Neurones (NRO) AI Stock Analysis

• Market Cap: €950.04M
• Dividend Yield: 3.35%
• Average Volume (3M): 8.13K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.58
• Revenue Growth: 7.39%
• EPS Growth: 4.58%
• Country: FR
• Employees: 6,849
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.93
• Shares Outstanding: 24,328,716
• 10 Day Avg. Volume: 10,004
• 30 Day Avg. Volume: 8,127
• PEG Ratio: 2.95
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 14.75
• 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: €49.00
• Price Target Upside: 26.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: €49.00 ▲(26.13% Upside)

Neurones' strong financial performance is the primary driver of its overall score, reflecting consistent growth and solid profitability. The technical analysis indicates a bearish trend, which slightly offsets the financial strengths. The valuation is reasonable, supported by a decent dividend yield. The lack of recent earnings call data and corporate events does not impact the score.

Neurones Business Overview & Revenue Model

Company Description

Neurones S.A., an information technology (IT) services company, provides infrastructure, application, and consulting services in France and internationally. Its infrastructure services include infrastructure management, clouds, user support, DevOps, cybersecurity, IT service management, information system governance, and automation. The company also provides application services in the areas of SAP integration and outsourcing; mobility, data, IoT, digital, agile, UX/UI, and DevOps; IT consulting for finance, big data, AI and blockchain; content management, business process management, paperless process; and IT training and working with change management. In addition, it offers consulting services, including management and digital transformation, and digital marketing consulting; digital transformation services in the areas of agile/scrum, DevOps, CI/CD, cloud, infrastructure as code, cyber security, analytics, big data, mobility, digital workplace, connected devices, innovations, client experience, UX/UI, and digital marketing, as well as internal process digitization, ECM/BPM, RPA, dematerialization, AI, predictive maintenance, machine learning, and blockchain; and managed services/outsourcing services. The company serves banking/insurance, services/consumer goods, energy/utilities/healthcare, technologies/media/telecoms, industry/public works and civil engineering, and public sector markets. Neurones S.A. was founded in 1984 and is headquartered in Nanterre, France.

How the Company Makes Money

Neurones generates revenue through multiple streams, including service contracts for consulting and implementation projects, recurring revenue from managed services, and software licensing. A significant portion of its earnings comes from long-term partnerships with clients, allowing for ongoing projects and maintenance contracts. Additionally, Neurones benefits from strategic alliances with technology providers, enabling it to deliver integrated solutions and expand its market reach, which further contributes to its revenue growth.

Neurones Financial Statement Overview

Summary

Neurones demonstrates strong financial health with consistent revenue growth, robust profitability, and effective cash flow management. The company maintains a strong balance sheet with low leverage and high equity ratio, supporting sustainable operations and future growth potential.

Income Statement

Neurones exhibits strong and consistent revenue growth, with a 9.33% increase from 2023 to 2024. The company maintains healthy margins, including a gross profit margin of 62.47% and an EBIT margin of 9.61% in 2024. The net profit margin improved to 6.48%, indicating effective cost management and profitability enhancement.

Balance Sheet

The company shows a stable financial position with a low debt-to-equity ratio of 0.11, reflecting prudent leverage management. The equity ratio stands at 52.10%, showcasing robust equity funding. Return on Equity (ROE) is solid at 13.88%, indicating efficient use of shareholder funds.

Cash Flow

Free cash flow grew by 33.82%, underscoring strong cash generation capabilities. The operating cash flow to net income ratio is 1.61, highlighting effective conversion of earnings into cash. However, there is room for improvement in aligning free cash flow more closely with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	832.27M	810.40M	741.17M	665.38M	579.88M	524.49M
Gross Profit	619.18M	388.76M	346.76M	81.64M	69.73M	68.61M
EBITDA	82.28M	85.92M	96.63M	88.72M	76.23M	68.78M
Net Income	50.70M	52.50M	49.41M	44.24M	37.71M	30.92M
Balance Sheet
Total Assets	717.70M	725.69M	674.25M	616.22M	567.82M	549.85M
Cash, Cash Equivalents and Short-Term Investments	288.70M	326.49M	297.76M	272.06M	265.17M	266.60M
Total Debt	41.47M	42.02M	43.98M	35.57M	35.32M	34.18M
Total Liabilities	286.04M	289.52M	266.34M	240.63M	214.90M	190.83M
Stockholders Equity	371.19M	378.10M	354.39M	330.58M	311.56M	322.63M
Cash Flow
Free Cash Flow	76.63M	72.34M	54.09M	44.33M	58.10M	61.80M
Operating Cash Flow	88.22M	84.38M	72.08M	54.94M	64.68M	68.99M
Investing Cash Flow	-18.60M	-19.69M	-21.57M	-12.26M	-10.62M	-8.01M
Financing Cash Flow	-44.37M	-34.48M	-27.06M	-36.08M	-55.42M	-11.05M

Neurones Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.85
• 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:NRO, the sentiment is Negative. The current price of 38.85 is below the 20-day moving average (MA) of 39.68, below the 50-day MA of 40.82, and below the 200-day MA of 44.21, indicating a bearish trend. The MACD of -0.51 indicates Negative momentum. The RSI at 40.14 is Neutral, neither overbought nor oversold. The STOCH value of 41.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:NRO.

Neurones Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUB	75 Outperform	€612.29M	17.55	12.87%	2.75%	1.02%	6.31%
NRO	72 Outperform	€950.04M	18.68	14.08%	3.35%	7.39%	4.58%
ATE	72 Outperform	€2.43B	16.09	6.98%	2.13%	-0.23%	-37.70%
SOP	70 Outperform	€3.02B	10.80	14.39%	3.19%	-4.12%	43.37%
WAVE	65 Neutral	€1.18B	15.53	12.58%	0.97%	34.61%	13.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ATO	48 Neutral	€1.11B	0.64	58.08%	―	-14.60%	―