Frontier IP Group Plc (GB:FIPP)
LSE:FIPP

Frontier IP (FIPP) AI Stock Analysis

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Frontier IP

(LSE:FIPP)

58Neutral
Frontier IP's stock faces significant financial performance challenges, particularly in revenue and profitability, weighing heavily on its score. Technical analysis suggests some short-term strength but overall weakness in the longer term. Valuation metrics are a concern due to negative earnings. However, positive corporate events provide a boost, indicating potential future growth and strategic advancements.

Frontier IP (FIPP) vs. S&P 500 (SPY)

Frontier IP Business Overview & Revenue Model

Company DescriptionFrontier IP Group Plc is a UK-based company that specializes in the commercialization of intellectual property. It collaborates with universities and research institutions to identify innovative technologies with strong commercial potential and helps to develop and bring them to market. The company operates across various sectors, including healthcare, engineering, and software, providing strategic and operational support to its portfolio companies.
How the Company Makes MoneyFrontier IP makes money primarily by taking equity stakes in spin-out companies that emerge from its university and research institution partnerships. The company provides these spin-outs with essential support in areas such as business development, strategic planning, and fundraising in exchange for equity. Revenue is generated when these companies succeed and Frontier IP can realize returns on its equity stakes through sales or licensing deals. Additionally, the company may earn fees for advisory services provided to its portfolio companies. The success of Frontier IP's revenue model heavily depends on the performance of its portfolio companies and the strength of its partnerships with academic institutions.

Frontier IP Financial Statement Overview

Summary
Frontier IP faces significant financial challenges. The income statement shows declining revenues and negative margins, indicating profitability issues. The balance sheet is robust with no debt, but declining asset values raise concerns. Cash flow remains a concern with persistent negative free cash flow, pointing to operational struggles.
Income Statement
45
Neutral
The company has experienced a decline in revenue growth, with a decrease from 2023 to 2024. Margins are largely negative, indicating operational challenges. The gross profit margin is negative, highlighting cost issues. The net profit margin has improved slightly from 2023 to 2024, but remains negative, indicating ongoing profitability challenges.
Balance Sheet
60
Neutral
The balance sheet is strong in terms of equity, with no debt, indicating a conservative financial structure. The equity ratio is high, reflecting a stable asset base supported by equity. However, the decline in total assets and stockholders' equity over time suggests potential asset management issues.
Cash Flow
50
Neutral
The company shows improved free cash flow from 2023 to 2024, but it remains negative, indicating cash outflows. The operating cash flow remains negative, showing the company is not generating sufficient cash from operations. The free cash flow to net income ratio is unfavorable, highlighting cash generation issues relative to reported earnings.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
372.00K358.00K372.00K329.00K362.00K404.00K
Gross Profit
362.00K-1.42M-1.15M-1.39M-1.17M-1.04M
EBIT
-3.34M-1.40M-4.42M10.88M10.23M4.16M
EBITDA
-2.48M-3.33M-2.89M-3.04M-2.07M-1.80M
Net Income Common Stockholders
-2.02M-1.13M-3.24M10.23M9.57M4.18M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.53M2.30M4.60M4.37M1.99M2.97M
Total Assets
16.46M45.09M45.99M50.08M38.87M26.08M
Total Debt
0.000.000.000.000.000.00
Net Debt
-2.53M-2.30M-4.60M-4.37M-1.99M-2.97M
Total Liabilities
128.00K315.00K452.00K1.39M445.00K210.00K
Stockholders Equity
16.34M44.77M45.54M48.70M38.42M25.87M
Cash FlowFree Cash Flow
-3.23M-2.83M-3.26M-3.01M-1.48M-1.76M
Operating Cash Flow
-3.22M-2.81M-3.25M-3.01M-1.47M-1.76M
Investing Cash Flow
-32.00K370.00K3.38M5.38M-1.69M-600.00K
Financing Cash Flow
138.00K136.00K98.00K0.002.18M3.86M

Frontier IP Technical Analysis

Technical Analysis Sentiment
Negative
Last Price21.50
Price Trends
50DMA
23.30
Negative
100DMA
25.36
Negative
200DMA
29.50
Negative
Market Momentum
MACD
0.61
Negative
RSI
57.46
Neutral
STOCH
78.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FIPP, the sentiment is Negative. The current price of 21.5 is below the 20-day moving average (MA) of 23.16, below the 50-day MA of 23.30, and below the 200-day MA of 29.50, indicating a bearish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FIPP.

Frontier IP Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$12.86B9.179.14%4.78%16.41%-10.11%
58
Neutral
£16.19M-8.99%-20.43%-104.66%
46
Neutral
£426.95M-0.51%59.93%97.07%
GBSYN
38
Underperform
£2.96M0.4856.96%-55.66%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:FIPP
Frontier IP
21.50
-18.50
-46.25%
GB:SYN
Oilex Ltd
0.02
-0.10
-83.33%
GB:GROW
Molten Ventures
234.00
-5.00
-2.09%

Frontier IP Corporate Events

Regulatory Filings and Compliance
Frontier IP CFO Executes Share Transaction to Maintain Holdings
Neutral
Apr 2, 2025

Frontier IP Group plc announced that its Chief Financial Officer, Jo Stent, executed a share transaction involving the sale and immediate repurchase of 53,571 ordinary shares. The transaction, conducted on the London Stock Exchange, was carried out to maintain her beneficial interest in the company unchanged. This move is part of the company’s compliance with the EU Market Abuse Regulation, reflecting transparency in managerial transactions, which may reassure stakeholders about the company’s governance practices.

