Asseco South Eastern Europe S.A. (ASE) AI Stock Analysis

• Market Cap: zł3.41B
• Dividend Yield: 2.66%
• Average Volume (3M): 3.41K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.40
• Revenue Growth: 7.18%
• EPS Growth: -2.62%
• Country: PL
• Employees: 4,181
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.06
• Shares Outstanding: 51,894,253
• 10 Day Avg. Volume: 3,211
• 30 Day Avg. Volume: 3,409
• PEG Ratio: -24.63
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 24.09
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 14.64
• Revenue Forecast (FY): zł6.91B

• Rating: 73 Outperform
• Price Target: zł75.00 ▲(7.45% Upside)

Asseco South Eastern Europe S.A. scores well due to its strong financial performance, characterized by robust revenue growth and profitability. The stock's valuation is fair, with a reasonable P/E ratio and a good dividend yield. However, technical indicators suggest potential bearish momentum, which slightly offsets the positive financial outlook.

Asseco South Eastern Europe S.A. Business Overview & Revenue Model

Company Description

Asseco South Eastern Europe S.A. (ASE) is a leading IT solutions provider in the South Eastern European region, specializing in software development and system integration for various industries, including banking, telecommunications, and public administration. The company offers a wide range of products and services, including enterprise resource planning (ERP) solutions, payment systems, and customized software development, aimed at enhancing operational efficiency and digital transformation for its clients.

How the Company Makes Money

Asseco South Eastern Europe generates revenue primarily through the sale of software licenses and the provision of IT services, which include consulting, implementation, and ongoing support. Its key revenue streams consist of subscription fees from its software offerings, project-based income from custom development services, and maintenance contracts for existing systems. Significant partnerships with major financial institutions and telecommunications companies help drive sales, while the increasing demand for digital solutions and the expansion of technology infrastructure in the region further contribute to its earnings.

Asseco South Eastern Europe S.A. Financial Statement Overview

Summary

Asseco South Eastern Europe S.A. shows strong financial performance with robust revenue growth and profitability. The balance sheet is stable with low leverage, and cash flow generation is strong. Minor concerns include declining net profit margins and cash flow ratios, but overall financial health remains solid.

Income Statement

Asseco South Eastern Europe S.A. demonstrates strong revenue growth with a TTM growth rate of 1.65%, indicating a positive trajectory. The company maintains healthy profit margins, with a gross profit margin of 26.19% and a net profit margin of 10.75% for the TTM. However, there is a slight decline in net profit margin compared to the previous year, which could be a point of concern if the trend continues.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.24, suggesting prudent financial management. The return on equity is strong at 18.36%, indicating efficient use of equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis shows robust free cash flow growth of 19.35% in the TTM, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is 0.40, indicating good cash conversion. However, the free cash flow to net income ratio has decreased compared to previous years, which could impact future liquidity if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.77B	1.71B	1.64B	1.57B	1.15B	1.03B
Gross Profit	463.71M	448.52M	431.01M	393.17M	316.61M	262.52M
EBITDA	370.37M	368.49M	353.02M	335.86M	274.74M	223.03M
Net Income	190.31M	199.22M	200.36M	187.83M	149.24M	115.99M
Balance Sheet
Total Assets	2.31B	2.31B	2.12B	1.87B	1.52B	1.38B
Cash, Cash Equivalents and Short-Term Investments	293.44M	275.23M	314.23M	298.23M	230.94M	248.79M
Total Debt	240.70M	246.01M	153.43M	160.21M	139.90M	118.13M
Total Liabilities	1.30B	1.23B	992.50M	749.82M	546.17M	468.02M
Stockholders Equity	1.00B	1.08B	1.12B	1.11B	967.53M	910.61M
Cash Flow
Free Cash Flow	202.69M	105.54M	247.80M	181.43M	194.84M	169.06M
Operating Cash Flow	304.64M	194.69M	309.61M	240.58M	234.84M	204.62M
Investing Cash Flow	-161.81M	-158.47M	-119.96M	-96.45M	-174.81M	-52.37M
Financing Cash Flow	-49.40M	-83.64M	-133.21M	-75.16M	-82.52M	-99.28M

Asseco South Eastern Europe S.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:ASE, the sentiment is Negative. The current price of 69.8 is above the 20-day moving average (MA) of 66.34, above the 50-day MA of 67.75, and above the 200-day MA of 65.79, indicating a bearish trend. The MACD of -0.74 indicates Negative momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 39.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PL:ASE.

Asseco South Eastern Europe S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASE	73 Outperform	zł3.41B	17.80	17.83%	2.66%	7.18%	-2.62%
ACP	65 Neutral	zł15.33B	22.22	10.33%	2.13%	5.93%	20.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
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