With a value of a good 38 million euros, Ceotronics AG from Rödermark is one of the smaller stocks on the stock exchange.

But as recently as January, the headset maker was much smaller in terms of market cap.

At the beginning of the year, the 6.6 million shares issued were worth a good 20 million euros.

And if you go back to autumn 2018, you only get half of it.

Anyone who used the paper, which was particularly popular among private investors, can be happy.

A price increase of almost 290 percent has been in the statistics since then.

But even a purchase earlier this year was worth it for the brave.

Thorsten Winter

Business editor and internet coordinator in the Rhein-Main-Zeitung.

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The share of the medium-sized company with 135 employees broke out of the trading range that had been recorded for months and went up steeply.

This has to do with the war in the Ukraine and the subsequently significantly increased need for and awareness of security - Ceotronics not only supplies fire brigades and police forces but also military units.

"Like many stocks from the field of national defence, the share benefited greatly from the federal government's announcement of a EUR 100 billion package for the Bundeswehr," according to the analysts at Bank M. But there are others beyond the new security thinking Reasons.

The price of Ceotronics has picked up in two spurts.

From the end of February to the end of March it went from around EUR 3.70 to around EUR 5.40 and, after a slight dip, it has since peaked at EUR 6.98.

Although the price has fallen to around 6 euros in the past few days and is running sideways again, there is still a full year's plus to book.

Profit increases faster than sales

In February, investors reacted belatedly to the board's half-year report with good figures and a confident outlook.

Accordingly, Ceotronics was able to increase sales to EUR 15.17 million in the first half of the 2021/22 financial year, which was 6.6 percent more than twelve months earlier.

At the same time, it meant a new record.

The profit climbed from 1.59 million euros to 1.83 million euros – an increase of 15 percent.

Although the order backlog fell from a good EUR 19 million to EUR 17.2 million, it was in line with expectations, as the Management Board said.

Mathematically, it accounts for almost two-thirds of the most recent annual turnover.

In its semi-annual report, the board of directors was confident of achieving its annual targets and generating sales of 29 million euros and a surplus of 2.2 million euros.

That would be 33 cents per share.

And the board of directors once again held out the prospect of being able to pay a dividend.

This is a selling point for many small investors.

If the analysts at Bank M have their way, the Ceotronic course still has room for improvement.

A price target of EUR 6.76 corresponds to an upside potential of a good tenth.

The analysts who rate Ceotronics expect a dividend of 16 cents after the last 12 cents per note.

This results in a dividend yield of 2.8 percent, which is impressive - with a payout ratio of 36 percent.

With a price-earnings ratio of 17, the stock appears moderately valued.

However, if you are flirting with paper, you have to know that you are in a tight market.

Even if the trading volume has picked up significantly recently.