TKH Group N.V. (TWEKA) AI Stock Analysis

• Market Cap: €1.51B
• Dividend Yield: 4.08%
• Average Volume (3M): 123.45K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.93
• Revenue Growth: -3.59%
• EPS Growth: -46.68%
• Country: NL
• Employees: 5,834
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.89
• Shares Outstanding: 42,198,430
• 10 Day Avg. Volume: 243,439
• 30 Day Avg. Volume: 123,446
• PEG Ratio: -0.35
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 13.90
• 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: €43.00
• Price Target Upside: 14.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: €40.00 ▲(6.55% Upside)

The overall stock score reflects a solid financial performance with operational efficiency and moderate leverage. Technical analysis indicates short-term bullish momentum, though caution is advised due to the RSI nearing overbought levels. Valuation suggests the stock might be overvalued, but the attractive dividend yield provides a counterbalance.

TKH Group N.V. Business Overview & Revenue Model

Company Description

TKH Group N.V. develops and delivers smart vision, smart manufacturing, and smart connectivity systems in the Netherlands, Europe, Asia, North America, and internationally. Its Smart Vision Systems segment provides 2D and 3D machine vision and security vision technologies used in quality, inspection, operation, and object monitoring, as well as combined advanced communication technologies that enable customers to manage and control the urban environment by enhancing sustainability, safety, and security in various markets, such as infrastructure, parking, and building security. This segment serves various industries, such as consumer electronics, factory automation, logistics, wood, intelligent transport systems, medical, and life sciences. The company's Smart Manufacturing Systems segment supplies systems engineering and assembly, and control and analysis software, as well as connectivity and vision technologies; and care solutions by providing medicine distribution machines. This segment serves car and truck tire production, and factory automation industries. Its Smart Connectivity Systems segment develops connectivity systems for on-shore and off-shore energy distribution; fiber optic connectivity systems for data and communication networks; and cable systems for various industrial automation applications, such as the industrial, marine and offshore, and medical sectors, as well as provides contactless energy and data distribution comprising hardware components and intelligent software for airfield ground lighting systems. The company was formerly known as NV Twentsche Kabel Holding and changed its name to TKH Group N.V. in 2005. TKH Group N.V. was incorporated in 1980 and is based in Haaksbergen, the Netherlands.

How the Company Makes Money

TKH Group generates revenue primarily through the sale of its high-tech products and systems in its various sectors. The company has multiple key revenue streams, including the sale of telecommunication infrastructure products, security systems, and automation solutions. Additionally, the company benefits from recurring revenue through service contracts and maintenance agreements associated with its products. Significant partnerships with telecommunication providers and industrial clients further bolster its revenue, allowing TKH Group to leverage its technology solutions in large-scale projects across Europe and beyond. The focus on innovation and integration of advanced technologies also positions TKH Group to capitalize on emerging trends in digitalization and smart infrastructure, contributing positively to its earnings.

TKH Group N.V. Financial Statement Overview

Summary

TKH Group N.V. demonstrates a solid financial position with strengths in operational efficiency and moderate leverage. Despite some inconsistencies in revenue growth and net margins, the company maintains a healthy equity ratio and cash flow generation, suggesting stability with some areas for improvement.

Income Statement

The company shows a stable gross profit margin with an increase in TTM (Trailing-Twelve-Months). However, the net profit margin has declined in the most recent year. Revenue growth is inconsistent, with a decline in the most recent period. The EBIT and EBITDA margins are strong, indicating operational efficiency.

Balance Sheet

The debt-to-equity ratio indicates moderate leverage, suggesting manageable financial risk. Return on Equity (ROE) has decreased slightly, reflecting lower profitability from equity. The equity ratio demonstrates a healthy proportion of equity financing relative to total assets.

Cash Flow

The company has shown improvements in free cash flow, although it was negative in the prior year. The operating cash flow to net income ratio is healthy, indicating good cash conversion from earnings. However, free cash flow to net income is less consistent, reflecting volatility in capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.85B	1.82B	1.52B	1.29B
Gross Profit	888.51M	368.59M	352.09M	287.45M	202.93M
EBITDA	200.50M	301.89M	259.19M	205.43M	149.86M
Net Income	99.56M	165.70M	137.08M	95.21M	47.52M
Balance Sheet
Total Assets	2.21B	2.13B	2.07B	1.70B	1.57B
Cash, Cash Equivalents and Short-Term Investments	125.63M	93.70M	184.66M	100.14M	121.64M
Total Debt	710.66M	648.39M	573.43M	381.69M	467.22M
Total Liabilities	1.33B	1.29B	1.28B	975.47M	904.05M
Stockholders Equity	882.98M	835.57M	786.77M	721.93M	661.82M
Cash Flow
Free Cash Flow	95.50M	-78.01M	-21.89M	124.80M	117.17M
Operating Cash Flow	196.21M	152.88M	116.36M	199.05M	187.83M
Investing Cash Flow	-138.83M	-170.40M	-124.39M	-71.58M	-44.17M
Financing Cash Flow	-62.95M	10.78M	20.48M	-128.45M	-150.69M

TKH Group N.V. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:TWEKA, the sentiment is Positive. The current price of 37.54 is above the 20-day moving average (MA) of 34.62, above the 50-day MA of 34.84, and above the 200-day MA of 35.41, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 72.76 is Negative, neither overbought nor oversold. The STOCH value of 89.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:TWEKA.

TKH Group N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THEON	72 Outperform	€2.40B	32.98	30.05%	1.59%	―	―
TWEKA	71 Outperform	€1.51B	23.09	7.75%	4.08%	-3.59%	-46.68%
ASM	67 Neutral	€26.89B	48.30	14.77%	0.54%	25.46%	-4.36%
NEDAP	67 Neutral	€614.92M	28.95	22.13%	3.38%	4.11%	22.38%
BESI	62 Neutral	€10.78B	59.81	47.54%	1.63%	3.75%	0.10%
TOM2	55 Neutral	€652.72M	-22.04	-25.67%	―	-1.63%	-18.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%