Theon International Plc (THEON) AI Stock Analysis

• Market Cap: €2.00B
• Dividend Yield: 1.88%
• Average Volume (3M): 302.58K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.97
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: NL
• Employees: 633
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): 0.22
• Shares Outstanding: 70,000,000
• 10 Day Avg. Volume: 338,080
• 30 Day Avg. Volume: 302,585
• PEG Ratio: 0.21
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 2.47
• P/FCF Ratio: -23.62
• 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: €35.00
• Price Target Upside: 20.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: €31.00 ▲(6.53% Upside)

Theon International Plc's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. Addressing cash flow challenges could enhance the company's financial stability and stock performance.

Positive Factors

Revenue Growth

Consistent revenue growth highlights Theon's expanding market presence and product adoption, strengthening its competitive position in the defense sector.

Profitability

Improved profitability margins suggest effective cost control and operational efficiency, enhancing Theon's ability to reinvest in growth and innovation.

Balance Sheet Health

A strong equity position and improved leverage management provide financial stability, enabling Theon to invest in strategic initiatives and withstand market fluctuations.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential difficulties in generating cash from operations, which could limit Theon's ability to fund growth initiatives without external financing.

Operational Cash Flow Fluctuation

Fluctuating operational cash flow suggests instability in cash generation, which may impact Theon's capacity to maintain consistent investment in R&D and expansion.

Liability Management

Prudent liability management is crucial for maintaining financial health, as increasing liabilities could strain resources and affect long-term viability.

Theon International Plc Business Overview & Revenue Model

Company Description

Theon International Plc (THEON) is a leading provider of advanced optical systems and solutions, specializing in the defense and aerospace sectors. The company designs and manufactures high-performance imaging systems, night vision devices, and thermal imaging equipment, catering to military, law enforcement, and commercial applications. With a focus on innovation and technological advancement, Theon International aims to enhance situational awareness and operational effectiveness for its clients worldwide.

How the Company Makes Money

Theon International generates revenue primarily through the sale of its advanced optical products, which include night vision goggles, thermal imaging cameras, and other imaging systems. The company operates on a business-to-business (B2B) model, supplying its products to government agencies, military organizations, and private sector companies involved in security and surveillance. Key revenue streams include direct sales of equipment, as well as long-term contracts and partnerships with defense ministries and law enforcement agencies. Additionally, Theon International may offer maintenance, repair, and upgrade services for its products, contributing to recurring revenue. Strategic partnerships with other defense contractors and participation in international defense expos also play a significant role in enhancing its market presence and driving sales.

Theon International Plc Financial Statement Overview

Summary

Theon International Plc has demonstrated strong revenue growth and improved profitability margins. The balance sheet is robust with a healthy equity position and improved leverage management. However, cash flow variability, particularly in operational cash generation, poses a challenge that needs addressing.

Income Statement

Theon International Plc has demonstrated strong revenue growth, with a notable increase from $37.5 million in 2019 to $352.4 million in 2024. The gross profit margin has improved significantly, indicating efficient cost management. Net profit margin and EBIT margin have also shown positive trends, reflecting enhanced profitability. However, the company should remain vigilant about maintaining these margins as it scales.

Balance Sheet

The balance sheet reflects a healthy equity position with a substantial increase in stockholders' equity from $7.1 million in 2019 to $224.4 million in 2024. The debt-to-equity ratio has improved, suggesting better leverage management. The equity ratio indicates a strong asset base supported by equity. However, the company should continue to manage its liabilities prudently to sustain financial stability.

