Senetas Corporation Limited (SEN) AI Stock Analysis

• Market Cap: AU$31.46M
• Dividend Yield: N/A
• Average Volume (3M): 458.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 22.29%
• EPS Growth: 64.62%
• Country: AU
• Employees: 77
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 1,656,019,000
• 10 Day Avg. Volume: 863,275
• 30 Day Avg. Volume: 458,901
• 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: 44 Neutral
• Price Target: ―

Senetas Corporation Limited has a low overall score due to several financial and operational challenges. The company’s declining revenue growth, negative profit margins, and cash flow issues are significant concerns. Technical analysis also signals bearish momentum, and the negative P/E ratio highlights valuation challenges. These factors collectively contribute to the stock's low attractiveness in the competitive software infrastructure market.

Senetas Corporation Limited Business Overview & Revenue Model

Company Description

Senetas Corporation Limited (SEN) is a leading provider of cybersecurity solutions, specializing in high-assurance encryption technologies. The company operates primarily in the data protection sector, offering a range of products including network encryption devices, virtualized encryption solutions, and secure file-sharing applications. Senetas serves a global clientele, including government agencies, defense organizations, and enterprise businesses, ensuring the security and privacy of sensitive information across networks and cloud environments.

How the Company Makes Money

Senetas Corporation Limited generates revenue through the sale of its cybersecurity products and solutions. Key revenue streams include the sale of hardware encryption devices, software licenses for its virtualized encryption solutions, and subscription fees for secure file-sharing services. The company also engages in maintenance and support contracts, providing ongoing customer service and technical support. Significant partnerships with global technology firms enhance its market reach and contribute to earnings by integrating Senetas's encryption technologies into broader cybersecurity frameworks. Additionally, the company may engage in research and development collaborations that further drive innovation and revenue growth.

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
	EBIT
-6.58M	-13.09M	-14.07M	-10.70M	-6.61M	-1.85M
	EBITDA
-6.84M	-10.07M	-10.93M	-7.62M	-4.30M	106.53K
	Net Income Common Stockholders
-3.63M	-6.11M	-7.31M	-5.89M	-3.71M	-928.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.80M	9.42M	9.81M	10.69M	11.85M	15.71M
	Total Assets
33.82M	34.94M	31.66M	38.16M	32.52M	42.51M
	Total Debt
6.07M	3.89M	390.00K	694.39K	971.52K	1.63M
	Net Debt
-2.74M	-5.53M	-9.42M	-10.00M	-10.88M	-14.08M
	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 88.89 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 *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%
WHK	46 Neutral	AU$9.64M	―		―	16.26%	62.58%
SPX	44 Neutral	AU$32.31M	―	-51.72%	―	71.82%	-19.35%
SEN	44 Neutral	AU$31.46M	―	-31.58%	―	22.29%	64.62%
FCT	40 Underperform	AU$23.99M	―	-54.77%	―	-14.50%	-77.33%
NET	36 Underperform	AU$11.64M	―	-347.17%	―	-5.53%	-50.00%

Senetas Corporation Limited Corporate Events

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.

Senetas Issues New Shares Under Employee Plan

Senetas Corporation Limited has announced the issuance of 500,000 new fully paid ordinary shares under its Employee Share Option Plan. This move, compliant with relevant provisions of the Corporations Act, does not require additional disclosure to investors, indicating transparency and adherence to regulatory standards.

Senetas Corporation Limited Issues 500,000 New Securities

Senetas Corporation Limited has announced the issuance of 500,000 ordinary fully paid securities, which will be quoted on the ASX. This move, part of an employee incentive scheme, reflects the company’s strategy to enhance employee engagement and align their interests with corporate growth, potentially impacting its market position positively by strengthening its workforce commitment.

Senetas Announces Director’s Shareholding Restructuring

Senetas Corporation Limited announced a change in the director’s interest, specifically involving Francis William Galbally. A total of 7,166,667 shares were transferred from Southbank Capital Pty Ltd to Corporate Services Management Pty Ltd, both of which Galbally has a controlling interest in. This internal transfer of shares reflects a restructuring of Galbally’s indirect holdings, with no new shares acquired or sold, maintaining the overall shareholding structure.