NorCom Information Technology (NC5A) AI Stock Analysis

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NorCom Information Technology

(XETRA:NC5A)

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Rating:47Neutral

Price Target:EUR 1.00▼(-20.51% Downside)

Action:reiterated

Date:10/29/26

The score is held down primarily by weak financial performance—shrinking revenue, deteriorating profitability (including negative gross profit), and a reduced equity cushion—along with limited valuation support due to losses (negative P/E). Technicals are a relative positive, with the stock trading above key moving averages and constructive momentum, but they do not outweigh the fundamental pressure.

Positive Factors

Moderate LeverageModerate leverage provides some balance-sheet flexibility compared with a heavily indebted structure. This can reduce fixed financial pressure and preserve options for operating investment, although the benefit is limited by NorCom’s weak profitability and declining equity base.

Negative Factors

Sustained Revenue ContractionSeveral years of revenue contraction point to weakening demand, customer traction, or competitive position rather than a temporary earnings fluctuation. A shrinking revenue base limits operating leverage, reduces reinvestment capacity, and makes a return to sustainable profitability more difficult.

NorCom Information Technology (NC5A) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 2.27M
Dividend Yield: ―
Average Volume (3M): 2,358
Price to Earnings (P/E): -1.8
Beta (1Y): 0.51
Revenue Growth: -20.90%
EPS Growth: -130.66%
Country: Germany
Employees: 30
Sector: General
Sector Strength: 55
Industry: Software - Application

NorCom Information Technology Business Overview & Revenue Model

Company Description

NorCom Information Technology GmbH & Co. KGaA develops and implements big data and KI solutions in Germany and internationally. The company offers DaSense, an AI technology platform that can analyze documents and initiate and support workflows; AI ap...

NorCom Information Technology Financial Statement Overview

Summary

Financials appear stressed: multi-year revenue contraction, a shift to negative gross profit in 2025, and sharply wider net losses. Leverage is moderate, but the equity base fell materially by 2025, reducing balance-sheet cushion. Cash flow turned slightly positive in 2025, but free cash flow has been volatile and declined year-over-year, keeping funding risk elevated if losses persist.

Income Statement

18Very Negative

Balance Sheet

42Neutral

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.93M	5.40M	7.78M	9.20M	9.13M	9.55M
Gross Profit	224.62K	-344.45K	3.99M	4.20M	4.17M	587.54K
EBITDA	-671.20K	-1.03M	341.61K	113.96K	-542.00K	97.02K
Net Income	-1.44M	-1.93M	-296.00K	-463.00K	-1.36M	-827.00K
Balance Sheet
Total Assets	4.73M	5.23M	5.89M	6.69M	7.35M	9.40M
Cash, Cash Equivalents and Short-Term Investments	125.10K	160.58K	1.15M	1.26M	1.33M	3.32M
Total Debt	939.41K	1.09M	1.14M	1.37M	1.63M	2.92M
Total Liabilities	3.37M	3.77M	2.50M	3.00M	3.68M	4.36M
Stockholders Equity	1.36M	1.45M	3.40M	3.69M	3.67M	5.03M
Cash Flow
Free Cash Flow	306.40K	164.10K	-619.81K	-285.93K	-771.51K	-216.19K
Operating Cash Flow	306.39K	173.40K	-97.74K	179.83K	-324.64K	266.82K
Investing Cash Flow	-503.36K	-488.22K	-522.08K	-465.76K	-446.87K	-483.00K
Financing Cash Flow	-244.61K	-244.45K	-237.60K	223.14K	-1.22M	-934.02K

NorCom Information Technology Technical Analysis

Technical Analysis SentimentNeutral

Last Price1.26

Price Trends

50DMA1.26Negative

100DMA1.35Negative

200DMA1.43Negative

Market Momentum

MACD-0.01Positive

RSI49.70Neutral

STOCH15.54Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NC5A, the sentiment is Neutral. The current price of 1.26 is below the 20-day moving average (MA) of 1.26, below the 50-day MA of 1.26, and below the 200-day MA of 1.43, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 49.70 is Neutral, neither overbought nor oversold. The STOCH value of 15.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:NC5A.

NorCom Information Technology Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

DE:NC5A against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DE:MBQ	48Neutral	EUR 9.32M	23.60	2.76%	―	-11.34%	―
DE:NC5A	47Neutral	EUR 2.27M	-1.79	-102.27%	―	-20.90%	-130.66%

* General Sector Average

Performance Comparison

DE:NC5A and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:NC5A	NorCom Information Technology	1.26	-0.93	-42.56%
DE:MBQ	MOBOTIX AG	0.71	-0.23	-24.68%
DE:PLEK	plenum AG	2.04	-4.11	-66.83%
DE:S9I	STEMMER IMAGING AG	62.00	3.00	5.08%
DE:TSS	InnoTec TSS AG	6.95	0.59	9.31%
DE:SLSA	Solutiance AG	1.33	-0.23	-14.74%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

NorCom Information Technology AI Stock Analysis