tiprankstipranks
Trending News
More News >
Scout Security Ltd. (AU:SCT)
:SCT
Australian Market

Scout Security Ltd. (SCT) AI Stock Analysis

Compare
1 Followers

Top Page

AU

Scout Security Ltd.

(Sydney:SCT)

Rating:36Underperform
Price Target:
Scout Security Ltd. is facing significant financial difficulties, including declining revenue and persistent losses. The technical analysis indicates a lack of momentum, and the stock's negative P/E ratio highlights valuation challenges. Without any positive earnings call or corporate events to offset these issues, the stock's outlook remains weak.

Scout Security Ltd. (SCT) vs. iShares MSCI Australia ETF (EWA)

Scout Security Ltd. Business Overview & Revenue Model

Company DescriptionScout Security Ltd. (SCT) is a company that specializes in providing advanced security solutions with a focus on home security systems. The company operates within the technology and security sectors, offering a range of products that include wireless alarm systems, security cameras, and various home automation devices. Scout Security is committed to delivering innovative, user-friendly security solutions that empower homeowners to protect their properties effectively.
How the Company Makes MoneyScout Security Ltd. generates revenue primarily through the sale of its security systems and associated products. The company's revenue model includes direct sales to consumers through its online platform, as well as through retail partnerships and distributors. Additionally, Scout Security offers subscription-based services for professional monitoring and cloud storage, providing a recurring revenue stream. Significant partnerships with technology integrators and retail chains enhance their market reach and contribute to sales growth by leveraging established distribution networks.

Scout Security Ltd. Financial Statement Overview

Summary
Scout Security Ltd. faces significant financial challenges with declining revenue, persistent losses, and a highly leveraged balance sheet. The company's negative equity and substantial debt raise concerns about its financial sustainability. Despite some improvement in operating cash flow, the overall financial health remains weak, necessitating strategic measures to enhance profitability and reduce leverage.
Income Statement
15
Very Negative
Scout Security Ltd. has demonstrated declining revenue over recent years with a revenue growth rate of 18.56% from 2023 to 2024 but a significant drop compared to previous years. The company has negative profitability margins, with a gross profit margin of 56.72% and a net profit margin of -182.58% for the latest year, indicating inefficiencies and high operational costs relative to revenue.
Balance Sheet
10
Very Negative
The company's balance sheet reflects significant financial instability, with a highly negative stockholders' equity of -$7,832,224 and a high debt-to-equity ratio, which cannot be computed due to negative equity. This indicates excessive leverage and potential solvency issues, posing substantial financial risk.
Cash Flow
20
Very Negative
Cash flow analysis shows a slight improvement in operating cash flow from -$3,442,303 in 2023 to -$1,787,839 in 2024, but free cash flow remains negative, indicating persistent cash flow issues. The operating cash flow to net income ratio is 0.50, showing some operational cash generation relative to net losses.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.97M1.66M4.31M1.67M3.12M
Gross Profit1.12M661.70K1.98M856.21K1.99M
EBITDA-2.58M-3.68M-2.51M-3.23M-1.51M
Net Income-3.59M-4.54M-3.15M-4.85M-1.65M
Balance Sheet
Total Assets532.90K1.75M1.96M3.59M1.04M
Cash, Cash Equivalents and Short-Term Investments163.82K1.05M236.86K2.08M62.31K
Total Debt4.74M4.19M2.31M961.63K206.60K
Total Liabilities8.37M6.25M4.40M3.65M2.45M
Stockholders Equity-7.83M-4.49M-2.44M-60.00K-1.41M
Cash Flow
Free Cash Flow-1.79M-3.44M-3.15M-2.15M-519.61K
Operating Cash Flow-1.79M-3.44M-3.15M-2.15M-519.61K
Investing Cash Flow0.000.00-606.43K0.000.00
Financing Cash Flow903.97K4.25M2.02M4.00M216.60K

Scout Security Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCDA
72
Outperform
$3.53B39.4019.85%1.29%15.59%19.34%
AUCHC
63
Neutral
$9.12B314.681.03%2.43%-19.75%
AUBSA
61
Neutral
AU$5.87M0.351050.70%18.55%90.06%
59
Neutral
AU$1.64B9.4411.52%3.68%6.78%6.51%
AUSCT
36
Underperform
AU$1.63M
18.59%22.71%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SCT
Scout Security Ltd.
0.52
0.00
0.00%
AU:CDA
Codan Limited
19.43
7.61
64.40%
AU:BSA
BSA Limited
0.08
-0.64
-88.89%
AU:CHC
Charter Hall Group
19.29
8.48
78.46%

Scout Security Ltd. Corporate Events

Scout Security Corrects Director Interest Discrepancies
Mar 25, 2025

Scout Security Ltd has corrected minor administrative errors in the reporting of directors Anthony Brown and Martin Pretty’s interests in unquoted options. These discrepancies involved transpositions between classes of options, but the total number of options held remained accurate. The corrections have been made to ensure accurate reporting, reflecting Scout’s commitment to transparency and proper governance.

Scout Security Ltd. Announces Cessation of Securities
Mar 20, 2025

Scout Security Ltd. announced the cessation of 9,000 securities due to the expiry of options or other convertible securities without exercise or conversion. This development may impact the company’s capital structure and could have implications for its market positioning as it adjusts to the changes in its issued capital.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 08, 2025