(TOM2) TomTom - Ratings and Ratios

TomTom NV is a leading provider of navigation and location-based products and services, operating globally across Europe, the Americas, and other international markets. The company is segmented into two main divisions: Location Technology and Consumer, catering to a diverse range of customers including enterprises, automotive manufacturers, and individual consumers. Its product portfolio encompasses a wide array of offerings such as navigation applications, satellite navigation devices for personal and professional use, in-dash navigation systems, and various accessories and map updates for drivers. Additionally, TomTom provides critical mapping data and APIs for automation, automotive industries, and developers, as well as traffic solutions that include real-time traffic statistics, route monitoring, and historical traffic volume analysis.

The companys extensive suite of services and products supports various applications including road traffic management, location intelligence, electrification, automated driving, and fleet management. TomToms solutions are designed to meet the needs of the automotive industry, consumer markets, and public sector entities, positioning it as a key player in the navigation and location-based technology sector. Founded in 1991, TomTom is headquartered in Amsterdam, Netherlands, and has established itself as a significant entity in the consumer electronics sub-industry, as classified by the GICS.

Analyzing TomToms current market position and future prospects involves examining both its technical and fundamental data. From a technical standpoint, the stocks current price is €4.64, aligning with its 20-day Simple Moving Average (SMA20), indicating a stable short-term trend. However, the stock is below its 50-day and 200-day SMAs, suggesting a longer-term downtrend. The Average True Range (ATR) of €0.25 indicates a relatively moderate volatility, with the stock having fluctuated between €4.00 and €5.84 over the past 52 weeks.

Fundamentally, TomToms market capitalization stands at €596.11 million, with a forward Price-to-Earnings (P/E) ratio of 88.50, indicating high expectations for future earnings growth. However, the companys current Return on Equity (RoE) is negative at -11.87%, raising concerns about its current profitability. Despite this, the absence of a trailing P/E ratio suggests that the company may have reported losses in the recent past, but is expected to return to profitability.

Forecasting TomToms future performance, we can anticipate that the companys efforts in expanding its Location Technology segment, particularly in the automotive and enterprise sectors, could drive growth. The increasing demand for navigation and location-based services in the automotive industry, coupled with the trend towards automated driving and electrification, presents opportunities for TomTom to leverage its expertise and product offerings. However, the high forward P/E ratio indicates that much of this growth is already priced into the stock. Therefore, a cautious outlook is warranted, with potential for the stock to experience volatility around its current price of €4.64. A break above the SMA50 at €4.72 could signal a positive short-term trend, while a failure to sustain above this level may indicate continued downward pressure.