Secunet Security Networks YSN.DE
What does Secunet Security Networks do?
Secunet is a German IT security provider headquartered in Essen. The company develops products and solutions for protecting sensitive data and critical infrastructure. These include the SINA product family for processing classified information, hardware security modules, connectors for the healthcare sector, and solutions for biometric identification and border control such as Easygate. The portfolio is complemented by consulting, security analyses and penetration testing.
Revenue is generated in two segments: in the Public Sector, federal agencies, armed forces, security authorities and international institutions are the main customers. The Business Sector addresses companies, operators of critical infrastructure, and automotive and industrial customers. Revenue comes from product sales, licenses, maintenance, projects and consulting. In competitive terms, Secunet benefits from approvals by the Federal Office for Information Security (BSI) and close ties to government clients. This creates barriers to entry for foreign and smaller providers, while competition is broader in the corporate business. The major shareholder Giesecke+Devrient holds the majority.
Score profile
Rank vs. Software - Infrastructure (50 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Secunet Security Networks ranks in the middle in the group Software - Infrastructure (4.1/10). On growth, the company ranks among the best in the group Software - Infrastructure (8.7/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Software - Infrastructure (4.4/10). On financial strength, Secunet Security Networks ranks below average in the group Software - Infrastructure (4.0/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 27.9x | 16.0x | better than 27 % |
| Trailing P/E | 42.9x | 31.5x | better than 35 % |
| PEG ratio | 1.4x | 1.4x | better than 49 % |
| EV/EBITDA | 22.3x | 20.0x | better than 43 % |
| Price/sales | 3.0x | 3.8x | better than 57 % |
| Price/book | 9.4x | 5.8x | better than 22 % |
| Revenue growth | 31.6% | 14.3% | better than 89 % |
| Earnings growth | 117.8% | 24.4% | better than 84 % |
| Gross margin | 22.5% | 72.3% | better than 1 % |
| Operating margin | 14.6% | 13.3% | better than 57 % |
| Net margin | 7.0% | 10.5% | better than 35 % |
| Return on equity | 23.2% | 12.4% | better than 70 % |
| Debt/equity | 19.0% | 17.5% | better than 49 % |
| Current ratio | 1.7x | 1.5x | better than 67 % |
| Free cash flow yield | -1.0% | 3.7% | better than 5 % |
| Dividend yield | 1.1% | 1.1% | – |
| Payout ratio | 48.8% | 31.4% | – |
| Beta | 0.82 | 1.04 | – |
Valuation: what is Secunet Security Networks worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Secunet Security Networks a model range of 130.14 EUR to 203.33 EUR per share.
3 analysts, average rating “Buy”, average price target 253.33 EUR (+11.6%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Government demand for approved, sovereign IT security solutions largely determines the order situation in the Public Sector.
- Regulatory requirements on cybersecurity and digitalization increase demand from public authorities and operators of critical infrastructure.
- Recurring revenue from maintenance, support and follow-up orders stabilizes the business and supports profitability.
Risks
- Heavy dependence on a few public-sector clients makes revenue vulnerable to budget decisions and tender delays.
- Large projects lead to volatile quarterly results, as revenue recognition and acceptances occur unevenly over time.
- Technological shifts and approval requirements demand continuously high development investment; delays can weigh on market position and margin.
What to look for with Secunet Security Networks
Order backlog is particularly informative because, in project-based government business with long lead times, it indicates future revenue visibility.