Senetas Corporation Limited (SEN) AI Stock Analysis

• Market Cap: AU$36.97M
• Dividend Yield: 4.99%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -38.38%
• EPS Growth: -275.50%
• Country: AU
• Employees: 77
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.02
• Shares Outstanding: 16,577,389
• 10 Day Avg. Volume: 2,136,612
• 30 Day Avg. Volume: 1,107,332
• PEG Ratio: <0.01
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 1.42
• P/FCF Ratio: -49.09
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: AU$2.00 ▼(-14.89% Downside)

The overall stock score is primarily influenced by the mixed financial performance, with significant revenue decline and cash flow issues. Technical analysis shows some positive trends, but valuation metrics indicate potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

High-assurance encryption niche

Senetas’s focus on high-assurance encryption for government, defense, finance and critical infrastructure aligns with persistent regulatory and security-driven demand. This concentrated B2B positioning supports durable contract opportunities, high switching costs and long product lifecycles over several months to years.

Low financial leverage

A very low debt-to-equity ratio gives Senetas financial flexibility to fund product development, pursue partnerships, or withstand cyclical downturns without immediate refinancing pressure. Prudent leverage supports survival and strategic investment capacity over the medium term.

Strong reported returns

A high ROE indicates the company has recently converted invested equity into outsized earnings, reflecting operational efficiency or concentrated profitability. If sustained, this implies effective capital use and an ability to generate shareholder returns despite a small employee base and niche market focus.

Negative Factors

Significant revenue decline

A steep, multi-tenths decline in revenue signals erosion of top-line momentum or lost contracts in core markets. Over 2–6 months this threatens long-term R&D funding, customer retention and margin recovery, making sustainable growth and market-share maintenance a material risk.

Weak operating and free cash flow

Negative operating and free cash flows with very large FCF deterioration constrain the company’s ability to fund working capital, invest in product development, or support sales expansion without external financing. This creates structural liquidity risk for medium-term strategy execution.

Low operating margins

Persistently low EBIT/EBITDA margins suggest limited pricing power or high fixed costs versus revenue base. Over several months this reduces resilience to competitive pricing, slows ability to translate any revenue growth into cash, and hampers reinvestment for product roadmaps.

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 Limited has a mixed financial performance. Despite a positive net profit margin, the company faces a significant revenue decline and low operational margins. The balance sheet is strong with low leverage, but cash flow issues indicate potential liquidity challenges.

Income Statement

Senetas Corporation Limited has shown a significant decline in revenue with a negative growth rate of -43.62% in the latest year. Despite this, the company achieved a positive net profit margin of 144.50%, indicating a turnaround from previous losses. However, the EBIT and EBITDA margins remain low, reflecting operational challenges.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.096, suggesting prudent financial leverage. The return on equity is notably high at 66.17%, driven by the recent profitability. However, the equity ratio indicates moderate reliance on equity financing, which could be a concern if asset growth is needed.

Cash Flow

Senetas Corporation Limited faces challenges in cash flow management, with negative operating and free cash flows. The free cash flow growth rate is significantly negative at -88.83%, and the operating cash flow to net income ratio is also negative, highlighting cash flow sustainability issues.

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	-1.21M	1.43M	-10.07M	-10.93M	-7.57M	-3.90M
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: Neutral
• Last Price: 2.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SEN, the sentiment is Neutral. The current price of 2.35 is above the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.42, and above the 200-day MA of 2.13, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 40.42 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	48 Neutral	AU$36.97M	-1.31	-64.51%	4.99%	-38.38%	-275.50%
WHK	44 Neutral	AU$7.32M	-2.63	―	―	13.07%	68.60%
FCT	42 Neutral	AU$12.73M	-1.22	-54.62%	―	-22.47%	39.26%
SPX	37 Underperform	AU$16.25M	-1.89	-97.38%	―	106.21%	-60.61%

Senetas Corporation Limited Corporate Events

Senetas Announces Director’s Interest Change Post-Share Consolidation

Senetas Corporation Limited announced a change in the director’s interest, specifically regarding Andrew R. Wilson. Following shareholder approval at the Annual General Meeting, the company completed a 100:1 share consolidation, affecting the number of shares and options held. As a result, Wilson now holds 16,725 shares and 360,000 options, with the new options issued under the 2023 Employee Share Ownership Plan. This adjustment reflects Senetas’ strategic financial restructuring, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:SEN) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Senetas Corporation Limited stock, see the AU:SEN Stock Forecast page.

Senetas Corporation Completes Capital Management Initiatives

Senetas Corporation Limited has completed significant capital management initiatives, including a capital reduction returning approximately $2 million to shareholders and a 100:1 share consolidation. These actions, approved at the company’s 2025 AGM, are designed to streamline the company’s capital structure and potentially enhance shareholder value. The adjustments in convertible securities and exercise prices are in line with ASX Listing Rules, maintaining the overall financial integrity of the company’s offerings.

The most recent analyst rating on (AU:SEN) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Senetas Corporation Limited stock, see the AU:SEN Stock Forecast page.

Senetas Corporation Limited Appoints New Director to Strengthen Leadership

Senetas Corporation Limited has announced the appointment of Chris Steven Fedde as a new director, effective from November 17, 2025. This appointment is part of the company’s strategic efforts to strengthen its leadership team, which could potentially enhance its market position and operational capabilities in the cybersecurity industry.

Senetas Corporation Reports Successful AGM Outcomes

Senetas Corporation Limited announced the results of its 2025 Annual General Meeting, where all resolutions were passed by a poll. The successful resolutions, including the re-election of directors and approval of financial measures, indicate strong shareholder support and are likely to positively impact the company’s strategic initiatives and market confidence.

Senetas Corporation Announces Board Changes with New Director Appointment

Senetas Corporation Limited announced a significant change to its board with the retirement of Dave Hansen and the appointment of Chris Fedde as a new director, effective 17 November 2025. Chris Fedde brings extensive experience in the cybersecurity industry, having held leadership roles in companies like SafeNet, Hexis Cyber Solutions, and Bandura Cyber. His appointment is expected to strengthen Senetas’s position in the cybersecurity market, leveraging his expertise to drive further growth and innovation.

Senetas Corporation Focuses on Core Operations Following Strategic Sale

During its 2025 Annual General Meeting, Senetas Corporation announced a transformative year marked by the sale of its Votiro business to Menlo Security. This move allows Senetas to concentrate on its core defense technology operations while retaining a stake in Menlo, offering potential future benefits as Menlo and Votiro grow. The company ended the financial year with a strong cash position and its largest-ever sales pipeline, signaling promising growth prospects.

Senetas Issues New Shares Under Employee Ownership Plan

Senetas Corporation Limited has issued 1,800,000 new fully paid ordinary shares under its Employee Share Ownership Plan 2023. This move, compliant with the Corporations Act 2001, does not require additional disclosure to investors, indicating transparency and adherence to regulatory standards, potentially strengthening stakeholder trust.

Senetas Corporation Limited Announces Quotation of New Securities

Senetas Corporation Limited has announced the application for the quotation of 1,800,000 ordinary fully paid securities on the Australian Securities Exchange (ASX). These securities are issued under an employee incentive scheme and are not subject to transfer restrictions. This move is expected to enhance the company’s market presence and provide liquidity to its stakeholders.