Verimatrix SA (VMX) AI Stock Analysis

• Market Cap: €16.84M
• Dividend Yield: N/A
• Average Volume (3M): 66.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -14.91%
• EPS Growth: -512.12%
• Country: FR
• Employees: 237
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.69
• Shares Outstanding: 87,549,140
• 10 Day Avg. Volume: 51,739
• 30 Day Avg. Volume: 66,927
• PEG Ratio: 0.08
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -6.77
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: €0.00 ▼(-100.00% Downside)

Verimatrix SA's overall stock score is primarily impacted by its weak financial performance and unattractive valuation. The technical analysis suggests potential downside risk due to overbought conditions. The lack of profitability and absence of dividend yield further contribute to a low investment appeal.

Positive Factors

Debt-Free Balance Sheet

Having no debt leverage reduces financial risk and provides flexibility in managing operations and pursuing growth opportunities.

Strategic Partnerships

Partnerships expand market reach and drive sales, enhancing revenue potential and competitive positioning in the cybersecurity sector.

Innovation Focus

Innovation in security solutions positions the company to adapt to industry changes and capitalize on new market demands, supporting long-term growth.

Negative Factors

Revenue Decline

A declining revenue trend indicates challenges in market demand or competitive pressures, potentially impacting future growth and profitability.

Negative Profit Margins

Negative profit margins highlight struggles in cost management and profitability, which can hinder investment in growth and innovation.

Cash Flow Volatility

Volatile cash flows indicate challenges in financial management, affecting the company's ability to fund operations and strategic initiatives consistently.

Verimatrix SA Business Overview & Revenue Model

Company Description

Verimatrix Société anonyme provides security solutions that protect digital content, applications, and devices worldwide. The company offers security solutions for various markets, including automotive, sports, financial services, healthcare, internet of things, live sports, media and entertainment, and TV, as well as for content owners. The company was formerly known as Inside Secure S.A. and changed its name to Verimatrix Société anonyme in July 2017. Verimatrix Société anonyme was founded in 1995 and is based in Meyreuil, France.

How the Company Makes Money

Verimatrix generates revenue through a subscription-based model, offering its software solutions under various licensing agreements to clients in the media and entertainment industry. Key revenue streams include recurring fees from software licenses, maintenance and support services, and professional services related to deployment and integration. The company also benefits from strategic partnerships with technology providers and system integrators, which expand its market reach and drive additional sales. Additionally, Verimatrix's focus on innovation and developing new security solutions allows it to capture emerging market opportunities, further contributing to its earnings.

Verimatrix SA Financial Statement Overview

Summary

Verimatrix SA's financial performance is concerning, with declining revenues, negative profitability margins, and fluctuating cash flows. Despite a strong equity position with no debt leverage, the company's operational inefficiencies and inability to generate consistent positive cash flow raise concerns about its financial stability and growth prospects.

Income Statement

The income statement reveals revenue decline over the years, with a notable decrease from €98.16M in 2019 to €57.2M in 2024, reflecting a negative growth trajectory. Gross profit margin has decreased, and net profit margins are negative, demonstrating operational inefficiencies and challenges in achieving profitability. EBIT and EBITDA margins are also negative, indicating struggles in managing operational costs effectively.

Balance Sheet

The balance sheet shows a strong equity base with a debt-to-equity ratio of zero in 2024, indicating no leverage risk. However, the equity ratio has decreased over the years, from 56.7% in 2019 to 64.9% in 2024, showing some stability in equity financing. Return on equity remains negative, reflecting the company's inability to generate profit from shareholders' equity.

Cash Flow

Cash flow analysis indicates volatility with free cash flow fluctuating significantly over the years. Operating cash flow to net income ratio is negative, indicating issues in converting revenue into cash. The free cash flow to net income ratio is also negative, highlighting inefficiencies in cash management and operational challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.90M	57.20M	61.63M	61.01M	88.47M	94.89M
Gross Profit	35.20M	38.90M	42.54M	41.84M	64.99M	76.33M
EBITDA	-4.12M	-4.80M	96.00K	-1.24M	14.31M	18.32M
Net Income	-70.90M	-10.30M	-14.29M	-17.61M	3.68M	-10.41M
Balance Sheet
Total Assets	105.00M	171.90M	191.87M	209.91M	239.22M	260.61M
Cash, Cash Equivalents and Short-Term Investments	5.30M	11.00M	22.63M	30.05M	45.27M	48.61M
Total Debt	32.10M	32.27M	32.50M	43.50M	56.80M	73.83M
Total Liabilities	57.70M	60.40M	70.10M	74.04M	87.70M	113.19M
Stockholders Equity	47.30M	111.50M	121.77M	135.87M	151.53M	147.41M
Cash Flow
Free Cash Flow	600.00K	-3.70M	-3.60M	2.67M	12.04M	2.52M
Operating Cash Flow	3.00M	-1.60M	-792.00K	2.90M	12.69M	3.32M
Investing Cash Flow	-2.20M	-2.10M	-2.82M	-3.45M	509.00K	-6.64M
Financing Cash Flow	-7.90M	-8.10M	-3.67M	-14.65M	-16.47M	-1.89M

Verimatrix SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.19
• 50DMA: Positive
• 100DMA: Positive
• 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:VMX, the sentiment is Positive. The current price of 0.19 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.17, and below the 200-day MA of 0.22, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.19 is Neutral, neither overbought nor oversold. The STOCH value of 65.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:VMX.

Verimatrix SA 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%
ALHYP	58 Neutral	€48.49M	35.07	3.47%	―	9.77%	-86.18%
ALLIX	53 Neutral	€156.59M	-83.58	-22.79%	―	17.72%	79.71%
VMX	44 Neutral	€16.84M	-0.25	-86.76%	―	-14.91%	-512.12%
ALGEC	41 Neutral	€2.89M	-4.25	-11.66%	―	-13.72%	-144.02%