Cash Flow

The cash flow statement shows variability in free cash flow, with negative free cash flow in recent years. Operating cash flow has fluctuated, indicating potential challenges in cash generation from operations. The company has managed to secure financing effectively, but it should focus on improving operational cash flows to ensure long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	383.71M	352.36M	218.72M	142.89M	80.56M	54.22M
Gross Profit	122.69M	109.21M	70.21M	50.21M	32.81M	16.91M
EBITDA	98.48M	93.56M	56.23M	40.72M	26.10M	12.44M
Net Income	72.79M	67.42M	36.10M	30.00M	19.06M	7.43M
Balance Sheet
Total Assets	424.57M	392.44M	210.52M	157.69M	71.94M	46.15M
Cash, Cash Equivalents and Short-Term Investments	132.22M	118.53M	65.80M	24.50M	26.49M	14.97M
Total Debt	93.64M	76.09M	51.88M	34.96M	18.28M	20.34M
Total Liabilities	177.93M	156.23M	133.16M	93.24M	38.09M	31.52M
Stockholders Equity	234.72M	224.37M	77.36M	64.26M	33.85M	14.62M
Cash Flow
Free Cash Flow	53.97M	-36.84M	27.69M	-10.77M	13.83M	7.48M
Operating Cash Flow	46.34M	-26.12M	35.26M	-6.94M	18.43M	8.40M
Investing Cash Flow	21.53M	-35.67M	213.15K	-11.51M	-4.19M	-834.30K
Financing Cash Flow	-31.69M	83.91M	6.37M	16.40M	-3.31M	-55.71K

Theon International Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.10
• 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 NL:THEON, the sentiment is Positive. The current price of 29.1 is below the 20-day moving average (MA) of 31.53, above the 50-day MA of 28.98, and above the 200-day MA of 25.52, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 44.08 is Neutral, neither overbought nor oversold. The STOCH value of 29.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:THEON.

Theon International Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEDAP	―	€660.33M	31.56	29.06%	3.13%	4.11%	22.38%
TWEKA	―	€1.55B	24.45	7.75%	3.88%	-3.59%	-46.68%
THEON	―	€2.00B	27.45	―	1.88%	―	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TOM2	―	€640.17M	―	-12.26%	―	-1.70%	24.14%
MTRK	―	€199.23M	―	―	―	-7.94%	7.30%
CMCOM	―	€137.75M	―	-57.80%	―	0.36%	34.49%

Theon International Plc Corporate Events

Theon International Secures Major NATO and Asian Contracts

Theon International Plc has signed a significant multi-year framework agreement with a European NATO member state for the supply of night vision goggles and IRIS-C Thermal Clip-ons, valued at over €300 million, with execution expected mainly between 2026 and 2028. Additionally, Theon secured a €32 million contract with an Asian customer for thermal weapon sights, highlighting its strategic diversification into digital and thermal products and reinforcing its position as a leader in night vision technology.

The most recent analyst rating on (NL:THEON) stock is a Sell with a EUR24.00 price target. To see the full list of analyst forecasts on Theon International Plc stock, see the NL:THEON Stock Forecast page.

Theon International to Discuss Strategic Stake in Exosens

Theon International Plc announced it will host a conference call to discuss its acquisition of a 9.8% stake in Exosens SA, a prominent French electro-optical technology company. This strategic move is expected to enhance Theon’s industry positioning and expand its technological capabilities, potentially impacting stakeholders positively by broadening its market reach and strengthening its competitive edge.

The most recent analyst rating on (NL:THEON) stock is a Buy with a EUR40.00 price target. To see the full list of analyst forecasts on Theon International Plc stock, see the NL:THEON Stock Forecast page.

Theon International Expands Global Leadership in Defense Optronics with Strategic Investments

Theon International Plc has announced strategic investments and partnerships under its THEON NEXT initiative to enhance its leadership in the digital and augmented reality defense optronics domain. The company is investing in Kopin Corporation for AR system development, signing a supply agreement with eMagin Corporation for OLED displays, and partnering with ALEREON for wireless communication technology. These initiatives aim to strengthen Theon’s technological capabilities and market presence in the US and Europe, reinforcing its commitment to innovation and supply chain security.

The most recent analyst rating on (NL:THEON) stock is a Buy with a EUR40.00 price target. To see the full list of analyst forecasts on Theon International Plc stock, see the NL:THEON Stock Forecast page.