Senetas Corporation Limited (SEN) AI Stock Analysis

• Market Cap: AU$48.02M
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.78
• Revenue Growth: -38.38%
• EPS Growth: -277.78%
• Country: AU
• Employees: 77
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.00
• Shares Outstanding: 1,656,019,000
• 10 Day Avg. Volume: 2,136,612
• 30 Day Avg. Volume: 1,107,332
• PEG Ratio: 0.01
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 2.29
• P/FCF Ratio: -79.20
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

Senetas Corporation Limited's stock score is primarily influenced by its mixed financial performance and strong technical indicators. The positive momentum in technical analysis is offset by valuation concerns due to a negative P/E ratio and lack of dividend yield. Financial challenges, particularly in cash flow, also weigh on the overall score.

Senetas Corporation Limited Business Overview & Revenue Model

Company Description

Senetas Corporation Limited, together with its subsidiaries, offers network data security solutions to businesses and governments worldwide. It operates in two segments, Product Division and Solutions Technology Division. The company's products include CN series network encryption hardware and CV series virtualized network encryption, SureDrop secure file sharing and collaboration, Votiro secure file gateway, and CM7 network encryption management products. It also offers support and maintenance services. In addition, the company provides cloud and network, data center, big data protection, branch offices data protection, CCTV network applications, and post-quantum encryption security services. It serves commercial, government and defense, infrastructure, finance, gaming, and healthcare industries. The company was incorporated in 1982 and is headquartered in South Melbourne, Australia.

How the Company Makes Money

Senetas generates revenue through the sale of its encryption products and services, which include hardware devices, software licenses, and ongoing maintenance and support contracts. The company typically operates on a business-to-business (B2B) model, targeting enterprises and government agencies that require high-level data security. Key revenue streams include direct sales of encryption solutions, subscription fees for software services, and professional services related to implementation and training. Additionally, Senetas may engage in strategic partnerships with other technology firms, resellers, and distributors, enhancing its market reach and generating additional sales opportunities. The growing demand for cybersecurity solutions, driven by increasing regulatory requirements and rising cyber threats, contributes significantly to the company’s earnings.

Senetas Corporation Limited Financial Statement Overview

Summary

Senetas Corporation faces significant financial challenges with declining revenue growth, negative profitability margins, and cash flow constraints. Despite manageable debt levels, the weakening equity position and ongoing losses highlight struggles in achieving financial stability in a competitive market.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.25M	19.25M	31.25M	29.35M	25.11M	23.01M
Gross Profit	5.71M	7.83M	8.21M	-1.23M	2.23M	1.38M
EBITDA	-1.53M	1.43M	-10.07M	-10.93M	-7.57M	-4.30M
Net Income	-27.39M	27.82M	-6.11M	-7.31M	-5.89M	-3.71M
Balance Sheet
Total Assets	63.45M	63.45M	34.94M	31.66M	38.16M	32.52M
Cash, Cash Equivalents and Short-Term Investments	11.58M	11.58M	9.42M	9.81M	10.69M	11.85M
Total Debt	4.04M	4.04M	3.89M	390.00K	694.39K	971.52K
Total Liabilities	16.74M	16.74M	36.53M	25.34M	26.57M	18.05M
Stockholders Equity	42.05M	42.05M	11.43M	11.56M	16.84M	16.35M
Cash Flow
Free Cash Flow	-3.92M	-557.73K	-6.64M	-7.85M	-6.11M	-3.43M
Operating Cash Flow	-3.60M	-244.24K	-6.49M	-7.42M	-5.79M	-3.07M
Investing Cash Flow	4.31M	4.32M	-156.44K	-441.97K	-331.61K	-417.10K
Financing Cash Flow	1.44M	1.44M	6.17M	6.60M	4.89M	-296.81K

Senetas Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 68.82 is Neutral, neither overbought nor oversold. The STOCH value of 111.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SEN	54 Neutral	AU$48.02M	1.55	-64.51%	―	-38.38%	-277.78%
WHK	46 Neutral	AU$9.85M	―	―	―	13.07%	68.60%
FCT	42 Neutral	AU$22.79M	―	-54.62%	―	-22.47%	39.26%
SPX	37 Underperform	AU$16.55M	―	-97.38%	―	106.21%	-60.61%
NET	36 Underperform	AU$11.64M	―	-347.17%	―	-20.82%	17.95%

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.