Witbe SA (ALWIT) AI Stock Analysis

• Market Cap: €5.58M
• Dividend Yield: N/A
• Average Volume (3M): 4.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -4.14%
• EPS Growth: 26.72%
• Country: FR
• Employees: 134
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): N/A
• Shares Outstanding: 4,118,050
• 10 Day Avg. Volume: 4,298
• 30 Day Avg. Volume: 4,426
• PEG Ratio: 0.35
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 7.22
• 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: 44 Neutral
• Price Target: €1.50 ▲(5.63% Upside)

Witbe SA's overall stock score is primarily impacted by its mixed financial performance and bearish technical indicators. The company's lack of profitability and unattractive valuation further weigh down the score. While cash flow metrics show some resilience, the negative P/E ratio and oversold technical indicators suggest caution for potential investors.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management at the production level, which can support long-term profitability once operating expenses are controlled.

Cash Flow Improvement

Improving cash flow suggests resilience in cash generation, providing the company with the ability to invest in growth opportunities and manage financial obligations.

Subscription-Based Revenue Model

A subscription-based model provides recurring revenue, enhancing financial stability and allowing for predictable cash flow, which supports long-term business planning.

Negative Factors

Negative Profitability Metrics

Negative profitability metrics indicate challenges in managing operating expenses, which can hinder long-term growth and financial health if not addressed.

Negative Return on Equity

A negative return on equity suggests the company is not generating sufficient returns on shareholders' equity, impacting investor confidence and long-term value creation.

Revenue Growth Concerns

Declining revenue growth raises concerns about the company's ability to expand its market presence and sustain long-term growth, necessitating strategic adjustments.

Witbe SA Business Overview & Revenue Model

Company Description

Witbe SA provides services to telecom operators, broadcasters, and application developers worldwide. It offers QoE Monitoring Robots, combination of hardware and software that able to reproduce end user behavior, and rent a movie on a VOD storefront; watch live TV and report on the quality of the video; make phone calls across the countries; send texts and emails to other Robots; and log in to Facebook and share an update or to Twitter and tweet. The company also provides Witbe Central System, a nervous system of the Witbe Galaxy, transforming raw data into exploitable information; and offers services for real-time alerting, live troubleshooting, and exploitable data. In addition, it offers communications QoE monitoring; set-top box test automation and validation; multiscreen and multi-devices video monitoring; business applications performance monitoring; TV, IPTV, and VOD services monitoring; IVR and call centers monitoring; VOD asset checking and monitoring; Web and smartphone applications monitoring; broadband, voice, and TV triple-play monitoring; and OTT video services monitoring solutions. The company was founded in 2000 and is based in Paris, France.

How the Company Makes Money

Witbe SA generates revenue through a subscription-based model, where clients pay for access to its monitoring and analytics services. Key revenue streams include software licensing fees, maintenance contracts, and professional services such as training and consulting. Additionally, the company may benefit from significant partnerships with major telecommunications and media providers, which can enhance its market reach and provide opportunities for upselling advanced features or additional services. Continuous innovation in their technology and expanding their product offerings also play a critical role in driving revenue growth.

Witbe SA Financial Statement Overview

Summary

Witbe SA shows mixed financial performance. Revenue growth and strong gross profit margins are positives, but the company struggles with profitability, as indicated by negative net income and EBIT margins. The balance sheet is moderately stable with manageable leverage, but the negative return on equity is concerning. Cash flow metrics show resilience, suggesting potential for future stability if profitability issues are addressed.

Income Statement

Witbe SA's income statement reveals mixed performance. The company has experienced a slight revenue growth of 2.99% in the most recent year, but profitability remains a concern with a negative net profit margin of -5.07% and a negative EBIT margin of -11.24%. The gross profit margin is strong at 88.70%, indicating efficient cost management at the production level. However, the negative net income and EBIT margins highlight challenges in managing operating expenses and achieving profitability.

Balance Sheet

The balance sheet shows moderate financial stability. The debt-to-equity ratio stands at 0.73, suggesting a balanced approach to leveraging. However, the return on equity is negative at -22.19%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not calculated, but the overall leverage appears manageable.

Cash Flow

Cash flow analysis indicates improvement, with a positive free cash flow growth rate of 3.78% and a healthy operating cash flow to net income ratio of 0.45. The free cash flow to net income ratio is 0.35, showing that the company is generating cash relative to its net income, despite the latter being negative. This suggests some resilience in cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.47M	22.24M	23.20M	26.08M	19.13M	14.38M
Gross Profit	23.37M	19.73M	3.96M	19.35M	19.70M	15.01M
EBITDA	-763.00K	1.33M	2.54M	3.98M	4.75M	-539.00K
Net Income	-2.97M	-1.13M	-1.54M	753.00K	2.11M	-2.82M
Balance Sheet
Total Assets	19.91M	20.37M	22.03M	23.71M	26.41M	20.52M
Cash, Cash Equivalents and Short-Term Investments	435.00K	727.00K	1.50M	2.82M	2.67M	2.61M
Total Debt	3.49M	3.71M	6.00M	3.29M	4.30M	4.89M
Total Liabilities	16.43M	15.29M	15.42M	16.45M	20.36M	17.01M
Stockholders Equity	3.48M	5.08M	6.61M	7.25M	6.04M	3.51M
Cash Flow
Free Cash Flow	1.48M	1.48M	-4.79M	314.00K	-892.00K	-2.32M
Operating Cash Flow	4.26M	4.26M	-732.00K	5.31M	4.60M	2.20M
Investing Cash Flow	-2.77M	-2.77M	-3.27M	-4.06M	-3.97M	-2.71M
Financing Cash Flow	-2.41M	-2.41M	2.48M	-1.14M	-651.00K	3.50M

Witbe SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALWIT, the sentiment is Negative. The current price of 1.42 is above the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.41, and below the 200-day MA of 1.73, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 39.63 is Neutral, neither overbought nor oversold. The STOCH value of 45.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ALWIT.

Witbe SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALNXT	69 Neutral	€15.68M	9.14	5.06%	―	-2.25%	54.93%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ALPRI	57 Neutral	€8.95M	10.97	8.22%	―	6.54%	32.63%
ALISP	52 Neutral	€28.14M	21.72	―	―	-1.63%	―
ALWIT	44 Neutral	€5.58M	-4.94	-19.29%	―	-4.14%	26.72%