Theon International Plc (THEON) AI Stock Analysis

• Market Cap: €2.41B
• Dividend Yield: 1.59%
• Average Volume (3M): 269.93K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 1.07
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: NL
• Employees: 633
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): 0.22
• Shares Outstanding: 70,000,000
• 10 Day Avg. Volume: 256,896
• 30 Day Avg. Volume: 269,932
• 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: €33.50
• Price Target Upside: -2.76% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: €29.00 ▼(-15.82% Downside)

Theon International Plc shows strong financial performance with robust revenue growth and profitability. However, technical indicators suggest caution due to bearish trends, and the valuation metrics indicate potential overvaluation. Addressing cash flow challenges and monitoring market trends will be crucial for future performance.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's successful market expansion and product adoption, indicating a strong market position and demand for its offerings.

Profitability Margins

Improved profitability margins suggest effective cost control and operational efficiency, enhancing the company's ability to reinvest in growth and innovation.

Balance Sheet Health

A strong balance sheet with increased equity provides financial stability and flexibility, supporting long-term strategic investments and risk management.

Negative Factors

Cash Flow Variability

Inconsistent cash flow generation can hinder the company's ability to fund operations and growth initiatives, posing a risk to financial sustainability.

Operational Cash Challenges

Fluctuating operational cash flows suggest potential inefficiencies in converting revenue into cash, which could impact the company's liquidity and operational flexibility.

Leverage Management

While leverage management has improved, ongoing vigilance is needed to ensure liabilities do not outweigh assets, which could affect long-term financial health.

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 through the sale of its core products, which include night vision goggles, thermal imaging cameras, and various electro-optical systems. The company operates on a business-to-business (B2B) model, securing contracts with government agencies, military organizations, and commercial entities globally. Key revenue streams include direct sales, long-term contracts, and service agreements for maintenance and support of their products. Additionally, Theon may benefit from partnerships with defense contractors and collaborative projects with other technology firms, which can lead to joint ventures and shared technology developments, further enhancing its earnings potential. The company's focus on research and development also positions it to capitalize on emerging technologies and market trends, contributing to sustained revenue growth.

Theon International Plc Financial Statement Overview

Summary

Theon International Plc has demonstrated strong revenue growth and improved profitability margins. The balance sheet is robust with a healthy equity position and improved leverage management. However, cash flow variability, particularly in operational cash generation, poses a challenge that needs addressing.

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	383.71M	352.36M	218.72M	142.89M	80.56M	54.22M
Gross Profit	122.69M	109.21M	70.21M	50.21M	32.81M	16.91M
EBITDA	98.48M	93.56M	56.23M	40.72M	26.10M	12.44M
Net Income	72.79M	67.42M	36.10M	30.00M	19.06M	7.43M
Balance Sheet
Total Assets	424.57M	392.44M	210.52M	157.69M	71.94M	46.15M
Cash, Cash Equivalents and Short-Term Investments	132.22M	118.53M	65.80M	24.50M	26.49M	14.97M
Total Debt	93.64M	76.09M	51.88M	34.96M	18.28M	20.34M
Total Liabilities	177.93M	156.23M	133.16M	93.24M	38.09M	31.52M
Stockholders Equity	234.72M	224.37M	77.36M	64.26M	33.85M	14.62M
Cash Flow
Free Cash Flow	53.97M	-36.84M	27.69M	-10.77M	13.83M	7.48M
Operating Cash Flow	46.34M	-26.12M	35.26M	-6.94M	18.43M	8.40M
Investing Cash Flow	21.53M	-35.67M	213.15K	-11.51M	-4.19M	-834.30K
Financing Cash Flow	-31.69M	83.91M	6.37M	16.40M	-3.31M	-55.71K

Theon International Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:THEON, the sentiment is Positive. The current price of 34.45 is above the 20-day moving average (MA) of 32.12, above the 50-day MA of 27.84, and above the 200-day MA of 24.46, indicating a bullish trend. The MACD of 2.33 indicates Negative momentum. The RSI at 64.24 is Neutral, neither overbought nor oversold. The STOCH value of 80.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:THEON.

Theon International Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THEON	72 Outperform	€2.41B	33.13	―	1.59%	―	―
TWEKA	71 Outperform	€1.47B	23.11	7.75%	4.08%	-3.59%	-46.68%
NEDAP	67 Neutral	€614.27M	29.36	29.06%	3.38%	4.11%	22.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TOM2	55 Neutral	$638.37M	―	-23.52%	―	-1.63%	-18.80%
MTRK	51 Neutral	€192.52M	―	―	―	-7.94%	7.30%
CMCOM	44 Neutral	€141.13M	―	-57.80%	―	0.36%	34.49%