Senetas Corporation Limited (SEN) AI Stock Analysis

• Market Cap: AU$26.50M
• Dividend Yield: N/A
• Average Volume (3M): 716.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 22.29%
• EPS Growth: 64.62%
• Country: AU
• Employees: 77
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 1,656,019,000
• 10 Day Avg. Volume: 886,163
• 30 Day Avg. Volume: 716,436
• PEG Ratio: -0.34
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.56
• 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: 42 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Senetas Corporation Limited's overall stock score reflects significant financial and technical weaknesses. The financial performance is the most critical factor, with ongoing losses, negative cash flow, and declining equity position. Technical analysis further confirms the bearish outlook, while valuation metrics highlight unattractive prospects due to negative earnings.

Senetas Corporation Limited Business Overview & Revenue Model

Company Description

Senetas Corporation Limited (SEN) is an Australian-based company specializing in cybersecurity solutions, particularly in the sectors of data encryption and network security. The company's core products include high-assurance encryption hardware and virtualized encryption solutions designed to protect sensitive data in motion across networks. Senetas serves a diverse range of industries, including government, defense, financial services, and telecommunications, providing robust security solutions to safeguard data against cyber threats.

How the Company Makes Money

Senetas Corporation Limited generates revenue primarily through the sale of its encryption hardware and software solutions. Key revenue streams include direct sales to businesses and government entities seeking high-assurance data protection solutions. Additionally, the company earns from maintenance and support services associated with its products, providing ongoing technical assistance and updates. Significant partnerships with technology distributors and resellers further contribute to its earnings by expanding its market reach and customer base. Senetas also benefits from strategic alliances with technology partners that integrate its encryption solutions into broader cybersecurity offerings, enhancing its revenue potential.

Senetas Corporation Limited Financial Statement Overview

Summary

Senetas Corporation faces significant financial challenges, characterized by declining revenue growth, negative profitability margins, and cash flow constraints. While the debt level is relatively low, the weakening equity position and ongoing losses highlight struggles in achieving financial stability and operational efficiency.

Income Statement

Senetas Corporation has faced challenges with declining revenue growth at 6.47% in 2024 compared to 13.56% in 2023. The company also exhibits negative margins, with a Gross Profit Margin of 0.96% and a Net Profit Margin of -19.54% in 2024, indicating struggles in profitability. The consistent negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate financial structure with a Debt-to-Equity Ratio of 0.34, indicating manageable leverage. However, a declining Equity Ratio from 51.95% in 2020 to 32.72% in 2024 suggests potential weakening of financial stability. Return on Equity remains negative at -53.42%, reflecting persistent profitability issues.

Cash Flow

Cash flow analysis reveals ongoing challenges with negative free cash flow, though the Free Cash Flow has improved from -18.23% in 2023 to -15.35% in 2024. The Operating Cash Flow to Net Income ratio is negative, indicating cash flow issues in covering net losses.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	34.15M	31.25M	29.35M	25.11M	23.01M	22.61M
Gross Profit	6.62M	27.02M	23.99M	2.23M	4.59M	6.25M
EBITDA	-6.84M	-10.07M	-10.93M	-7.62M	-4.30M	106.53K
Net Income	-3.63M	-6.11M	-7.31M	-5.89M	-3.71M	-928.00K
Balance Sheet
Total Assets	33.82M	34.94M	31.66M	38.16M	32.52M	42.51M
Cash, Cash Equivalents and Short-Term Investments	8.80M	9.42M	9.81M	10.69M	11.85M	15.71M
Total Debt	6.07M	3.89M	390.00K	694.39K	971.52K	1.63M
Total Liabilities	39.84M	36.53M	25.34M	26.57M	18.05M	22.19M
Stockholders Equity	9.89M	11.43M	11.56M	16.84M	16.35M	19.41M
Cash Flow
Free Cash Flow	-4.99M	-6.64M	-7.85M	-6.11M	-3.43M	-348.82K
Operating Cash Flow	-4.67M	-6.49M	-7.42M	-5.79M	-3.07M	170.01K
Investing Cash Flow	-338.08K	-156.44K	-441.97K	-331.61K	-417.10K	-1.53M
Financing Cash Flow	1.64M	6.17M	6.60M	4.89M	-296.81K	-865.59K

Senetas Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SEN, the sentiment is Negative. The current price of 0.02 is equal to the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.68 is Neutral, neither overbought nor oversold. The STOCH value of 200.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SEN.

Senetas Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$931.08M	14.69	-15.89%	9.76%	10.79%	-36.58%
FCT	47 Neutral	AU$29.13M	―	-54.77%	―	-14.50%	-77.33%
FCT	47 Neutral	AU$29.13M	―	-54.77%	―	-14.50%	-77.33%
WHK	46 Neutral	AU$8.90M	―		―	16.26%	62.58%
SEN	42 Neutral	AU$26.50M	―	-31.58%	―	22.29%	64.62%
SPX	39 Underperform	AU$32.31M	―	-51.72%	―	71.82%	-19.35%
SPX	39 Underperform	AU$32.31M	―	-51.72%	―	71.82%	-19.35%
NET	36 Underperform	AU$11.64M	―	-347.17%	―	-5.53%	-50.00%

Senetas Corporation Limited Corporate Events

Senetas Corporation Updates on 2025 Performance and Votiro Sale

Senetas Corporation Limited has provided a business update for the 2025 financial year, highlighting that sales are expected to be slightly below the previous year due to tighter customer budgets and changes at its distribution partner, Thales. Despite this, the company remains optimistic about future growth, particularly with ongoing technology projects. Additionally, Senetas announced the sale of its Votiro business to Menlo Security, with proceeds in cash and shares, which may offer substantial value to shareholders over time. The transaction is expected to enhance Senetas’s financial position and provide opportunities for capital management activities.

Senetas Announces Cessation of Performance Rights

Senetas Corporation Limited announced the cessation of 462,500 performance rights due to the conditions for these securities not being met or becoming incapable of being satisfied. This development may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s operational performance and strategic direction.

Senetas Corporation Limited Announces Cessation of Securities

Senetas Corporation Limited announced the cessation of 2,000,000 securities due to the lapse of conditional rights that were not satisfied. This cessation may impact the company’s capital structure and could influence investor perception regarding the company’s financial strategy and operational focus.

Senetas Corporation Issues Unquoted Equity Securities

Senetas Corporation Limited announced the issuance of 8,000,000 unquoted equity securities under an employee incentive scheme. This move is part of the company’s strategy to enhance employee engagement and align their interests with corporate goals, potentially impacting its operational dynamics and market positioning.