Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Softing AG is a Germany-based software and systems company specializing in hardware and software solutions for industrial automation, automotive electronics, and IT networks. Founded in 1979 and headquartered in Haar near Munich, the company operates through three main segments: Industrial, which focuses on fieldbus and Industrial Ethernet integration for Industry 4.0 and IIoT applications; Automotive, providing diagnostics, testing, and data communication tools for electronic control units in vehicles, including autonomous driving and connected car technologies; and IT Networks, offering measurement equipment to certify, qualify, and troubleshoot copper and fiber-optic cabling based on global standards. With around 413 employees, Softing AG generates significant revenue from the USA, Germany, and the rest of the world, emphasizing standardized technologies for seamless interoperability in process engineering, discrete manufacturing, and network infrastructure. As a global provider, it supports customers in optimizing digital data exchange, ensuring reliable connectivity, and enhancing efficiency across automotive manufacturing, industrial production, and IT systems throughout their lifecycles.
The business is unprofitable at the operating level (-6.73% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 10.7% YoY. Margins deteriorated 7.2pp alongside, both lines moving the wrong way.
ROIC dropped from 0.42% to -6.12%, capital efficiency is deteriorating. Net debt of €11M represents 4.8x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
€84M
▼ -10.7% YoY
Net Income (TTM)
-€5M
▼ -241.9% YoY
Op. Margin
-6.29%
▼ -7.2pp YoY
ROIC
-6.12%
▼ -6.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
€4M
▲ +0.2% YoY
Op. Cash Flow (TTM)
€6M
▲ +23.9% YoY
Net Debt
€11M
Cash & Equiv.
€7M
3Y CAGR: -4.8%
3Y CAGR: -15.5%
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