Regulatory Filings and Compliance
Frontier IP Directors Engage in Share Transactions, Maintain Holdings
Neutral
Mar 31, 2025

Frontier IP Group plc announced that two of its directors, Jacqueline McKay and Matthew White, engaged in share transactions involving the sale and immediate repurchase of their shares for their SIPP, leaving their beneficial interests in the company unchanged. These transactions were disclosed in compliance with the EU Market Abuse Regulation, reflecting the company’s adherence to regulatory requirements and transparency in its operations.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Frontier IP Reports Interim Loss Amidst Strong Portfolio Progress
Neutral
Mar 26, 2025

Frontier IP Group plc reported a pre-tax loss of £1.6 million for the six months ending December 31, 2024, despite raising £3.3 million through fundraising efforts. The company and its portfolio made significant progress in commercial, funding, and technical areas, with several companies achieving key milestones, such as Pulsiv’s launch of an efficient USB-C charger and GraphEnergyTech’s collaboration on solar technology. The announcement highlights the resilience of Frontier IP’s portfolio in a challenging market environment, with strong interest from industry, government, and finance sectors in their innovative technologies.

Private Placements and FinancingBusiness Operations and Strategy
Frontier IP’s 2D Photonics Raises €25 Million to Advance Graphene Photonics
Positive
Mar 24, 2025

Frontier IP Group has announced that its portfolio company, 2D Photonics SpA, has successfully raised €25 million in a Series A funding round to advance the development of graphene photonics transceivers. This funding will enable the company to scale up production and establish a pilot manufacturing plant, positioning it at the forefront of next-generation optical technology. The investment, backed by major industry and financial institutions, underscores the potential of 2D Photonics’ technology to transform artificial intelligence and mobile communications by significantly reducing costs, improving energy efficiency, and increasing speeds. The funding also marks a strategic milestone for Frontier IP, as it converts its previous loans into equity in 2D Photonics, enhancing its stake in the company.

Product-Related AnnouncementsBusiness Operations and Strategy
Pulsiv Wins Global Energy Efficiency Award for Innovative USB-C Design
Positive
Mar 18, 2025

Frontier IP Group announced that its portfolio company, Pulsiv Limited, has won the first Global Energy Efficiency Award from the Power Sources Manufacturers Association (PSMA) for its innovative 65W USB-C design. This recognition highlights Pulsiv’s potential to revolutionize the power conversion industry with its high-efficiency technology, setting a benchmark for thermal performance and efficiency in fast-charging solutions. The award underscores the growing demand for energy-efficient electronic devices and strengthens Pulsiv’s position in the market, benefiting stakeholders by showcasing the company’s commitment to sustainable and efficient power solutions.

Private Placements and FinancingBusiness Operations and Strategy
Frontier IP’s GraphEnergyTech Collaborates to Innovate Solar Technology
Positive
Feb 25, 2025

Frontier IP’s portfolio company, GraphEnergyTech, has entered a collaboration with Taiwan Perovskite Solar Corporation, the Industrial Technology Research Institute, and the University of Cambridge to advance solar technology. The collaboration, backed by a £884,129 grant from Innovate UK, aims to develop commercial perovskite solar modules using GraphEnergyTech’s graphene electrodes, which are more sustainable and cost-effective than traditional metal electrodes. This initiative addresses the challenges of environmental degradation and resource depletion associated with current solar technologies, potentially positioning GraphEnergyTech as a leader in the renewable energy sector.

Product-Related AnnouncementsBusiness Operations and Strategy
Alusid’s Eco-Friendly Tiles Launched by Topps Tiles
Positive
Feb 18, 2025

Frontier IP announced that Topps Tiles plc has launched a new range of Alusid’s mass-produced floor tiles, Mas, across its UK retail chain. These tiles, made from up to 98.5% recycled industrial waste, significantly reduce carbon emissions and water usage compared to conventional tiles, aligning with Topps’ sustainability goals. This launch marks a major milestone for Alusid, expanding its market presence and reinforcing its partnership with Topps, while also supporting Frontier IP’s strategic aims in the sustainable building materials sector.

Frontier IP’s Alusid Expands Globally with New Distribution Deal
Jan 8, 2025

Frontier IP Group’s portfolio company Alusid Limited has signed its first international distribution agreement with FRONT Materials B.V. This partnership allows FRONT to exclusively distribute Alusid’s sustainable tiles in the Netherlands and non-exclusively in Europe and the US. This deal highlights the global potential of Alusid’s eco-friendly products, which are made from recycled industrial waste and have a significantly lower carbon footprint than traditional tiles. With existing clients like Topps Tiles and Starbucks EMEA, and talks with other distributors ongoing, Alusid is poised to expand its market presence in sustainable building materials.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.