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

• Market Cap: €1.48B
• Dividend Yield: 4.11%
• Average Volume (3M): 135.49K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.95
• Revenue Growth: -3.59%
• EPS Growth: -46.68%
• Country: NL
• Employees: 5,834
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 1.38
• Shares Outstanding: 42,198,430
• 10 Day Avg. Volume: 87,228
• 30 Day Avg. Volume: 135,485
• PEG Ratio: -2.97
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 11.91
• 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: €44.00
• Price Target Upside: 18.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.96
• Revenue Forecast (FY): €1.82B

• Rating: 59 Neutral
• Price Target: €39.00 ▲(5.35% Upside)
• Action: Downgraded Date: 03/08/26
• Date: Action: Downgraded 03/08/26

The score is primarily driven by mid-range financial performance: steady revenue but weaker margins/returns and mixed cash-flow consistency. Technical signals are notably soft (below key short-term averages with negative MACD), while valuation is balanced by an attractive dividend yield but constrained by a high P/E.

Positive Factors

Diversified business model

TKH's operations span four distinct segments—Telecom, Building, Industrial and Healthcare—providing exposure to multiple end markets and product cycles. This structural diversification reduces reliance on a single demand driver and supports steadier revenue and cross-selling opportunities over months.

Stable revenue trend

Revenue stability with modest 2025 growth indicates the company can maintain topline in mixed conditions. For the medium term, steady revenue supports predictable operating scale, capacity utilization and planning, helping management focus on margin recovery and targeted investments rather than emergency cuts.

Improving cash generation

A rebound to positive free cash flow after prior negative years shows improved cash conversion or disciplined capex. Sustained FCF enables internal funding of growth, dividends or debt reduction, enhancing financial flexibility and resilience over the next several quarters.

Negative Factors

Declining returns on capital

A sharp fall in ROE signals weakening effectiveness of invested capital and suggests prior high profitability was not sustained. Persistently lower returns constrain reinvestment returns and shareholder value creation, making capital allocation choices more critical for medium-term growth prospects.

Gross margin volatility

Volatile gross margins point to exposure to pricing, input-cost swings or product-mix shifts. Margin unpredictability reduces earnings visibility, complicates multi-quarter planning and can erode competitive pricing power if sustained, weighing on profit stability over coming quarters.

Uneven cash-flow conversion

Inconsistent conversion of earnings into free cash flow increases risk to funding of dividends, capex and debt service. If cash conversion remains uneven, the company may face constrained financial flexibility or need to raise external funds, which can hinder execution of strategic plans over the medium term.

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 through the sale of its high-tech products and solutions across its various sectors. Key revenue streams include the provision of telecom infrastructure and services, which cater to both public and private network operators, as well as the supply of automation technology and systems for industrial applications. Additionally, the healthcare segment contributes significantly to revenue through the development and sale of healthcare technology products aimed at enhancing patient care and operational efficiency in medical facilities. The company also benefits from strategic partnerships with other technology firms, enhancing its market reach and product offerings, as well as from governmental and institutional contracts that provide recurring income.

TKH Group N.V. Financial Statement Overview

Summary

Stable revenue with modest 2025 growth, but profitability and returns have cooled materially since 2023. Gross margin volatility and uneven cash-flow conversion (including prior negative FCF years and FCF below net income in 2024–2025) keep overall financial quality mid-range despite a manageable—though not conservative—balance sheet.

Income Statement

Revenue has been broadly stable with modest growth in 2025 (+3.4%) after a slight decline in 2024. Profitability is positive but has trended down from 2023 highs: net margin fell to ~5.4% in 2025 from ~9.0% in 2023, and operating margin also compressed versus 2022–2023. A key weakness is volatility in gross margin (notably much lower in 2025 vs 2024), suggesting mix/pricing or cost pressure that reduces earnings quality and predictability.

Balance Sheet

Leverage is moderate-to-elevated and fairly steady, with debt running around ~0.75x equity in 2025 (similar to recent years). Equity has gradually grown over time, supporting the balance sheet, but returns have cooled meaningfully: return on equity decreased to ~10.5% in 2025 from ~19.8% in 2023. Overall, the capital structure looks manageable, but the combination of middling leverage and declining returns limits the score.

Cash Flow

Cash generation is currently solid with positive free cash flow in 2024–2025 and a strong rebound from negative free cash flow in 2022–2023, indicating improved conversion and/or lower investment spend. However, cash flow has been uneven over the period, and free cash flow has not consistently covered accounting earnings (free cash flow was below net income in 2024–2025 and negative in 2022–2023). Operating cash flow is positive but not exceptionally strong relative to the broader scale of the business, reinforcing a mixed cash-flow profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.76B	1.71B	1.85B	1.82B	1.52B
Gross Profit	278.31M	888.51M	368.59M	352.09M	287.45M
EBITDA	233.34M	200.50M	301.89M	293.11M	205.43M
Net Income	94.37M	99.56M	165.70M	137.08M	95.21M
Balance Sheet
Total Assets	2.15B	2.21B	2.13B	2.07B	1.70B
Cash, Cash Equivalents and Short-Term Investments	125.33M	125.63M	93.70M	184.66M	100.14M
Total Debt	675.49M	710.66M	648.39M	573.43M	381.69M
Total Liabilities	1.25B	1.33B	1.29B	1.28B	975.47M
Stockholders Equity	899.83M	882.98M	835.57M	786.77M	721.93M
Cash Flow
Free Cash Flow	122.28M	95.50M	-78.01M	-21.89M	124.80M
Operating Cash Flow	192.41M	196.21M	152.88M	116.36M	199.05M
Investing Cash Flow	-74.70M	-138.83M	-170.40M	-124.39M	-71.58M
Financing Cash Flow	-113.27M	-62.95M	10.78M	20.48M	-128.45M

TKH Group N.V. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:TWEKA, the sentiment is Negative. The current price of 37.02 is below the 20-day moving average (MA) of 39.02, below the 50-day MA of 37.99, and below the 200-day MA of 37.12, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 40.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
ASM	78 Outperform	€32.93B	35.05	21.56%	0.58%	19.12%	42.78%
NEDAP	73 Outperform	€531.24M	24.15	29.06%	3.54%	4.11%	22.38%
THEON	69 Neutral	€2.44B	38.63	―	1.91%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TWEKA	59 Neutral	€1.48B	28.59	7.75%	4.11%	-3.59%	-46.68%
BESI	59 Neutral	€12.62B	61.66	35.84%	1.65%	-5.75%	-17.63%
TOM2	54 Neutral	€606.99M	-106.42	-12.26%	―	-1.70%	24.14%