Flow Traders (FLOW) AI Stock Analysis

• Market Cap: €1.14B
• Dividend Yield: 1.7%
• Average Volume (3M): 175.49K
• Price to Earnings (P/E): 7.2
• Beta (1Y): -0.13
• Revenue Growth: 38.76%
• EPS Growth: 341.16%
• Country: NL
• Employees: 619
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Capital Markets
• EPS (TTM): 1.47
• Shares Outstanding: 45,671,646
• 10 Day Avg. Volume: 111,978
• 30 Day Avg. Volume: 175,488
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• 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: €25.00
• Price Target Upside: -6.65% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ―

Flow Traders demonstrates strong financial stability with high profitability margins and a low debt level, contributing significantly to its score. Despite facing revenue and operating cash flow challenges, its valuation is attractive due to a low P/E ratio and reasonable dividend yield. Technical indicators suggest a potential short-term caution, but the long-term outlook appears positive.

Flow Traders Business Overview & Revenue Model

Company Description

Flow Traders (FLOW) is a leading global technology-enabled liquidity provider specializing in exchange-traded products (ETPs). Headquartered in Amsterdam, the Netherlands, Flow Traders operates across various financial markets, offering liquidity solutions for a wide range of asset classes, including equities, bonds, commodities, and cryptocurrencies. The company's robust technology infrastructure and sophisticated trading strategies enable it to efficiently facilitate trading and enhance market liquidity, serving clients worldwide.

How the Company Makes Money

Flow Traders makes money primarily through the bid-ask spread by providing liquidity in financial markets. The company employs advanced trading algorithms and technology to facilitate high-frequency trading, enabling it to efficiently manage large volumes of trades with minimal risk. By acting as a market maker, Flow Traders buys and sells financial instruments, capturing the spread between the buying and selling prices. Key revenue streams include trading profits from diverse asset classes such as equities, fixed income, commodities, and digital assets. The company's earnings are influenced by market volatility and trading volumes, which can impact the bid-ask spreads and the frequency of trades. Additionally, Flow Traders leverages strategic partnerships with exchanges and financial institutions to enhance its market presence and optimize trading operations.

Flow Traders Financial Statement Overview

Summary

Flow Traders has shown resilience in maintaining high profitability margins with strong equity and low debt levels. While revenue and operating cash flow have faced challenges, improvements in net income and strong free cash flow indicate potential for recovery and growth. The company should focus on enhancing operational efficiency to sustain long-term growth.

Income Statement

Flow Traders has demonstrated moderate revenue growth with a recent decline in Total Revenue from previous years. The Gross Profit Margin remained stable at 100%, indicating strong profitability in their operations. However, the absence of EBIT and EBITDA in the most recent period suggests a potential concern for operating efficiency. Net Profit Margin has improved significantly, reflecting better net income performance.

Balance Sheet

The company exhibits a strong equity position with no total debt, resulting in a very low debt-to-equity ratio. The Return on Equity increased, suggesting efficient use of shareholders' equity. The equity ratio remains healthy, indicating strong financial stability and a low risk of financial distress.

Cash Flow

Flow Traders reported a decline in operating cash flow, but the Free Cash Flow remains positive, indicating effective capital expenditure management. The ratios of Operating Cash Flow and Free Cash Flow to Net Income show a solid cash generation from operations, but the declining trend in operating cash flow is a concern.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Flow Traders Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:FLOW, the sentiment is Negative. The current price of 26.78 is below the 20-day moving average (MA) of 27.30, below the 50-day MA of 28.27, and above the 200-day MA of 25.29, indicating a neutral trend. The MACD of -0.41 indicates Positive momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 20.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:FLOW.

Flow Traders Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABN	77 Outperform	€20.78B	9.03	10.26%	5.73%	-4.58%	-16.15%
NN	73 Outperform	€15.02B	10.43	7.69%	3.65%	-5.38%	38.01%
FLOW	72 Outperform	€1.14B	7.19	23.96%	1.70%	38.76%	341.16%
INGA	70 Outperform	€60.04B	10.21	11.97%	6.06%	0.34%	-5.20%
Sector *	70 Neutral	€16.09B	9.76	13.40%	4.09%	30.06%	32.03%
ALLFG	65 Neutral	€4.29B	―	-7.67%	1.86%	15.96%	-303.47%
AGN	61 Neutral	€9.68B	14.82	9.26%	5.55%	-5.08%	―