Substrate Artificial Intelligence SA (SAI) AI Stock Analysis

• Market Cap: €42.47M
• Dividend Yield: N/A
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 1.3
• Beta (1Y): 0.15
• Revenue Growth: 36.55%
• EPS Growth: N/A
• Country: ES
• Employees: 131
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 167,621,890
• 10 Day Avg. Volume: 1,372,903
• 30 Day Avg. Volume: 1,332,685
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 213.86
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €0.00 ▼(-100.00% Downside)

The overall stock score of 75 reflects strong financial performance with impressive revenue growth and profitability, supported by a solid balance sheet. The valuation is attractive with a low P/E ratio, indicating potential for price appreciation. Technical analysis shows mixed signals with short-term bullish momentum but potential bearish divergence. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust market demand and successful expansion efforts, positioning the company for continued success in its industry.

Profitability

High profit margins reflect efficient cost management and strong pricing power, contributing to sustainable profitability and competitive advantage.

Balance Sheet Strength

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility to invest in growth opportunities.

Negative Factors

Free Cash Flow Challenges

Negative free cash flow growth suggests potential liquidity issues, which could limit the company's ability to fund operations and invest in future growth.

Cash Generation

Moderate cash generation relative to net income indicates potential inefficiencies in converting earnings into cash, impacting liquidity and operational flexibility.

Profitability Volatility

Historical volatility in profitability suggests challenges in maintaining consistent performance, which could affect long-term financial stability.

Substrate Artificial Intelligence SA Business Overview & Revenue Model

Company Description

Substrate Artificial Intelligence SA (SAI) is a cutting-edge technology company specializing in the development of advanced artificial intelligence solutions. Operating primarily in the sectors of machine learning, data analytics, and automation, SAI offers a suite of products and services designed to enhance business efficiency and decision-making capabilities. Its core offerings include AI-driven predictive analytics tools, natural language processing applications, and custom AI solutions tailored to specific industry needs.

How the Company Makes Money

Substrate Artificial Intelligence SA generates revenue through a diversified business model that includes software licensing, subscription services, and consulting fees. Key revenue streams consist of monthly and annual subscriptions for its cloud-based AI applications, one-time licensing fees for on-premises software installations, and ongoing maintenance and support contracts. Additionally, SAI has established strategic partnerships with various enterprises and technology providers, allowing for co-development opportunities and shared revenue models. The company also capitalizes on its expertise by offering consulting services to help businesses implement AI solutions effectively, further contributing to its earnings.

Substrate Artificial Intelligence SA Financial Statement Overview

Summary

Substrate Artificial Intelligence SA exhibits strong revenue growth and profitability, with robust margins and a solid balance sheet characterized by low leverage and high equity. However, the company faces challenges in free cash flow generation, which could impact liquidity.

Income Statement

Substrate Artificial Intelligence SA has demonstrated impressive revenue growth of 104.57% in the latest year, indicating strong market demand and expansion. The company has achieved a high gross profit margin of 76.90% and a net profit margin of 42.07%, showcasing excellent profitability. The EBIT and EBITDA margins are also robust at 53.94% and 65.26%, respectively, reflecting efficient operational management. However, previous years showed volatility with negative margins, suggesting past challenges in achieving consistent profitability.

Balance Sheet

The company's balance sheet is solid, with a low debt-to-equity ratio of 0.10, indicating conservative leverage and financial stability. The return on equity is strong at 17.93%, reflecting effective use of equity capital to generate profits. The equity ratio stands at 67.06%, highlighting a strong equity base relative to total assets. Despite these strengths, the company has experienced fluctuations in equity and returns in previous years, which could pose potential risks.

Cash Flow

While the operating cash flow has improved significantly, the free cash flow growth rate is negative at -101.16%, indicating challenges in generating free cash flow. The operating cash flow to net income ratio is 0.48, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is low at 0.68%, pointing to limited free cash flow relative to earnings. These metrics highlight potential liquidity concerns despite improvements in operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.57M	17.52M	8.61M	3.14M	1.60M
Gross Profit	1.78M	13.47M	5.76M	-44.02M	2.01M
EBITDA	-3.71M	11.44M	-6.28M	―	―
Net Income	-8.73M	7.37M	-8.73M	11.17K	―
Balance Sheet
Total Assets	44.46M	61.32M	44.46M	22.32M	33.36M
Cash, Cash Equivalents and Short-Term Investments	4.44M	1.15M	4.44M	1.63M	625.76K
Total Debt	3.59M	3.96M	3.59M	654.20K	14.87K
Total Liabilities	20.60M	19.56M	20.60M	4.73M	5.55M
Stockholders Equity	22.93M	41.11M	22.93M	17.50M	27.82M
Cash Flow
Free Cash Flow	-3.70M	43.02K	-4.55M	―	―
Operating Cash Flow	-3.64M	6.35M	-3.64M	―	―
Investing Cash Flow	-632.99K	-11.25M	-632.99K	―	―
Financing Cash Flow	7.07M	1.47M	7.07M	4.92M	2.05M

Substrate Artificial Intelligence SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:SAI, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.26 is Neutral, neither overbought nor oversold. The STOCH value of 40.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:SAI.

Substrate Artificial Intelligence SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAI	75 Outperform	€42.47M	1.30	23.03%	―	36.55%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%