Scout Security Ltd. (SCT) AI Stock Analysis

• Market Cap: AU$1.63M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 2.09
• Revenue Growth: 18.59%
• EPS Growth: 22.71%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 93
• Industry: Security & Protection Services
• EPS (TTM): N/A
• Shares Outstanding: 14,127,944
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: <0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 36 Underperform
• 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. Business Overview & Revenue Model

Company Description

Scout Security Limited provides home security systems and services in the United States. Its products include hubs that connects directly to sensors across home; door panels with RFID sticker and security sensors to scare intruders; access sensors, which detects opening and closing of windows, doors, cabinets, and safes; and motion sensor alarms that protect areas of house that are hard to cover with a door panel or access sensor. It also offers video doorbells, indoor/outdoor video cameras, keypads, water sensors, glass break sensors, and door locks, as well as refurbished products; and accessories, such as yard signs, panic buttons, remote controls, siren and zigbee repeaters, window stickers, key fobs, and RFID stickers. The company provides cloud video storage and monitoring services. It sells its products and services directly through its Website, as well as through partners. The company was founded in 2013 and is based in Sydney, Australia.

How the Company Makes Money

Scout 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.97M	1.66M	4.31M	1.67M	3.12M
Gross Profit	1.12M	661.70K	1.98M	856.21K	1.99M
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 Assets	532.90K	1.75M	1.96M	3.59M	1.04M
Cash, Cash Equivalents and Short-Term Investments	163.82K	1.05M	236.86K	2.08M	62.31K
Total Debt	4.74M	4.19M	2.31M	961.63K	206.60K
Total Liabilities	8.37M	6.25M	4.40M	3.65M	2.45M
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 Flow	0.00	0.00	-606.43K	0.00	0.00
Financing Cash Flow	903.97K	4.25M	2.02M	4.00M	216.60K

Scout Security Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$11.14B	16.13	4.60%	2.08%	3.17%	-25.97%
IMB	51 Neutral	AU$231.87M	―	-30.47%	―	102.12%	66.76%
AVA	46 Neutral	AU$24.69M	―	-10.45%	―	13.25%	13.71%
SP3	40 Underperform	AU$4.44M	―	-244.13%	―	7.28%	31.75%
MSG	39 Underperform	$1.19M	1.08	36.82%	―	-100.00%	―
DTI	36 Underperform	AU$5.36M	―	-51.77%	―	-28.33%	-95.45%
SCT	36 Underperform	AU$1.63M	―		―	18.59%	22.71%

Scout Security Ltd. Corporate Events

Scout Security Corrects Director Interest Discrepancies

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

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.