Image Scan Holdings (IGE) AI Stock Analysis

• Market Cap: £1.85M
• Dividend Yield: N/A
• Average Volume (3M): 70.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -16.19%
• EPS Growth: -600.00%
• Country: UK
• Employees: 17
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): <0.01
• Shares Outstanding: 136,854,580
• 10 Day Avg. Volume: 41,598
• 30 Day Avg. Volume: 70,584
• PEG Ratio: 0.26
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 1.24
• P/FCF Ratio: -256.95
• 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: 55 Neutral
• Price Target: 1.50p ▼(-18.92% Downside)

The overall stock score reflects strong financial stability and improved profitability, but is weighed down by technical indicators showing bearish trends and valuation concerns due to a negative P/E ratio. Addressing cash flow issues and reversing revenue decline are critical for future performance.

Positive Factors

Financial Stability

A strong balance sheet with low leverage provides Image Scan Holdings with financial stability, allowing for potential growth opportunities and resilience against economic fluctuations.

Profitability Improvement

Improved profitability indicates effective cost management and operational efficiency, which can support sustainable growth and shareholder value over the long term.

Strong Gross Profit Margin

A strong gross profit margin suggests that Image Scan Holdings is effectively managing its production costs, which can enhance competitive positioning and profitability.

Negative Factors

Revenue Decline

Declining revenue indicates potential challenges in market demand or competitive pressures, which could impact the company's ability to sustain growth and profitability.

Cash Flow Challenges

Negative free cash flow growth highlights cash management challenges, which can limit the company's ability to invest in growth opportunities and meet financial obligations.

Operating Cash Flow Issues

A low operating cash flow to net income ratio suggests inefficiencies in converting earnings into cash, potentially affecting liquidity and operational flexibility.

Image Scan Holdings Business Overview & Revenue Model

Company Description

Image Scan Holdings Plc manufactures and sells portable X-ray systems for security and counter terrorism applications in the United Kingdom, Europe, the Middle East, Africa, Asia, and the Americas. Its security products include portable systems, such as ThreatScan-LS1, ThreatScan-LS3, and ThreatScan-LSC X-ray systems; mail and baggage screening products, including AXIS-CXi cabinet based x-ray systems and AXIS conveyor systems; AXIS archway systems walk-through metal detectors; and vehicle screening systems which includes SVXi, ThreatScan, and ThreatSpect software X-ray systems for high security building and facility, explosive ordnance disposal, border control and custom, mass transit locations, stadia and events, and mail room screening applications. The company's industrial products include production line systems, such as MDXi-NT, a high-resolution turnkey X-ray inspection system; laboratory systems, which comprise MDXi, cabinet based systems for stand-alone use; ThreatScan-LS1 X-ray scanning systems; and X-ray tubes and generators for emission control solutions and other applications. It serves its products to police, military, security services, bomb disposal teams, prisons, ports, airports, cargo handlers, freight forwarders, corporate HQs, mail rooms, and stadia and events operators. Image Scan Holdings Plc was incorporated in 1995 and is based in Barrow-upon-Soar, the United Kingdom.

How the Company Makes Money

Image Scan Holdings generates revenue primarily through the sale of its X-ray inspection systems and related services. The company has a diverse revenue model that includes direct sales to government and commercial clients, as well as service contracts for maintenance and support of their systems. Key revenue streams include the initial sale of imaging equipment, ongoing service agreements, and software licensing fees. Additionally, IGE may benefit from partnerships with security agencies and infrastructure operators, which can lead to bulk orders or long-term contracts. The company's focus on innovation and responsiveness to market demands also plays a significant role in driving its earnings.

Image Scan Holdings Financial Statement Overview

Summary

Image Scan Holdings shows a strong balance sheet with low leverage and a solid equity base, indicating financial stability. Profitability has improved, but revenue decline and cash flow challenges need addressing to sustain growth.

Income Statement

The company's gross profit margin has remained strong at around 52.8% in the latest year, indicating efficient cost management. Net profit margin improved significantly from negative figures in prior years to 7.2%, reflecting enhanced profitability. However, revenue has declined by 3.4% compared to the previous year, suggesting potential challenges in market growth. EBIT and EBITDA margins are modest at 7.0% and 11.3%, respectively, showing room for operational efficiency improvement.

