Novem Group SA

Novem Group SA maintains a liquidity position with a current ratio of 1.89, indicating the company can cover its short-term liabilities with its short-term assets. However, the company's debt-to-equity ratio of 2.78 suggests a high reliance on debt financing, which could increase financial risk. The company's free cash flow of 8.27 million EUR indicates some capacity to fund operations and growth without external financing.

In terms of profitability, Novem Group SA's return on equity of 3.65% and return on assets of 0.54% are below the industry median for the Auto, Truck & Motorcycle Parts sector, suggesting that the company is underperforming in generating returns relative to its equity and asset base. The operating margin of 7.16% (calculated from operating income of 10.73 million EUR on revenue of 149.71 million EUR) is also below the sector median, indicating that the company is less efficient in converting revenue into operating profit.

The company's revenue is concentrated in the automotive components segment, with no disclosed geographic diversification in the provided data. This concentration could expose the company to risks associated with downturns in the automotive industry or regional economic shifts. The lack of segment or geographic breakdown in the financial data limits the ability to assess diversification risk comprehensively.

Looking at growth, Novem Group SA's revenue of 149.71 million EUR in the latest period suggests a stable but not rapidly growing business. The company's capital expenditure of -16.09 million EUR indicates a reduction in investment in long-term assets, which could signal a focus on cost control or a lack of growth opportunities. Analysts have assigned a mean price target of 2.76 EUR, with a median of 2.76 EUR, suggesting a neutral outlook on the stock.

The risk assessment highlights a medium liquidity risk, with the company's cash and equivalents of 141.51 million EUR not sufficient to cover its long-term debt of 249.92 million EUR. This net cash deficit could limit the company's flexibility in responding to financial stress. The dilution risk is assessed as low, with no significant dilution potential identified in the data. The company's financial leverage and liquidity position are key areas to monitor for potential risk escalation.

Recent events and filings do not show any material changes in the company's operations or financial position. The company's financial statements and analyst estimates suggest a stable but not particularly dynamic business environment. The absence of recent significant events or disclosures implies that the company is not currently facing major operational or financial disruptions.

Novem Group generated EUR 25.7 million in free cash flow in 2025, significantly improving from EUR 2.2 million in 2024.

Analysts assign a mean price target of EUR 2.76, implying 6.2% upside from the current market price of EUR 2.60.

Return on equity of 3.65% outperforms the cohort median of 3.39%, indicating efficient capital utilization relative to peers.

Long-term debt decreased to EUR 298.2 million in 2025 from EUR 306.4 million in 2024, showing modest deleveraging progress.

The debt-to-equity ratio of 2.78 places Novem Group in the bottom quartile of its cohort, indicating high financial leverage.

Credit risk is flagged as high, suggesting significant potential for financial distress or default given the company's leverage profile.

Net margin of 2.2% trails the cohort median of 3.2%, indicating inferior bottom-line efficiency compared to industry peers.

Revenue €138.0M, −7,8% YoY; Operating income −6,5% YoY.

• ▍Revenue €138.0M, −7,8% YoY
• ▍Operating income −6,5% YoY
• ▍Net income −32,0% YoY
• ▍Free cash flow −29,5% YoY
• ▍Net margin 1.6%

Revenue €541.5M, −14,8% YoY; Operating income −27,3% YoY.

• ▍Revenue €541.5M, −14,8% YoY
• ▍Operating income −27,3% YoY
• ▍Net income −68,0% YoY
• ▍Free cash flow +1 090,2% YoY
• ▍Net margin 2.1%

Revenue €635.5M, −9,2% YoY; Operating income −26,3% YoY.

• ▍Revenue €635.5M, −9,2% YoY
• ▍Operating income −26,3% YoY
• ▍Net income −30,4% YoY
• ▍Free cash flow −95,4% YoY
• ▍Net margin 5.5%