BATM Advanced Communications (BVC) AI Stock Analysis

• Market Cap: £72.74M
• Dividend Yield: N/A
• Average Volume (3M): 234.89K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -6.71%
• EPS Growth: -8020.00%
• Country: UK
• Employees: 867
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): <0.01
• Shares Outstanding: 436,874,180
• 10 Day Avg. Volume: 197,353
• 30 Day Avg. Volume: 234,887
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -22.81
• 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: 60 Neutral
• Price Target: 19.00p ▲(14.11% Upside)

BATM Advanced Communications' overall stock score is primarily influenced by its financial challenges, which are offset by positive technical indicators and strategic corporate events. The company's valuation remains a concern due to negative earnings, but recent strategic moves and positive market momentum provide a balanced outlook.

Positive Factors

Strong Cash Position

A strong cash position provides financial flexibility, allowing BATM to invest in R&D and manage operations effectively despite current challenges.

Innovative Technology

Innovation in technology enhances BATM's competitive edge, enabling it to attract new clients and maintain relevance in a fast-evolving tech landscape.

Prudent Leverage Management

Prudent leverage management ensures BATM can sustain operations without excessive debt burden, supporting long-term financial health.

Negative Factors

Declining Revenue

A decline in revenue indicates potential market challenges and could impact the company's ability to sustain growth and profitability.

Negative Cash Flow

Negative cash flow suggests operational inefficiencies and could hinder BATM's ability to invest in growth opportunities or manage unforeseen expenses.

Profitability Challenges

Decreasing profit margins highlight operational inefficiencies, which could undermine BATM's ability to generate sustainable profits and maintain competitive pricing.

BATM Advanced Communications Business Overview & Revenue Model

Company Description

BATM Advanced Communications Ltd., together with its subsidiaries, provides real-time technologies for networking solutions and bio-medical systems in Israel, the United States, and Europe. It operates in Networking and Cyber, and Bio-Medical divisions. The Networking and Cyber division is involved in the research and development, production, and marketing of data communication products, including network function virtualization, carrier ethernet and MPLS access solutions, and cyber network monitoring. It also offers software services, such as training and technical support, laboratory service and maintenance; and construction contracts. The Bio-Medical division engages in the research and development, production, marketing, and distribution of medical products, such as laboratory diagnostics and sterilization equipment. This division offers molecular biology diagnostics; provides solutions to treat pathogenic and medical waste in laboratories and hospitals, as well as for pharmaceutical manufacturing plants and agricultural applications; and distributes diagnostic equipment and medical supplies of various brands. BATM Advanced Communications Ltd. has a collaboration with Novamed Ltd for the joint development and marketing of a home-use testing kit for COVID-19. The company was founded in 1992 and is headquartered in Hod Hasharon, Israel.

How the Company Makes Money

BATM Advanced Communications generates revenue through multiple streams, primarily by selling its advanced networking and cybersecurity products to businesses and governmental organizations. The company earns money from direct sales of hardware, software licenses, and comprehensive service contracts that often include maintenance and support. Additionally, BATM benefits from strategic partnerships with telecom operators and technology providers, which enable the company to expand its market reach and enhance its product offerings. Revenue is also bolstered by ongoing service agreements and upgrades, as clients seek to keep pace with evolving technology and cybersecurity threats.

BATM Advanced Communications Financial Statement Overview

Summary

BATM Advanced Communications faces financial challenges with declining revenues and profitability issues, as indicated by negative margins and cash flow deficits. Despite a stable balance sheet with manageable debt levels, operational inefficiencies need to be addressed.

Income Statement

BATM Advanced Communications experienced a significant decline in revenue from 2020. The gross profit margin has been decreasing, with a negative net profit margin in recent years, indicating profitability challenges. The company showed negative EBIT and EBITDA margins for the latest year, reflecting operational inefficiencies.

Balance Sheet

The company maintains a low debt-to-equity ratio, suggesting prudent leverage management. However, the equity ratio has declined, indicating a decrease in equity relative to total assets. ROE has turned negative recently due to net losses, but the company still holds a strong cash position relative to its debt obligations.

