Paragon (PGN) AI Stock Analysis

5 Followers

Paragon

(Frankfurt:PGN)

Select Model

Rating:43Neutral

Price Target:EUR 1.50▲(435.71% Upside)

Action:upgraded

Date:01/23/26

The score is held down primarily by weak financial performance—negative profitability, declining revenue, deteriorating free cash flow, and especially balance-sheet risk from negative equity and high leverage. Technicals provide some support due to positive momentum and price strength versus moving averages, but overbought indicators increase near-term risk. Valuation is also a constraint given the negative P/E and lack of dividend data.

Positive Factors

High gross marginA 45.79% gross margin signals durable product or service-level pricing power and operational efficiency. Over the medium term this margin buffer helps absorb SG&A and R&D spend, supporting the firm's ability to invest in product development and maintain competitive offerings.

Negative Factors

Balance-sheet leverage and negative equityNegative equity and inverted debt-to-equity indicate high leverage and solvency risk that constrain financing options. Over months this elevates refinancing, covenant, and liquidity vulnerability, limiting strategic flexibility and increasing cost or scarcity of capital for investments.

Paragon (PGN) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.23M
Dividend Yield: ―
Average Volume (3M): 4,292
Price to Earnings (P/E): -15.2
Beta (1Y): 0.29
Revenue Growth: -18.30%
EPS Growth: ―
Country: Germany
Employees: 680
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Paragon Business Overview & Revenue Model

Company Description

paragon GmbH & Co. KGaA, established in 1988 and headquartered in Delbrück, Germany, is a company focused on the innovation, manufacturing, and global distribution of advanced solutions for the automotive sector. Their product portfolio includes auto...

How the Company Makes Money

Paragon generates revenue through a combination of service fees, subscription models, and project-based contracts. Key revenue streams include software licensing fees from proprietary applications, ongoing support and maintenance contracts, and consu...

Paragon Financial Statement Overview

Summary

Financial health is weak: revenue declined (-3.4% TTM) and net margin is negative (-4.63%). The balance sheet is the biggest risk with negative equity and very high leverage (debt-to-equity -6.87). Cash generation is also deteriorating (free cash flow growth -44.28% TTM) with low cash conversion (operating cash flow to net income 0.15).

Income Statement

45Neutral

Balance Sheet

30Negative

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Dec 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	118.33M	139.03M	173.71M	164.96M	151.24M	150.49M
Gross Profit	54.18M	71.76M	84.57M	75.84M	86.04M	67.48M
EBITDA	17.45M	17.82M	17.62M	9.91M	12.65M	6.37M
Net Income	-5.48M	-6.11M	-3.81M	-8.68M	-5.50M	-44.67M
Balance Sheet
Total Assets	98.35M	98.32M	108.52M	172.54M	159.67M	200.50M
Cash, Cash Equivalents and Short-Term Investments	7.28M	5.38M	3.21M	18.11M	1.46M	5.66M
Total Debt	66.91M	69.35M	72.50M	120.13M	115.88M	135.62M
Total Liabilities	106.61M	108.27M	112.60M	171.88M	156.37M	187.26M
Stockholders Equity	-9.73M	-9.95M	-4.08M	662.00K	3.30M	7.44M
Cash Flow
Free Cash Flow	2.24M	5.20M	-13.76M	8.26M	-2.73M	5.94M
Operating Cash Flow	9.70M	15.96M	-6.16M	15.98M	14.81M	18.75M
Investing Cash Flow	-8.86M	-10.43M	38.14M	-3.88M	1.68M	-12.62M
Financing Cash Flow	-1.46M	-4.35M	-46.88M	4.54M	-20.53M	-9.93M

Paragon Technical Analysis

Technical Analysis SentimentNegative

Last Price0.28

Price Trends

50DMA0.69Negative

100DMA1.16Negative

200DMA1.46Negative

Market Momentum

MACD-0.12Positive

RSI21.10Positive

STOCH13.06Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:PGN, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.69, and below the 200-day MA of 1.46, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 21.10 is Positive, neither overbought nor oversold. The STOCH value of 13.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:PGN.

Paragon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

DE:PGN 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:BDT	51Neutral	EUR 78.42M	-1.64	-16.20%	―	-14.82%	44.17%
DE:GMM	51Neutral	EUR 122.18M	6.46	9.76%	―	1.82%	13.67%
DE:PWO	51Neutral	EUR 63.13M	23.75	1.63%	8.01%	-6.65%	-75.87%
DE:MSAG	47Neutral	EUR 40.97M	-7.87	-9.25%	―	5.78%	47.39%
DE:PGN	43Neutral	EUR 1.07M	-15.23	4.18%	―	-18.30%	―
DE:ED4	40Underperform	EUR 123.37M	-4.89	-12.07%	―	-10.23%	-8.88%

* General Sector Average

Performance Comparison

DE:PGN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:PGN	Paragon AG	0.28	-1.79	-86.47%
DE:BDT	Bertrandt AG	7.76	-10.56	-57.64%
DE:ED4	EDAG Engineering	2.84	-3.26	-53.44%
DE:GMM	Grammer AG	7.90	1.65	26.40%
DE:MSAG	Ms Industrie Ag	1.34	-0.02	-1.47%
DE:PWO	Progress Werk Oberkirch	20.40	-6.61	-24.48%

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: Jan 23, 2026

Paragon AI Stock Analysis