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TomTom (NL:TOM2)
:TOM2
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TomTom
(OTC:TOM2)
Rating:64Neutral
Price Target:
€5.50
▲( 11.56% Upside)
TomTom (TOM2) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
$593.66M
Dividend YieldN/A
Average Volume (3M)300.00K
Price to Earnings (P/E)―
Beta (1Y)1.62
Revenue Growth-1.34%
EPS Growth65.83%
CountryNL
Employees3,600
SectorTechnology
Sector Strength75
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding125,000,000
10 Day Avg. Volume253,412
30 Day Avg. Volume299,999
Financial Highlights & Ratios
PEG Ratio-1.39
Price to Book (P/B)3.96
Price to Sales (P/S)0.00
P/FCF Ratio56.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside1.43% Upside
Rating ConsensusHold
Number of Analyst Covering1
TomTom Business Overview & Revenue Model
Company DescriptionTomTom N.V. is a Dutch multinational company that specializes in location technology and consumer electronics. Founded in 1991 and headquartered in Amsterdam, TomTom initially gained prominence through its navigation and mapping products for automotive and personal use. Over time, the company has diversified its offerings to include advanced location-based products and services, catering to the automotive, logistics, and enterprise sectors. Its core products include navigation software, real-time traffic information, and mapping technologies.
How the Company Makes MoneyTomTom makes money through several revenue streams. The company's primary revenue sources include licensing its mapping and navigation software to automotive manufacturers, offering cloud-based services for fleet management and logistics, and selling consumer electronics such as GPS devices and sports watches. Additionally, TomTom generates income from its location technology services, which are used by businesses in various sectors for applications like route optimization and vehicle tracking. Strategic partnerships with carmakers and technology companies also contribute significantly to its earnings, allowing TomTom to expand its reach and integrate its technologies into third-party platforms.
TomTom Financial Statement Overview
Summary
TomTom's financials exhibit resilience with strong gross margins and improving cash flows. However, profitability challenges persist with negative net income and ROE. The balance sheet remains stable, and cash flow trends are positive, providing a solid base for potential recovery. Operational inefficiencies and revenue stagnation need to be addressed to improve financial health.Income Statement
TomTom's income statement shows mixed performance. The TTM Gross Profit Margin is approximately 85.2%, reflecting strong profitability in its core operations. However, the Net Profit Margin is negative, at around -1.63%, indicating the company is not profitable overall. Revenue growth from 2024 to 2025 is negligible, suggesting stagnation. The EBIT and EBITDA margins are -1.68% and 3.34% respectively for TTM, showing operational challenges but some potential for recovery in EBITDA.60
Neutral
Balance Sheet
The balance sheet presents a stable financial position with a Debt-to-Equity Ratio of 0.29, indicating a conservative use of debt. The TTM Return on Equity is negative at -6.58%, highlighting a need for improving profitability. The Equity Ratio stands at 19.8%, which is on the lower side, suggesting reliance on liabilities for asset financing.65
Positive
Cash Flow
Cash flow analysis reveals positive trends, with a significant improvement in Free Cash Flow to 9.99M in TTM from a negative position in 2024. The Free Cash Flow Growth Rate is strong, and the Operating Cash Flow to Net Income Ratio is 1.67, indicating efficient cash generation relative to reported losses. However, a cautious approach is warranted due to past fluctuations.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 575.50M | 574.38M | 584.76M | 536.34M | 506.93M | 528.18M | Gross Profit |
| 490.34M | 487.51M | 495.77M | 449.72M | 407.11M | 423.39M | EBIT |
| -9.66M | -20.29M | -20.01M | -97.61M | -93.19M | -287.71M | EBITDA |
| 19.22M | 25.87M | 31.56M | -36.94M | -11.47M | -7.45M | Net Income Common Stockholders |
| -9.40M | -17.29M | -21.01M | -102.73M | -94.65M | -257.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 283.86M | 263.65M | 315.19M | 303.73M | 355.82M | 372.45M | Total Assets |
| 771.03M | 724.42M | 795.89M | 807.50M | 890.74M | 978.02M | Total Debt |
| 47.08M | 43.52M | 46.71M | 37.73M | 33.34M | 43.67M | Net Debt |
| -12.55M | -12.40M | -40.82M | -95.00M | -172.48M | -187.85M | Total Liabilities |
| 611.38M | 585.57M | 614.30M | 607.90M | 608.02M | 590.40M | Stockholders Equity |
| 159.65M | 138.85M | 181.59M | 199.61M | 282.72M | 387.62M |
| Cash Flow | Free Cash Flow | ||||
| 9.98M | -4.22M | 20.84M | -41.57M | 23.51M | -26.48M | Operating Cash Flow |
| 15.66M | 1.35M | 32.70M | -31.41M | 36.78M | -20.18M | Investing Cash Flow |
| 10.45M | 14.35M | -53.55M | -30.77M | -19.98M | 73.51M | Financing Cash Flow |
| -28.32M | -47.89M | -23.46M | -10.32M | -43.66M | -29.68M |
TomTom Technical Analysis
Positive
4.93
Price Trends
4.77
Positive
4.84
Positive
4.98
Negative
Market Momentum
0.07
Negative
55.22
Neutral
69.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:TOM2, the sentiment is Positive. The current price of 4.93 is above the 20-day moving average (MA) of 4.80, above the 50-day MA of 4.77, and below the 200-day MA of 4.98, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 69.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:TOM2.