Cash Flow

Free cash flow has been negative recently, showing a concerning trend of cash outflow exceeding inflow. The operating cash flow to net income ratio turned negative, reflecting cash flow challenges even as the company faces net losses. However, the company previously demonstrated the ability to generate positive cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.66M	117.34M	116.73M	116.12M	140.04M	183.57M
Gross Profit	37.91M	36.80M	38.30M	37.96M	51.06M	60.71M
EBITDA	-864.00K	972.00K	8.01M	8.12M	31.06M	19.84M
Net Income	-26.02M	-22.30M	-193.00K	244.00K	14.34M	9.79M
Balance Sheet
Total Assets	151.62M	149.16M	174.63M	175.18M	193.16M	200.11M
Cash, Cash Equivalents and Short-Term Investments	27.03M	31.57M	40.76M	44.17M	67.76M	53.38M
Total Debt	9.16M	8.65M	9.08M	9.98M	10.28M	16.72M
Total Liabilities	52.24M	56.18M	55.19M	61.18M	69.03M	81.34M
Stockholders Equity	100.77M	94.06M	120.34M	115.07M	127.42M	122.59M
Cash Flow
Free Cash Flow	-3.39M	-5.06M	2.64M	-7.25M	2.30M	14.74M
Operating Cash Flow	308.00K	-1.65M	5.01M	-2.78M	5.59M	18.46M
Investing Cash Flow	-4.00M	-1.22M	-6.12M	-16.34M	15.07M	-5.48M
Financing Cash Flow	-3.23M	-2.61M	-2.16M	-7.05M	-4.94M	-3.25M

BATM Advanced Communications Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BVC, the sentiment is Neutral. The current price of 16.65 is below the 20-day moving average (MA) of 17.28, below the 50-day MA of 17.23, and above the 200-day MA of 16.20, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 34.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BVC.

BATM Advanced Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EKF	67 Neutral	£110.85M	18.89	8.71%	―	-1.43%	28.57%
BVC	60 Neutral	£72.74M	-4.10	-6.46%	―	-6.71%	-8020.00%
DXRX	57 Neutral	£108.72M	-71.39	-3.95%	―	31.83%	46.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CNSL	50 Neutral	£4.64M	3.42	13.26%	―	-10.20%	714.29%
ABDX	45 Neutral	£16.07M	-6.74	-90.48%	―	37.39%	-126.19%
RENX	37 Underperform	£25.78M	-0.41	425.97%	―	-4.48%	61.09%

BATM Advanced Communications Corporate Events

BATM Secures Major Order for 10G Network Upgrade

BATM Advanced Communications has secured a $670,000 order to supply its 10G Carrier Ethernet and aggregation solutions to a leading U.S. internet services provider. This order is part of the provider’s initiative to upgrade its network from 1G to 10G, enhancing connectivity in challenging environments and supporting advanced applications. BATM’s solutions, chosen for their reliability and automation, are expected to expand the provider’s service reach and performance, potentially leading to further collaborations.

BATM Announces AGM and Strategic Leadership Changes

BATM Advanced Communications has announced its upcoming Annual General Meeting (AGM) and significant directorate changes. The AGM will include a special resolution for the sale of its subsidiary, AMS, as part of a strategic shift to focus on core, high-margin activities. The company is also appointing new directors to strengthen its leadership team, with notable industry veterans joining the board. These changes are expected to enhance BATM’s operational focus and drive shareholder value.

BATM Advanced Communications Divests Romanian Subsidiary to Focus on Core Strengths

BATM Advanced Communications has entered into an agreement to sell its Romanian subsidiary, A.M.S 2000 Trading Impex SRL, to Dr. Zvi Marom in exchange for his significant shareholding in BATM. This move aligns with BATM’s strategy to divest non-core assets and concentrate on its core areas of networks, cybersecurity, and diagnostics, aiming to enhance shareholder value and streamline operations.

BATM Announces Directorate Change with Harel Locker’s Retirement

BATM Advanced Communications announced the retirement of Harel Locker from his role as an external director after completing his third three-year term. Prof. Varda Shalev will temporarily assume the role of Interim Chair of the Audit Committee. This change in the board may impact the company’s governance structure as they prepare to appoint a new external director.