Theon International Plc (THEON) AI Stock Analysis

• Market Cap: €1.73B
• Dividend Yield: 2.21%
• Average Volume (3M): 216.63K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.92
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: NL
• Employees: 633
• Sector: Technology
• Sector Strength: 86
• Industry: Aerospace & Defense
• EPS (TTM): 0.25
• Shares Outstanding: 70,000,000
• 10 Day Avg. Volume: 241,058
• 30 Day Avg. Volume: 216,629
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: €24.00
• Price Target Upside: -2.83% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: €25.00 ▲(1.21% Upside)

Theon International Plc's strong financial performance, particularly in revenue and profitability growth, is a significant positive factor. However, bearish technical indicators and moderate valuation metrics weigh on the overall score. Addressing cash flow challenges and improving market momentum could enhance the stock's attractiveness.

Positive Factors

Earnings Performance

Earnings per share increased by 63%, indicating improved profitability.

Order Book Strength

90% of the sales guidance for FY2025 is already covered by the current order book, suggesting strong future sales potential.

Revenue Growth

Theon International's revenues increased by 61% to €352.4m, showing significant growth.

Negative Factors

Net Working Capital

A significant negative factor was a 144% increase in net working capital year-on-year, mostly related to receivables.

Share Price Impact

In the short term, the accelerated bookbuilding (ABB) is likely to lead to a lower share price.

Theon International Plc Business Overview & Revenue Model

Company Description

Theon International Plc (THEON) is a leading provider of advanced imaging and optical systems, primarily catering to the defense, security, and aerospace sectors. The company specializes in the development, manufacturing, and distribution of high-performance night vision, thermal imaging, and electro-optical devices. With a strong focus on innovation and technology, Theon International strives to enhance situational awareness and operational effectiveness for its clients worldwide.

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 shown impressive growth in revenue and profitability, supported by a strong balance sheet. However, cash flow challenges, particularly in operational cash generation, need to be addressed to maintain growth.

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	401.36M	352.36M	218.72M	142.89M	80.56M	54.22M
Gross Profit	123.94M	109.21M	70.21M	50.21M	32.81M	16.91M
EBITDA	85.29M	93.56M	56.23M	40.72M	26.70M	12.44M
Net Income	82.74M	67.42M	36.10M	30.00M	19.06M	7.43M
Balance Sheet
Total Assets	323.12M	392.44M	210.52M	157.69M	71.94M	46.15M
Cash, Cash Equivalents and Short-Term Investments	112.83M	118.53M	65.80M	24.50M	26.49M	14.97M
Total Debt	64.78M	76.09M	51.88M	34.31M	18.28M	20.34M
Total Liabilities	127.46M	156.23M	133.16M	93.24M	37.71M	31.52M
Stockholders Equity	195.66M	224.37M	77.36M	64.26M	33.85M	14.62M
Cash Flow
Free Cash Flow	-40.47M	-36.84M	27.69M	-10.77M	13.83M	7.48M
Operating Cash Flow	-36.36M	-26.12M	35.26M	-6.94M	18.43M	8.40M
Investing Cash Flow	-59.44M	-35.67M	213.15K	-11.51M	-4.19M	-834.30K
Financing Cash Flow	194.69M	83.91M	6.37M	16.40M	-2.85M	-55.71K

Theon International Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 24.7 is below the 20-day moving average (MA) of 25.06, below the 50-day MA of 28.09, and above the 200-day MA of 21.58, indicating a neutral trend. The MACD of -0.92 indicates Negative momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 62.44 is Neutral, 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
THEON	64 Neutral	€1.73B	23.98		2.21%	―	―
Sector *	61 Neutral	$36.05B	6.66	-10.10%	1.86%	8.68%	-8.81%
TMOAF	―	$712.10M	―	-23.52%	―	―	―
0NNU	―	€594.81M	28.58	29.06%	3.50%	―	―
0NO1	―	€1.43B	21.94	7.75%	―	―	―
2DS	―	€150.61M	―	-57.80%	―	―	―
MTRK	47 Neutral	€196.07M	―		―	-7.94%	7.30%