Balance Sheet

The balance sheet is healthy with a low debt-to-equity ratio of 0.09, indicating low leverage and financial stability. Return on equity stands at 12.0%, which is a positive indicator of profitability. The equity ratio is 63.8%, reinforcing financial stability and a strong equity base. These metrics reflect a solid financial position with potential for leveraging equity for growth.

Cash Flow

The company experienced a negative free cash flow growth rate, moving from a positive free cash flow last year to negative this year, signaling cash management challenges. The operating cash flow to net income ratio is low at 0.30, indicating that cash generation from operations is not in sync with net income. However, the free cash flow to net income ratio is slightly negative, suggesting a need for improved cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.15M	2.86M	2.96M	2.00M	2.87M	3.48M
Gross Profit	1.15M	1.51M	1.44M	1.08M	1.51M	1.72M
EBITDA	-650.00	322.35K	209.35K	-268.24K	259.43K	172.53K
Net Income	-95.99K	207.01K	123.94K	-271.52K	239.90K	137.96K
Balance Sheet
Total Assets	1.78M	2.69M	2.42M	2.42M	2.68M	2.24M
Cash, Cash Equivalents and Short-Term Investments	512.00K	911.47K	958.47K	689.54K	1.19M	1.41M
Total Debt	93.00K	155.66K	164.31K	201.75K	232.95K	88.52K
Total Liabilities	487.00K	973.30K	910.62K	1.03M	1.03M	829.90K
Stockholders Equity	1.30M	1.72M	1.51M	1.39M	1.65M	1.41M
Cash Flow
Free Cash Flow	-109.47K	-13.85K	305.28K	-469.25K	-127.11K	759.42K
Operating Cash Flow	-108.87K	61.39K	429.57K	-290.05K	2.36K	769.01K
Investing Cash Flow	-95.24K	-64.51K	-117.65K	-179.21K	-129.47K	-9.59K
Financing Cash Flow	-47.88K	-43.88K	-43.00K	-27.63K	-95.96K	9.59K

Image Scan Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IGE, the sentiment is Positive. The current price of 1.85 is above the 20-day moving average (MA) of 1.70, above the 50-day MA of 1.51, and above the 200-day MA of 1.64, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 88.02 is Negative, neither overbought nor oversold. The STOCH value of 66.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:IGE.

Image Scan Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	69 Neutral	£46.53M	10.70	10.49%	1.69%	21.43%	44.70%
CSSG	68 Neutral	£10.95M	13.90	5.08%	2.02%	10.26%	45.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NWT	60 Neutral	£11.06M	16.64	7.90%	―	3.41%	393.71%
IGE	55 Neutral	£1.85M	-19.29	-18.29%	―	-16.19%	-600.00%
THRU	45 Neutral	£4.69M	-0.38	-71.37%	―	-21.55%	10.59%
PEG	45 Neutral	£4.55M	-8.93	-8.06%	―	63.81%	71.62%

Image Scan Holdings Corporate Events

Image Scan Holdings Faces Challenges Amid Delays and Market Uncertainty

Image Scan Holdings PLC reported disappointing interim results for the first half of 2025, with a significant drop in order intake and revenue compared to the previous year. The company’s performance was impacted by delays in a major defense contract and geopolitical uncertainties affecting customer budgets and decisions. Despite these challenges, Image Scan continues to engage in extensive marketing activities and has received a significant post-period order, indicating strong market interest in its newer products. The company remains optimistic about its opportunity pipeline and is focused on cost management and promoting its product range to capitalize on future opportunities.

Braveheart Investment Group Adjusts Stake in Image Scan Holdings

Image Scan Holdings PLC has announced a change in its major shareholdings, as Braveheart Investment Group PLC has adjusted its voting rights in the company. The notification reveals that Braveheart’s voting rights have decreased from 10.28% to 9.95%, indicating a slight reduction in their stake. This adjustment in holdings could influence the company’s shareholder dynamics and potentially impact future decision-making processes.