MA) of 23.06, above the 50-day MA of 23.31, and below the 200-day MA of 24.29, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 54.13 is Neutral, neither overbought nor oversold. The STOCH value of 56.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:LSS.

Lectra SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWP	75 Outperform	€350.14M	16.82	25.87%	5.51%	14.40%	1.92%
ALBFR	68 Neutral	€317.66M	37.49	21.64%	―	24.74%	18.04%
QDT	67 Neutral	€510.14M	8.05	5.80%	4.70%	0.13%	11.29%
LSS	64 Neutral	€869.64M	31.43	8.16%	1.69%	0.40%	-9.67%
LIN	63 Neutral	€216.84M	7.88	―	3.94%	0.23%	10.46%
74SW	62 Neutral	€1.06B	20.98	9.71%	―	103.99%	17.53%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%