TomTom Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
NL:TOM2
TomTom
4.88
-0.70
-12.55%
NL:CMCOM
CM.com N.V.
6.75
-0.14
-2.03%
TomTom Earnings Call Summary
Earnings Call Date:Apr 15, 2025
(Q1-2025)
| % Change Since: 15.46%|
Next Earnings Date:Jul 15, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed sentiment. While there are notable highlights such as the significant growth in the Enterprise segment and improvement in gross margin, there are also concerns with marginal group revenue increase, decline in consumer segment revenue, and uncertainties in the short-term outlook. Overall, the positive aspects are balanced by the challenges and uncertainties outlined.Q1-2025 Updates
Positive Updates
Enterprise Segment Revenue Growth
Revenue from the Enterprise segment grew significantly by 18% to EUR42 million, driven by the adoption of location technology products across various sectors.
Automotive Operational Revenue Increase
Automotive operational revenue increased by 5% year-on-year to EUR83 million, attributed to the growing adoption of products within vehicles.
Gross Margin Improvement
Gross margin increased to 88%, up from 86% last year, due to a greater contribution of high-margin location technology revenue.
Positive Free Cash Flow Movement
Free cash flow improved to an outflow of EUR3 million, compared with an outflow of EUR9 million last year, mainly due to a lower payout for personal-related accruals and favorable movement in receivable position.
Negative Updates
Marginal Group Revenue Increase
Group revenue was EUR140 million, a marginal increase from last year's EUR139 million, indicating slower growth across the company.
Automotive IFRS Revenue Decline
Automotive IFRS revenue declined by 4% to EUR80 million due to the nature of product and contract revenue deferrals.
Consumer Segment Revenue Decline
The consumer segment revenue declined by 8% year-on-year to EUR90 million.
Operating Expenses Concern
Operating expenses were EUR170 million, up from EUR125 million in the same quarter last year, reflecting the capitalization of costs related to automotive driving-related maps layer.
Uncertain Short-term Outlook
Uncertainty in the short-term outlook due to current trade tensions and market unpredictability affecting car volumes in key markets.
Company Guidance
During TomTom's First Quarter 2025 Results Conference Call, the company provided key financial metrics and guidance for the future. For Q1 2025, group revenue was reported at EUR140 million, a slight increase from EUR139 million in the previous year. The Enterprise segment saw a significant 18% growth in revenue, reaching EUR42 million, while the Automotive segment's operational revenue increased by 5% year-on-year to EUR83 million. However, Automotive IFRS revenue declined by 4% to EUR80 million due to deferred revenue recognition. Overall, the Location Technology segment revenues grew by 2% to EUR121 million, whereas the Consumer segment experienced an 8% decline to EUR90 million. The gross margin improved to 88% from 86% last year, and operating expenses dropped to EUR170 million from EUR125 million, partly due to the capitalization of costs related to new automotive maps. The net cash position at the quarter's end was EUR257 million, with free cash flow showing an outflow of EUR3 million, an improvement from the EUR9 million outflow the previous year. Despite short-term uncertainties due to trade tensions, TomTom remains optimistic about its long-term trajectory, maintaining its guidance for the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.