adesso AG (ADN1) AI Stock Analysis

• Market Cap: €650.92M
• Dividend Yield: 0.7%
• Average Volume (3M): 7.36K
• Price to Earnings (P/E): 80.0
• Beta (1Y): 1.23
• Revenue Growth: 14.18%
• EPS Growth: 154.20%
• Country: DE
• Employees: 10,320
• Sector: Technology
• Sector Strength: 66
• Industry: Information Technology Services
• EPS (TTM): 1.25
• Shares Outstanding: 6,522,272
• 10 Day Avg. Volume: 5,469
• 30 Day Avg. Volume: 7,360
• PEG Ratio: 0.52
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €117.20
• Price Target Upside: 16.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

adesso AG's stock is supported by strong financial performance, with significant revenue and cash flow growth, and stable profitability. Technical analysis indicates positive momentum, but the high P/E ratio suggests the stock may be overvalued. Although the dividend yield is low, the company's robust cash flow and liquidity provide a solid foundation for future growth. Investors should be mindful of leverage levels and potential overbought conditions.

Positive Factors

Demand for Services

The robust growth was propelled by a continuous strong demand for adesso's digitalization services and an increase in working days during the third quarter.

Earnings Trajectory

The company projects that the positive earnings trajectory will continue, with an additional working day in the next quarter compared to the same period last year.

Quarterly Performance

In the fourth quarter of 2024, sales increased to a new record level of approximately €336m compared to the previous year.

Sales Growth

Sales grew 14.2% growth, contributing to the overall positive performance of the company.

Negative Factors

Guidance vs. Consensus

The new guidance includes sales and EBITDA figures that are below the consensus expectations for 2025.

Investment Impact

The slightly improved EBITDA margin of 7.6% was impacted by continued high investments from the product business.

adesso AG Business Overview & Revenue Model

Company Description

adesso AG is a prominent IT service provider headquartered in Germany, specializing in consulting and software development. The company operates across various sectors including automotive, banking, healthcare, and insurance, among others. adesso AG’s core offerings include IT consultancy services, custom software development, and digital transformation solutions, which help clients optimize their business processes and enhance their digital capabilities.

How the Company Makes Money

adesso AG generates revenue through a combination of consulting fees, project-based income, and software licensing. The company primarily earns money by providing IT consulting services and developing custom software solutions tailored to the needs of its clients across different industries. Additionally, adesso AG has strategic partnerships with technology vendors and platforms, which enable it to offer integrated solutions and drive further sales. The consultancy and development projects are often long-term engagements, contributing to a stable revenue stream. Moreover, as digital transformation continues to be a priority for businesses, adesso AG benefits from increased demand for its services, further supporting its financial performance.

adesso AG Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.14B	900.25M	678.32M	523.38M	449.70M
	Gross Profit
146.66M	269.51M	206.61M	164.20M	155.70M
	EBIT
15.49M	45.90M	50.01M	37.61M	25.54M
	EBITDA
82.43M	93.32M	102.99M	60.48M	48.33M
	Net Income Common Stockholders
3.21M	28.60M	47.50M	20.95M	17.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
103.01M	93.79M	111.47M	56.06M	46.35M
	Total Assets
785.99M	655.57M	555.71M	372.15M	320.76M
	Total Debt
285.52M	219.56M	197.57M	129.82M	130.12M
	Net Debt
184.75M	128.67M	87.65M	74.77M	83.77M
	Total Liabilities
578.21M	440.38M	363.88M	269.27M	228.28M
	Stockholders Equity
203.00M	210.03M	191.37M	102.34M	92.48M
Cash Flow		Free Cash Flow
42.52M	12.12M	29.55M	54.16M	10.89M
	Operating Cash Flow
76.86M	36.07M	47.91M	64.96M	22.34M
	Investing Cash Flow
-50.78M	-43.50M	-25.87M	-28.47M	-15.41M
	Financing Cash Flow
-15.89M	-10.98M	33.02M	-27.53M	-6.52M

adesso AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ADN1, the sentiment is Positive. The current price of 100.2 is above the 20-day moving average (MA) of 96.02, above the 50-day MA of 93.73, and above the 200-day MA of 83.07, indicating a bullish trend. The MACD of 1.99 indicates Negative momentum. The RSI at 55.08 is Neutral, neither overbought nor oversold. The STOCH value of 59.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:ADN1.

adesso AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BC8	74 Outperform	€4.90B	19.87	13.44%	1.82%	-1.82%	-7.54%
ADN1	66 Neutral	€650.92M	79.99	4.13%	0.70%	14.18%	154.20%
Sector *	60 Neutral	$10.83B	10.47	-6.71%	2.99%	7.73%	-12.97%
EVT	51 Neutral	€1.25B	―	-20.51%	―	1.50%	-127.76%