Izertis SA (IZER) AI Stock Analysis

• Market Cap: €266.66M
• Dividend Yield: N/A
• Average Volume (3M): 10.84K
• Price to Earnings (P/E): 47.3
• Beta (1Y): 0.06
• Revenue Growth: 18.40%
• EPS Growth: 18.62%
• Country: ES
• Employees: 1,900
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.16
• Shares Outstanding: 28,734,720
• 10 Day Avg. Volume: 6,654
• 30 Day Avg. Volume: 10,844
• PEG Ratio: -2.97
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 47.95
• 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: €10.00
• Price Target Upside: 7.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: €10.00 ▲(7.76% Upside)

Izertis SA's overall stock score is primarily influenced by its financial performance, which shows strong revenue growth but is offset by declining profit margins and high leverage. Technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. The absence of earnings call data and corporate events means these factors did not influence the score.

Izertis SA Business Overview & Revenue Model

Company Description

Izertis SA (IZER) is a leading technology and consulting firm based in Spain, specializing in digital transformation, technology integration, and IT services. The company operates across various sectors, including telecommunications, finance, public administration, and industry, offering solutions that encompass software development, cloud services, cybersecurity, and data analytics. Izertis aims to enhance business efficiency and innovation by providing tailored technological solutions that meet the specific needs of its clients.

How the Company Makes Money

Izertis generates revenue through a diversified business model that primarily includes consulting services, IT solutions, and digital transformation projects. The company charges clients for project-based work, ongoing managed services, and software licensing fees. Key revenue streams include contracts with public sector entities, private corporations, and multinational companies seeking to modernize their IT infrastructure and enhance operational efficiency. Additionally, strategic partnerships with technology providers and software vendors help bolster its service offerings, allowing Izertis to tap into new markets and expand its client base. The company also benefits from recurring revenue through maintenance and support services, which provide a stable income stream.

Izertis SA Financial Statement Overview

Summary

Izertis SA demonstrates strong revenue growth and stable gross margins, which are positive indicators for future performance. However, declining net profit margins and high leverage present potential risks. The significant drop in free cash flow growth is a concern, suggesting the need for improved cash management. Overall, while the company shows growth potential, it must address profitability and leverage issues to ensure long-term stability.

Income Statement

Izertis SA has shown consistent revenue growth with a 7.04% increase in the latest year, indicating a positive trajectory. The gross profit margin has remained stable around 31.8%, which is healthy for the industry. However, the net profit margin has decreased to 3.22% from 4.30% the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins are solid, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.13, indicating significant leverage, which could pose risks if not managed carefully. Return on equity has decreased to 5.08%, reflecting a decline in profitability relative to shareholder equity. The equity ratio stands at 39.6%, suggesting a moderate level of financial stability.

Cash Flow

Izertis SA experienced a significant decline in free cash flow growth by 61.01%, which is concerning. The operating cash flow to net income ratio is 0.20, indicating that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is 0.52, showing that free cash flow is covering only half of the net income, which could impact future investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	133.08M	117.23M	88.43M	65.05M	50.74M
Gross Profit	42.30M	37.22M	25.70M	17.30M	13.32M
EBITDA	19.93M	17.96M	11.92M	7.79M	6.40M
Net Income	4.28M	5.04M	3.83M	2.33M	1.30M
Balance Sheet
Total Assets	212.72M	192.27M	144.63M	101.19M	62.39M
Cash, Cash Equivalents and Short-Term Investments	33.17M	30.86M	35.86M	37.89M	15.42M
Total Debt	95.18M	82.45M	69.59M	44.44M	20.02M
Total Liabilities	128.16M	119.39M	95.95M	68.96M	39.00M
Stockholders Equity	84.24M	72.65M	48.48M	33.48M	23.14M
Cash Flow
Free Cash Flow	5.31M	10.29M	7.44M	2.10M	5.60M
Operating Cash Flow	10.18M	13.32M	9.53M	4.03M	7.24M
Investing Cash Flow	-18.00M	-19.92M	-20.13M	-5.39M	-6.95M
Financing Cash Flow	10.87M	384.00K	8.48M	22.61M	10.53M

Izertis SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:IZER, the sentiment is Negative. The current price of 9.28 is below the 20-day moving average (MA) of 9.47, below the 50-day MA of 9.74, and below the 200-day MA of 9.54, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 34.06 is Neutral, neither overbought nor oversold. The STOCH value of 38.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:IZER.

Izertis SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IZER	54 Neutral	€266.66M	47.30	6.51%	―	18.40%	18.62%