Aferian plc (AFRN) AI Stock Analysis

• Market Cap: £1.95M
• Dividend Yield: N/A
• Average Volume (3M): 66.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -17.99%
• EPS Growth: 92.79%
• Country: UK
• Employees: 169
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.01
• Shares Outstanding: 111,212,105
• 10 Day Avg. Volume: 25,795
• 30 Day Avg. Volume: 66,357
• PEG Ratio: <0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -1.14
• 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: 41 Neutral
• Price Target: 2.00p ▲(14.29% Upside)

Aferian plc's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical analysis provides a neutral outlook, while valuation metrics are unfavorable due to negative earnings. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Business Model Strength

Aferian's diversified revenue streams through subscriptions, licensing, and services provide a stable income base, reducing reliance on any single source and enhancing resilience against market fluctuations.

Industry Position

Operating in the growing media and entertainment sector, Aferian is well-positioned to benefit from increasing demand for digital content solutions, supporting long-term growth potential.

Gross Profit Margin

A high gross profit margin suggests effective cost control and pricing power, which can support profitability as the company scales and potentially improves its net margins.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in maintaining market share or product demand, which could impact long-term growth and financial stability if not addressed.

High Leverage

High leverage increases financial risk, limiting the company's ability to invest in growth opportunities and potentially leading to financial distress if cash flows do not improve.

Negative Profitability

Sustained negative profitability indicates operational inefficiencies and challenges in achieving cost-effective growth, which could hinder long-term financial health and shareholder value.

Aferian plc Business Overview & Revenue Model

Company Description

Aferian Plc, together with its subsidiaries, operates as a B2B video streaming solutions company worldwide. It engages in the delivery of video experiences over IP using its end-to-end solution. The company develops and sells streaming devices and solutions, including licensing and support services; online video solutions; and set-top box devices, and associated operating and device management software. It is also involved in the development and sale of an end-to-end streaming platform and associated services to content owners, broadcasters, and Pay TV operators. The company was formerly known as Amino Technologies plc and changed its name to Aferian Plc in June 2021. Aferian Plc was founded in 1997 and is headquartered in Cambridge, the United Kingdom.

How the Company Makes Money

Aferian generates revenue through a combination of software licensing, subscription services, and professional services. The primary revenue stream comes from its subscription-based offerings, where clients pay for access to its analytics and streaming platforms on a recurring basis. Additionally, the company earns revenue from licensing its technology to other businesses, allowing them to integrate Aferian's solutions into their own offerings. Professional services, including consulting and implementation support, also contribute to revenue, particularly as clients seek to tailor Aferian's solutions to their specific needs. Strategic partnerships with content producers and telecommunications providers further bolster Aferian's income by expanding its market reach and enhancing its product capabilities.

Aferian plc Financial Statement Overview

Summary

Aferian plc is facing significant financial challenges. The income statement shows declining revenues and negative profitability, with a net profit margin of -53.08%. The balance sheet indicates high leverage with a debt-to-equity ratio of 2.13 and negative return on equity. Cash flow metrics reflect liquidity issues, with negative operating and free cash flow.

Income Statement

Aferian plc's income statement reveals significant challenges, with a declining revenue trend and negative profitability margins. The gross profit margin stands at 61.88%, indicating some efficiency in cost management. However, the net profit margin is deeply negative at -53.08%, reflecting substantial losses. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies. Revenue has decreased by 28.95% compared to the previous year, indicating a concerning downward trajectory.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.13, suggesting significant leverage and potential financial risk. Return on equity is negative at -185.79%, indicating that the company is not generating returns for its shareholders. The equity ratio is relatively low, reflecting a smaller proportion of equity financing. Overall, the balance sheet indicates financial instability and high leverage.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow, indicating liquidity challenges. The free cash flow growth rate is negative, showing a decline in cash generation. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio is positive at 1.94, but this is due to the negative net income, which is not a positive indicator.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.98M	26.31M	47.82M	91.13M	92.89M	82.70M
Gross Profit	4.58M	16.28M	25.06M	42.01M	44.89M	40.66M
EBITDA	1.70M	-4.49M	-50.14M	-4.62M	16.14M	15.35M
Net Income	-1.18M	-13.96M	-63.50M	-17.42M	5.65M	3.09M
Balance Sheet
Total Assets	33.09M	34.84M	52.02M	125.22M	137.80M	122.52M
Cash, Cash Equivalents and Short-Term Investments	564.00K	2.27M	5.77M	11.52M	14.18M	9.48M
Total Debt	15.92M	16.04M	13.23M	9.83M	2.00M	2.84M
Total Liabilities	26.52M	27.33M	29.72M	46.34M	33.44M	33.47M
Stockholders Equity	6.57M	7.52M	22.30M	78.88M	104.36M	88.86M
Cash Flow
Free Cash Flow	-413.47K	-4.03M	-10.87M	-3.78M	2.51M	9.58M
Operating Cash Flow	-404.10K	-2.08M	-5.34M	4.03M	10.87M	15.41M
Investing Cash Flow	-730.20K	-1.93M	-5.84M	-9.35M	-14.29M	-5.95M
Financing Cash Flow	-274.60K	593.00K	5.35M	2.99M	8.34M	-8.60M

Aferian plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AFRN, the sentiment is Negative. The current price of 1.75 is below the 20-day moving average (MA) of 1.80, below the 50-day MA of 1.90, and below the 200-day MA of 2.76, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 15.91 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AFRN.

Aferian plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITV	73 Outperform	£3.07B	16.69	10.46%	6.17%	-3.07%	-54.90%
STVG	61 Neutral	£53.50M	10.26	―	9.87%	2.23%	-25.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TMG	49 Neutral	£17.67M	-6.72	-3.81%	―	-25.20%	78.55%
SBDS	42 Neutral	£3.63M	-0.99	-234.41%	―	14.64%	-9.38%
AFRN	41 Neutral	£1.95M	-0.46	-58.35%	―	-17.99%	92.79%

Aferian plc Corporate Events

Aferian Extends Banking Facilities Amid Ongoing Sale Exploration

Aferian plc has announced an extension to its $16.5 million secured banking facilities, moving the repayment deadline to December 12, 2025, as it continues to explore the sale of its Amino and 24i businesses or the entire company. The company is also engaged in a Formal Sale Process, although there is no certainty of any offers or sales. Aferian is managing cash flow and working capital carefully, with further updates expected in December 2025.

Aferian plc Explores Strategic Sale Amid Banking Extension

Aferian plc has announced an extension to its banking facilities with Barclays Bank, Bank of Ireland, and HSBC, pushing the repayment deadline to November 30, 2025. This extension allows Aferian to explore the sale of its Amino and 24i businesses or the entire company. The company has initiated a formal sale process, inviting expressions of interest from potential buyers. This move is part of a strategic review to potentially enhance shareholder value, although there is no certainty that a sale will occur. The company is also considering selling one or more of its subsidiaries, with FRP Advisory managing this M&A process.