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Senetas Corporation Limited (AU:SEN)
ASX:SEN
Australian Market

Senetas Corporation Limited (SEN) AI Stock Analysis

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AU

Senetas Corporation Limited

(Sydney:SEN)

Rating:42Neutral
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 (SEN) vs. iShares MSCI Australia ETF (EWA)

Senetas Corporation Limited Business Overview & Revenue Model

Company DescriptionSenetas 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 MoneySenetas 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
42
Neutral
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
48
Neutral
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
35
Negative
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue34.15M31.25M29.35M25.11M23.01M22.61M
Gross Profit6.62M27.02M23.99M2.23M4.59M6.25M
EBITDA-6.84M-10.07M-10.93M-7.62M-4.30M106.53K
Net Income-3.63M-6.11M-7.31M-5.89M-3.71M-928.00K
Balance Sheet
Total Assets33.82M34.94M31.66M38.16M32.52M42.51M
Cash, Cash Equivalents and Short-Term Investments8.80M9.42M9.81M10.69M11.85M15.71M
Total Debt6.07M3.89M390.00K694.39K971.52K1.63M
Total Liabilities39.84M36.53M25.34M26.57M18.05M22.19M
Stockholders Equity9.89M11.43M11.56M16.84M16.35M19.41M
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-3.07M170.01K
Investing Cash Flow-338.08K-156.44K-441.97K-331.61K-417.10K-1.53M
Financing Cash Flow1.64M6.17M6.60M4.89M-296.81K-865.59K

Senetas Corporation Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.02
Price Trends
50DMA
0.02
Negative
100DMA
0.02
Negative
200DMA
0.02
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
41.68
Neutral
STOCH
200.00
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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
$931.08M14.69-15.89%9.76%10.79%-36.58%
AUFCT
47
Neutral
AU$29.13M-54.77%-14.50%-77.33%
AUFCT
47
Neutral
AU$29.13M-54.77%-14.50%-77.33%
AUWHK
46
Neutral
AU$8.90M
16.26%62.58%
AUSEN
42
Neutral
AU$26.50M-31.58%22.29%64.62%
AUSPX
39
Underperform
AU$32.31M-51.72%71.82%-19.35%
AUSPX
39
Underperform
AU$32.31M-51.72%71.82%-19.35%
AUNET
36
Underperform
AU$11.64M-347.17%-5.53%-50.00%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SEN
Senetas Corporation Limited
0.02
0.01
100.00%
AU:FCT
FirstWave Cloud Technology
0.02
0.00
0.00%
AU:FCT
FirstWave Cloud Technology
0.02
0.00
0.00%
AU:NET
NetLinkz Ltd.
0.01
0.00
0.00%
AU:SPX
Spenda Limited
0.01
0.00
0.00%
AU:SPX
Spenda Limited
0.01
0.00
0.00%
AU:WHK
WhiteHawk Ltd.
0.01
-0.01
-50.00%

Senetas Corporation Limited Corporate Events

Senetas Corporation Updates on 2025 Performance and Votiro Sale
Jul 4, 2025

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
Apr 9, 2025

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
Apr 9, 2025

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
Apr 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025