Theon International Plc (THEON) AI Stock Analysis

• Market Cap: €2.32B
• Dividend Yield: 1.91%
• Average Volume (3M): 302.58K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 1.09
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: NL
• Employees: 633
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): 0.46
• Shares Outstanding: 78,624,640
• 10 Day Avg. Volume: 338,080
• 30 Day Avg. Volume: 302,585
• PEG Ratio: 0.21
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 2.47
• P/FCF Ratio: -23.62
• 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: €32.58
• Price Target Upside: 14.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €33.00 ▲(15.59% Upside)

Theon International Plc's strong financial performance, particularly in revenue growth and profitability, is a key strength. However, technical indicators suggest a neutral market sentiment, and valuation metrics indicate the stock is fairly valued. The lack of significant earnings call insights or corporate events leaves the focus on financial and technical factors.

Positive Factors

Robust Revenue Growth

A multi-year revenue increase of this scale indicates durable market demand for Theon’s electro-optical systems and successful scaling of sales operations. Improved gross margins alongside top-line growth suggest operating leverage, helping sustain profitability as volume expands and supporting reinvestment in product development.

Stronger Balance Sheet

A substantial rise in equity and improved leverage provide long-term financial flexibility for bidding on large defense contracts, funding R&D, and absorbing procurement timing variability. A strong equity base reduces refinancing risk and supports sustained investment in capabilities and production capacity.

After-sales / Contracted Revenue Mix

A business model combining upfront product sales with repeatable after-sales support and long-term program contracts builds recurring revenue, strengthens customer stickiness, and raises lifetime margins. Lifecycle services create durable cash flows and higher switching costs for institutional customers.

Negative Factors

Weak Operational Cash Generation

Volatile and recently negative free cash flow can force reliance on external financing for working capital and growth capex. Over the medium term this may constrain the company’s ability to self-fund R&D, inventory for large procurements, or sustain dividend and buyback policies without raising cost of capital.

Procurement Cycle Dependence

Heavy dependence on government tenders and procurement timing creates structural revenue volatility and visibility gaps. Winning and timing of large contracts can swing multi-quarter revenues, complicating cash planning and increasing the risk that gaps between programs pressure margins or require short-term financing.

Margin Sustainability Risk as Scale Increases

While margins have improved, scaling production and entering new contract types may introduce cost inflation, integration expenses, and competitive pricing pressure. Sustaining current margins requires disciplined cost control and execution; failure to do so could erode profitability as volumes grow.

Theon International Plc Business Overview & Revenue Model

Company Description

Theon International PLC develops and manufactures customizable night vision, thermal imaging systems and electro-optical ISR systems for military and security applications in Europe and internationally. The company provides night vision monocular and binoculars; family of night vision sights; clip-on night sights; night driver's viewers; digital day and night cameras, and upgrade kits for armored vehicles; thermal stand-alone and clip-on uncooled sights; and vehicle and platform based thermal imaging systems. It also offers optical and mechanical customized design, ILS, and maintenance services. The company was founded in 1997 and is based in Nicosia, Cyprus. Theon International PLC operates as a subsidiary of Venetus Limited.

How the Company Makes Money

Theon International generates revenue primarily through the sale of its advanced optical products, which include night vision goggles, thermal imaging cameras, and other imaging systems. The company operates on a business-to-business (B2B) model, supplying its products to government agencies, military organizations, and private sector companies involved in security and surveillance. Key revenue streams include direct sales of equipment, as well as long-term contracts and partnerships with defense ministries and law enforcement agencies. Additionally, Theon International may offer maintenance, repair, and upgrade services for its products, contributing to recurring revenue. Strategic partnerships with other defense contractors and participation in international defense expos also play a significant role in enhancing its market presence and driving sales.

Theon International Plc Financial Statement Overview

Summary

Theon International Plc has demonstrated strong revenue growth and improved profitability margins, supported by a healthy balance sheet. However, challenges in cash flow generation from operations need attention to ensure long-term sustainability.

Income Statement

Theon International Plc has demonstrated strong revenue growth, with a notable increase from $37.5 million in 2019 to $352.4 million in 2024. The gross profit margin has improved significantly, indicating efficient cost management. Net profit margin and EBIT margin have also shown positive trends, reflecting enhanced profitability. However, the company should remain vigilant about maintaining these margins as it scales.

Balance Sheet

The balance sheet reflects a healthy equity position with a substantial increase in stockholders' equity from $7.1 million in 2019 to $224.4 million in 2024. The debt-to-equity ratio has improved, suggesting better leverage management. The equity ratio indicates a strong asset base supported by equity. However, the company should continue to manage its liabilities prudently to sustain financial stability.

Cash Flow

The cash flow statement shows variability in free cash flow, with negative free cash flow in recent years. Operating cash flow has fluctuated, indicating potential challenges in cash generation from operations. The company has managed to secure financing effectively, but it should focus on improving operational cash flows to ensure long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	409.03M	352.36M	218.72M	142.89M	80.56M	54.22M
Gross Profit	133.00M	109.21M	70.21M	50.21M	32.81M	16.91M
EBITDA	106.36M	93.56M	56.23M	40.72M	26.10M	12.44M
Net Income	77.84M	67.42M	36.10M	30.00M	19.06M	7.43M
Balance Sheet
Total Assets	437.71M	392.44M	210.52M	157.69M	71.94M	46.15M
Cash, Cash Equivalents and Short-Term Investments	121.14M	118.53M	65.80M	24.50M	26.49M	14.97M
Total Debt	99.72M	76.09M	51.88M	34.96M	18.28M	20.34M
Total Liabilities	183.77M	156.23M	133.16M	93.24M	38.09M	31.52M
Stockholders Equity	241.92M	224.37M	77.36M	64.26M	33.85M	14.62M
Cash Flow
Free Cash Flow	44.45M	-36.84M	27.69M	-10.77M	13.83M	7.48M
Operating Cash Flow	38.45M	-26.12M	35.26M	-6.94M	18.43M	8.40M
Investing Cash Flow	22.54M	-35.67M	213.15K	-11.51M	-4.19M	-834.30K
Financing Cash Flow	-25.95M	83.91M	6.37M	16.40M	-3.31M	-55.71K

Theon International Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:THEON, the sentiment is Negative. The current price of 28.55 is below the 20-day moving average (MA) of 31.29, below the 50-day MA of 29.22, and above the 200-day MA of 28.09, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 14.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:THEON.

Theon International Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEDAP	76 Outperform	€566.27M	27.06	29.06%	3.54%	4.11%	22.38%
TWEKA	71 Outperform	€1.57B	24.76	7.75%	4.11%	-3.59%	-46.68%
THEON	69 Neutral	€2.32B	27.64	―	1.91%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TOM2	57 Neutral	€656.39M	-101.56	-12.26%	―	-1.70%	24.14%
MTRK	47 Neutral	€186.57M	-14.53	―	―	-7.94%	7.30%
CMCOM	46 Neutral	€144.96M	-10.95	-57.80%	―	0.36%	34.49%