init innovation in traffic systems (IXX) AI Stock Analysis

• Market Cap: €473.95M
• Dividend Yield: 1.63%
• Average Volume (3M): 8.81K
• Price to Earnings (P/E): 32.5
• Beta (1Y): 0.68
• Revenue Growth: 24.31%
• EPS Growth: -22.27%
• Country: DE
• Employees: 1,255
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.25
• Shares Outstanding: 10,040,000
• 10 Day Avg. Volume: 5,750
• 30 Day Avg. Volume: 8,810
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: €51.00 ▲(4.08% Upside)

The stock's overall score reflects strong technical momentum and solid financial performance, despite a high valuation. The company's ability to generate cash flow and maintain revenue growth is a positive sign, but the high P/E ratio and increasing leverage pose potential risks. Investors should monitor profitability and debt levels closely.

init innovation in traffic systems Business Overview & Revenue Model

Company Description

init innovation in traffic systems SE provides intelligent transportation systems solutions for public transportation worldwide. It develops, produces, integrates, installs, and maintains software and hardware products for transport companies. The company offers planning and dispatching, ticketing and fare management, analyzing and optimizing, and operations control and real-time passenger information, as well as customer support and operation solutions. init innovation in traffic systems SE was founded in 1983 and is based in Karlsruhe, Germany.

How the Company Makes Money

IXX generates revenue through several key streams. The primary source is the sale of its traffic management software and hardware solutions, which are often customized for clients. Additionally, the company earns income from ongoing maintenance, support services, and software licensing agreements. IXX may also engage in consultancy services for urban planning and traffic system optimization, providing expertise that complements its product offerings. Significant partnerships with local governments, municipalities, and transport authorities play a crucial role in securing contracts and expanding its market reach, contributing to its overall earnings.

init innovation in traffic systems Financial Statement Overview

Summary

The company demonstrates solid revenue growth and strong cash flow generation, which are positive indicators of financial health. However, increasing leverage and slightly declining profit margins suggest areas for improvement. The company should focus on maintaining profitability while managing debt levels to ensure long-term stability.

Income Statement

The company shows a consistent revenue growth trend with a TTM growth rate of 2.56%. Gross profit margins have remained stable around 37%, indicating efficient cost management. However, net profit margins have slightly decreased from 5.82% to 4.96% in the TTM, suggesting some pressure on profitability. EBIT and EBITDA margins have also seen a slight decline, which could indicate rising operational costs.

Balance Sheet

The debt-to-equity ratio has increased to 0.80 in the TTM, reflecting higher leverage, which could pose a risk if not managed properly. Return on equity has slightly decreased to 11.32%, indicating a moderate return on shareholders' investments. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

The company has shown a significant improvement in free cash flow growth, with a TTM increase of 526.11%, indicating strong cash generation capabilities. The operating cash flow to net income ratio has improved, suggesting better cash conversion efficiency. However, the free cash flow to net income ratio, while positive, indicates room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	292.95M	265.67M	210.80M	191.25M	176.66M	180.67M
Gross Profit	108.78M	98.41M	80.39M	76.56M	62.67M	62.17M
EBITDA	40.25M	39.08M	32.61M	31.28M	27.39M	28.70M
Net Income	14.52M	15.46M	15.19M	16.52M	12.41M	14.92M
Balance Sheet
Total Assets	311.37M	313.03M	260.48M	245.75M	216.90M	226.65M
Cash, Cash Equivalents and Short-Term Investments	28.24M	23.55M	27.33M	40.08M	28.20M	32.25M
Total Debt	99.42M	98.56M	69.28M	62.54M	44.96M	54.56M
Total Liabilities	187.37M	178.72M	139.91M	129.19M	114.28M	136.12M
Stockholders Equity	124.08M	134.19M	120.16M	116.36M	102.40M	90.33M
Cash Flow
Free Cash Flow	19.47M	4.21M	-4.28M	14.41M	12.33M	17.29M
Operating Cash Flow	36.06M	10.84M	7.98M	24.38M	16.01M	24.44M
Investing Cash Flow	-26.09M	-23.96M	-13.45M	-10.54M	-3.40M	-14.63M
Financing Cash Flow	-4.02M	8.49M	-6.80M	-2.22M	-17.74M	-2.80M

init innovation in traffic systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.00
• 50DMA: Positive
• 100DMA: Positive
• 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:IXX, the sentiment is Positive. The current price of 49 is below the 20-day moving average (MA) of 49.78, above the 50-day MA of 48.50, and above the 200-day MA of 41.10, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 47.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:IXX.

init innovation in traffic systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFT	74 Outperform	€492.30M	12.71	15.59%	2.67%	5.12%	-20.33%
IXX	74 Outperform	€473.95M	32.47	11.87%	1.63%	24.31%	-22.27%
SHF	69 Neutral	€536.75M	25.52	16.15%	―	24.02%	74.15%
D6H	68 Neutral	€529.85M	21.63	15.66%	1.57%	11.88%	-3.36%
A1OS	66 Neutral	€209.24M	12.89	15.12%	3.81%	1.97%	11.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADN1	58 Neutral	€622.14M	50.74	6.72%	0.79%	12.68%	―