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Senetas Corporation Limited (AU:SEN)
ASX:SEN
Australian Market
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Senetas Corporation Limited (SEN) AI Stock Analysis

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AU:SEN

Senetas Corporation Limited

(Sydney:SEN)

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Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
AU$0.03
▼(-98.96% 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
Strong Net Profit Margin
A strong net profit margin indicates effective cost management and pricing strategies, enhancing the company's ability to generate profit from its operations.
Low Financial Leverage
Low leverage suggests financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.
High Return on Equity
High ROE indicates efficient use of equity capital to generate profits, reflecting strong management performance and potential for shareholder value creation.
Negative Factors
Declining Revenue
Significant revenue decline suggests challenges in maintaining market share or demand, potentially impacting long-term growth and competitiveness.
Cash Flow Challenges
Negative cash flows indicate liquidity issues, limiting the company's ability to fund operations and invest in future growth without external financing.
Low Operational Margins
Low operational margins reflect inefficiencies in core operations, which could hinder profitability and require strategic improvements to enhance competitiveness.

Senetas Corporation Limited (SEN) vs. iShares MSCI Australia ETF (EWA)

Senetas Corporation Limited Business Overview & Revenue Model

Company DescriptionSenetas 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 MoneySenetas 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 shown a mixed financial performance. Despite a positive net profit margin, the significant revenue decline and low operational margins are concerning. The balance sheet is relatively strong with low leverage, but cash flow issues persist, indicating potential liquidity challenges.
Income Statement
45
Neutral
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
60
Neutral
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
30
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue19.25M19.25M31.25M29.35M25.11M23.01M
Gross Profit5.71M7.83M8.21M-1.23M2.23M1.38M
EBITDA-1.21M1.43M-10.07M-10.93M-7.57M-3.90M
Net Income-27.39M27.82M-6.11M-7.31M-5.89M-3.71M
Balance Sheet
Total Assets63.45M63.45M34.94M31.66M38.16M32.52M
Cash, Cash Equivalents and Short-Term Investments11.58M11.58M9.42M9.81M10.69M11.85M
Total Debt4.04M4.04M3.89M390.00K694.39K971.52K
Total Liabilities16.74M16.74M36.53M25.34M26.57M18.05M
Stockholders Equity42.05M42.05M11.43M11.56M16.84M16.35M
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 Flow4.31M4.32M-156.44K-441.97K-331.61K-417.10K
Financing Cash Flow1.44M1.44M6.17M6.60M4.89M-296.81K

Senetas Corporation Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.59
Price Trends
50DMA
2.58
Positive
100DMA
2.26
Positive
200DMA
2.10
Positive
Market Momentum
MACD
<0.01
Negative
RSI
52.29
Neutral
STOCH
10.75
Positive
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 2.59 is above the 20-day moving average (MA) of 2.49, above the 50-day MA of 2.58, and above the 200-day MA of 2.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 10.75 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
48
Neutral
AU$45.59M-1.59-64.51%466.29%-38.38%-275.50%
46
Neutral
AU$9.61M-2.6313.07%68.60%
42
Neutral
AU$22.83M-1.46-54.62%-22.47%39.26%
37
Underperform
AU$14.59M-97.38%106.21%-60.61%
36
Underperform
AU$11.64M-3.13-20.82%17.95%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SEN
Senetas Corporation Limited
2.59
0.11
4.44%
AU:FCT
FirstWave Cloud Technology
0.01
-0.01
-50.00%
AU:NET
NetLinkz Ltd.
0.01
0.00
0.00%
AU:BEO
SkyFii Limited
0.16
-0.16
-50.00%
AU:SPX
Spenda Limited
0.01
0.00
0.00%
AU:WHK
WhiteHawk Ltd.
0.01
0.00
0.00%

Senetas Corporation Limited Corporate Events

Senetas Corporation Limited Appoints New Director to Strengthen Leadership
Nov 17, 2025

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
Nov 14, 2025

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
Nov 13, 2025

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
Nov 13, 2025

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
Oct 19, 2025

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
Oct 19, 2025

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.

Senetas Corporation Schedules Virtual AGM with Key Resolutions on Executive Compensation
Oct 13, 2025

Senetas Corporation Limited has announced its upcoming Annual General Meeting (AGM) for shareholders, scheduled to be held virtually on November 14, 2025. The meeting will cover several key business items, including the consideration of financial reports, re-election of directors, adoption of the remuneration report, approval of options for the Managing Director and CEO, and potential termination benefits. These resolutions, particularly those concerning executive compensation and benefits, may impact the company’s governance and shareholder relations.

Senetas Corporation Limited Releases 2025 Corporate Governance Statement
Sep 30, 2025

Senetas Corporation Limited has released its corporate governance statement for the financial year ending June 2025, highlighting its compliance with the ASX’s Corporate Governance Principles and Recommendations. The company acknowledges some non-compliance due to its size and operational scale but maintains a robust governance framework, ensuring clear delineation of responsibilities between the board and management, and accountability of the company secretary to the board.

Senetas Corporation Updates Capital Consolidation Timeline
Sep 5, 2025

Senetas Corporation Limited has announced an update regarding the consolidation and return of its capital. The company, which deals with securities such as SEN Ordinary Fully Paid, SENAB Options, and SENAA Performance Rights, is adjusting the record date for its capital consolidation to follow the completion of its capital return, pending shareholder approval. This decision aligns with ASX Listing Rule 7.13, which prohibits having the same record dates for both actions. This update may impact the company’s financial structuring and shareholder value, aligning with regulatory compliance and potentially affecting market perception.

Senetas Announces Cash Return of Capital to Shareholders
Aug 29, 2025

Senetas Corporation Limited has announced a cash return of capital to its shareholders, with a payment of AUD 0.00120772 per security. This move is part of a broader strategy to optimize the company’s capital structure and potentially enhance shareholder value. The trading of reorganized securities will commence on November 19, 2025, with the record date set for November 20, 2025, and payment scheduled for November 27, 2025. This announcement reflects Senetas’s commitment to returning value to its shareholders and may impact its financial operations and market positioning.

Senetas Corporation Announces Security Consolidation
Aug 29, 2025

Senetas Corporation Limited has announced a security consolidation, affecting its ordinary fully paid shares, options, and performance rights. This reorganization is set to begin trading on a deferred settlement basis from November 19, 2025, with the record date on November 20, 2025, and the issue date on November 27, 2025. Security holder approval has been obtained, indicating a strategic move to streamline its securities structure, potentially impacting its market positioning and shareholder value.

Senetas Reports Strong FY2025 Results with Strategic Capital Initiatives
Aug 29, 2025

Senetas Corporation Limited reported a significant net profit of $27.8 million for the year ending 30 June 2025, primarily due to the sale of its Votiro business, which positively impacted its financial position. The company ended the fiscal year with a strong cash position, no debt, and a promising sales pipeline, leading to proposed capital management initiatives, including a capital reduction and share consolidation, to be discussed at the upcoming AGM.

Senetas Corporation Reports Strong FY2025 Results Following Strategic Divestment
Aug 29, 2025

Senetas Corporation Limited reported a significant net profit of $27.8 million for the year ending June 30, 2025, largely due to the sale of its Votiro business. This strategic move has allowed Senetas to focus on its profitable core network encryption operations, resulting in a strong cash position and a record sales pipeline. The company plans to propose a capital return to shareholders and a share consolidation, reflecting its confidence in future growth and commitment to delivering shareholder value.

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: Nov 18, 2025