INDUS Holding (INH) AI Stock Analysis

• Market Cap: €590.82M
• Dividend Yield: 5.35%
• Average Volume (3M): 24.16K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.26
• Revenue Growth: -1.04%
• EPS Growth: -19.86%
• Country: DE
• Employees: 8,054
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.50
• Shares Outstanding: 25,800,000
• 10 Day Avg. Volume: 28,257
• 30 Day Avg. Volume: 24,158
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €33.33
• Price Target Upside: 50.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: €24.50 ▲(10.86% Upside)

INDUS Holding's strong revenue growth and stable operational margins are significant positives, although challenges with declining gross profit margins and cash flow management need addressing. The stock's valuation is attractive with a reasonable P/E ratio and high dividend yield. Technical indicators suggest neutral momentum, supporting a balanced outlook.

INDUS Holding Business Overview & Revenue Model

Company Description

INDUS Holding AG is a private equity firm specializing in mergers and acquisitions and corporate spin-offs. The firm does not invest in retail and service companies, pure trading or consumer goods businesses, companies with significant dependencies on individual business partners, start-ups, turnarounds, mature businesses, and companies undergoing restructuring. The firm typically invests in middle market and mature companies. It primarily makes long-term investments in medium-sized manufacturing companies in energy and environmental technology; infrastructure and logistics technology, intelligent logistic infrastructure; automation, measurement and control technology; medical engineering; life science; construction and safety technology; industry; digitalization; green tech; medical equipment for the ageing society; innovative construction technology; and public and private security sectors. The firm acquires small and medium-sized companies based in Germany, Switzerland, Austria, and the German-speaking regions of Europe. It typically invests in companies with annual sales between €20 million ($22.05 million) and €100 million ($110.28 million), EBIT between €2 million ($2.66 million) and €10 million ($13.28 million), equity ratio above 30 percent, and a double digit operating margin. It prefers to invest in companies with low level/no liabilities to banks. The firm seeks to take a majority stake in its portfolio companies initially and building it up to 100 percent. It prefers to acquire mainly owner-managed companies. It also seeks second-level acquisition opportunities. The firm invests through its balance sheet. INDUS Holding AG was founded in 1989 and is based in Bergisch Gladbach, Germany.

How the Company Makes Money

INDUS Holding generates revenue through a multi-faceted business model that includes the sale of industrial products, services, and solutions across its diverse subsidiaries. Key revenue streams arise from the manufacturing and distribution of precision tools and components primarily for the automotive and mechanical engineering sectors. Additionally, the company earns income through long-term contracts with clients, which provide a steady stream of revenue. Strategic partnerships with leading companies in related industries further enhance its market position and contribute to earnings. The company's focus on innovation and quality also allows it to command premium pricing for its specialized products, thereby increasing profit margins.

INDUS Holding Financial Statement Overview

Summary

INDUS Holding demonstrates strong revenue growth and stable operational margins, but faces challenges with declining gross profit margins and cash flow management. The balance sheet shows a balanced leverage position, though increasing debt levels warrant attention. Overall, the company is on a growth trajectory but needs to address cost management and cash flow efficiency to enhance financial stability.

Income Statement

INDUS Holding shows a strong revenue growth rate of 30.7% in the TTM, indicating robust top-line expansion. However, the gross profit margin has decreased from 55.8% to 46.9%, suggesting rising costs or pricing pressures. The net profit margin is relatively low at 3.5%, but it has improved slightly from the previous year. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is close to 1, indicating a balanced approach to leveraging, but it has increased slightly, suggesting rising debt levels. Return on equity is moderate at 8.5%, showing decent profitability relative to shareholder equity. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

Free cash flow has decreased by 21.4% in the TTM, indicating potential cash management challenges. The operating cash flow to net income ratio is low at 0.24, suggesting that cash generation from operations is not fully aligned with reported profits. However, the free cash flow to net income ratio remains healthy at 0.53, indicating some level of cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.72B	1.81B	1.80B	1.74B	1.56B
Gross Profit	963.67M	961.49M	989.30M	965.44M	953.58M	847.27M
EBITDA	208.41M	215.16M	250.15M	218.10M	245.00M	120.17M
Net Income	50.16M	53.71M	55.44M	72.89M	46.81M	-26.90M
Balance Sheet
Total Assets	1.83B	1.81B	1.93B	1.89B	1.86B	1.73B
Cash, Cash Equivalents and Short-Term Investments	111.20M	145.15M	265.84M	127.82M	136.32M	194.70M
Total Debt	746.29M	686.59M	772.01M	721.37M	640.45M	713.61M
Total Liabilities	1.14B	1.11B	1.21B	1.20B	1.07B	1.05B
Stockholders Equity	686.46M	697.54M	717.94M	683.16M	785.63M	675.31M
Cash Flow
Free Cash Flow	48.10M	92.78M	155.71M	61.80M	40.98M	102.70M
Operating Cash Flow	103.84M	143.68M	217.66M	116.34M	116.57M	155.19M
Investing Cash Flow	-70.48M	-65.37M	-50.08M	-94.44M	-130.36M	-52.34M
Financing Cash Flow	-41.55M	-199.88M	-501.00K	55.91M	-44.47M	-42.02M

INDUS Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:INH, the sentiment is Negative. The current price of 22.1 is below the 20-day moving average (MA) of 22.58, below the 50-day MA of 22.39, and below the 200-day MA of 22.26, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 43.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:INH.

INDUS Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBB	―	€835.16M	20.17	7.18%	1.69%	15.33%	111.97%
INH	―	€590.82M	11.53	7.27%	5.35%	-1.04%	-19.86%
STO3	―	€694.43M	20.71	4.63%	2.79%	-3.84%	-49.20%
SHF	―	€542.57M	25.80	16.15%	―	24.02%	74.15%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TTK	―	€291.97M	-5.11	-10.51%	13.48%	-8.59%	-2639.62%
IUR	―	€39.23M	―	-21.95%	―	―	―