Fabasoft AG (FAA) AI Stock Analysis

• Market Cap: $185.35M
• Dividend Yield: 0.59%
• Average Volume (3M): 5.58K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.59
• Revenue Growth: 7.24%
• EPS Growth: 8.37%
• Country: DE
• Employees: 501
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.15
• Shares Outstanding: 11,000,000
• 10 Day Avg. Volume: 7,011
• 30 Day Avg. Volume: 5,584
• 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: 0.84
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 3.49
• Enterprise Value/Ebitda: 7.19
• 1Y Price Target: $30.00
• Price Target Upside: 80.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: €18.00 ▲(8.43% Upside)

Fabasoft AG's strong financial performance is the most significant factor, driven by robust revenue growth and efficient operations. The technical analysis indicates a neutral market position, while the valuation suggests the stock is fairly priced. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The impressive revenue growth rate suggests a strong market position and increasing demand for Fabasoft's products, indicating potential for sustained business expansion.

Balance Sheet Health

A low debt-to-equity ratio highlights Fabasoft's conservative financial management, reducing risk and enhancing its ability to invest in growth opportunities.

Cash Generation Ability

Strong cash generation supports Fabasoft's capacity to fund operations and growth initiatives without relying heavily on external financing.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth may limit Fabasoft's ability to reinvest in the business, potentially impacting long-term growth and financial flexibility.

Net Profit Margin

A relatively low net profit margin indicates potential inefficiencies in cost management, which could affect profitability and shareholder returns over time.

Equity Ratio

While the equity ratio is solid, increasing equity relative to total assets could enhance financial stability and reduce reliance on debt financing.

Fabasoft AG Business Overview & Revenue Model

Company Description

Fabasoft AG, together with its subsidiaries, manufactures software products, and provides cloud services to public and private sectors in Austria, Germany, Switzerland, and internationally. The company offers Fabasoft eGov-Suite, an electronic records management system for the public sector; Fabasoft Folio, an on-premises workflow and enterprise content management system for organization; Mindbreeze InSpire that provides appliances and cloud services for information insights, knowledge management, and artificial intelligence; Fabasoft Approve for the management of technical data and documents; Fabasoft Business Process Cloud to digitize cross-company business processes; Xpublisher manages standardized contents for automated multi-channel publishing; and Fabasoft Contracts, a cloud-based contract management software, as well as Fabasoft Secomo that enables handling of signing processes and to protect corporate data. It also provides Fabasoft app.telemetry, a tool for monitoring the performance and response times of applications; Fabasoft app.ducx, a use case based development environment for business applications; and Fabasoft app.test, a tool for business applications. The company was founded in 1988 and is headquartered in Linz, Austria.

How the Company Makes Money

Fabasoft AG makes money primarily through the sale of its software solutions and services. The company offers subscription-based pricing models for its cloud services, which provide recurring revenue streams. These services are targeted at both private enterprises and public institutions, providing tools for digital transformation, secure document handling, and process automation. Additional revenue is generated from consulting services, which help clients implement and customize Fabasoft's solutions to fit their specific needs. The company also benefits from partnerships with technology firms and system integrators, which help expand its market reach and enhance its service offerings.

Fabasoft AG Financial Statement Overview

Summary

Fabasoft AG showcases strong financial performance with consistent revenue growth and robust profit margins. The low leverage and solid equity position enhance financial stability. However, attention should be paid to the slight decline in EBIT margin and equity trends.

Income Statement

Fabasoft AG demonstrates strong financial performance with consistent revenue growth, achieving a significant 21.7% increase in the latest year. Gross profit margins are robust at 50.9%, indicating efficient cost management. However, there is a slight decline in EBIT margin from the previous year, suggesting potential challenges in operating efficiency.

Balance Sheet

The balance sheet shows a healthy equity ratio of 36.2%, indicating a solid capital structure. The debt-to-equity ratio is favorable at 0.18, reflecting low leverage and reduced financial risk. However, the declining trend in stockholders' equity over the years could be a concern if not addressed.

Cash Flow

Fabasoft AG maintains strong cash flow with a positive free cash flow growth rate, indicating efficient cash management. The operating cash flow to net income ratio is healthy, demonstrating effective conversion of income into cash. However, the fluctuation in free cash flow suggests potential variability in cash generation.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	87.61M	80.95M	86.84M	69.23M	58.27M	55.09M
Gross Profit	44.55M	32.46M	44.17M	35.26M	31.34M	30.98M
EBITDA	21.64M	21.38M	21.06M	16.80M	17.65M	19.54M
Net Income	9.21M	9.07M	8.80M	6.29M	7.42M	8.82M
Balance Sheet
Total Assets	91.96M	76.33M	93.26M	70.37M	69.70M	76.60M
Cash, Cash Equivalents and Short-Term Investments	32.28M	25.07M	34.28M	26.56M	35.82M	47.42M
Total Debt	5.88M	7.60M	6.07M	7.49M	5.90M	5.42M
Total Liabilities	54.67M	45.69M	57.16M	43.66M	42.45M	37.35M
Stockholders Equity	35.70M	28.00M	33.77M	24.01M	25.39M	37.00M
Cash Flow
Free Cash Flow	5.80M	6.14M	6.59M	2.88M	9.90M	16.48M
Operating Cash Flow	22.49M	19.48M	23.09M	7.03M	16.65M	21.01M
Investing Cash Flow	-16.66M	-13.24M	-16.88M	-4.64M	-7.27M	-4.30M
Financing Cash Flow	3.06M	-7.82M	2.92M	-11.63M	-22.05M	-3.32M

Fabasoft AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FAA, the sentiment is Positive. The current price of 16.6 is above the 20-day moving average (MA) of 15.86, above the 50-day MA of 16.05, and above the 200-day MA of 16.57, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 66.98 is Neutral, neither overbought nor oversold. The STOCH value of 90.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:FAA.

Fabasoft AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAA	72 Outperform	$185.35M	19.78	27.36%	0.59%	7.24%	8.37%
CSH	54 Neutral	€62.26M	-13.13	-13.18%	0.54%	7.67%	-255.16%
PSAN	51 Neutral	€421.64M	2,490.74	0.18%	―	7.04%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%