Smarttech247 Group PLC (S247) AI Stock Analysis

• Market Cap: £3.12M
• Dividend Yield: N/A
• Average Volume (3M): 275.39K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.32
• Revenue Growth: 7.98%
• EPS Growth: N/A
• Country: UK
• Employees: 162
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 113,532,265
• 10 Day Avg. Volume: 670,944
• 30 Day Avg. Volume: 275,391
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £9.00
• Price Target Upside: 227.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: 9.00p ▲(227.27% Upside)

Smarttech247 Group PLC's overall score is driven by strong financial performance, particularly in revenue growth and balance sheet strength. However, technical indicators suggest caution due to overbought conditions, and the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events limits further insights.

Smarttech247 Group PLC Business Overview & Revenue Model

Company Description

Smarttech247 Group plc, an AI enhanced cybersecurity company that provides automated managed detection and response (MDR) services in the United Kingdom, Ireland, Romania, Poland, and the United States. Its platform provides threat intelligence solutions with MDR to provide actionable insights, threat detection, investigation, and response. The company provides NoPhish, an email parsing tool that detects and responds to phishing attacks in real time; VisionX platform to manage detection and response for better security; and Threathub solution for continuous threat exposure management. It offers MDR solutions for security assessments and compliance. The company serves pharmaceutical, healthcare, automotive, universities, and fintech industries, as well as public sector. Smarttech247 Group plc was incorporated in 2022 and is based in London, the United Kingdom.

How the Company Makes Money

Smarttech247 Group PLC generates revenue primarily through its subscription-based services and managed security solutions. The company's revenue model is centered on providing ongoing cybersecurity support and monitoring services, which typically involve monthly or annual fees. Key revenue streams include contracts for managed security services, sales of cybersecurity software solutions, and consulting services aimed at helping organizations assess and improve their security posture. Additionally, S247 may benefit from strategic partnerships with technology vendors and cybersecurity firms, which can enhance its service offerings and attract new clients, further contributing to its earnings.

Smarttech247 Group PLC Financial Statement Overview

Summary

Smarttech247 Group PLC shows strong revenue growth and profitability improvement. The balance sheet is robust with low leverage, but significant cash flow challenges exist, particularly with negative free cash flow, which could impact liquidity.

Income Statement

Smarttech247 Group PLC has demonstrated a positive revenue growth rate of approximately 8.16% from 2023 to 2024, indicating a healthy expansion. The gross profit margin stands at 37.77% for the latest year, showing strong profitability in its core operations. However, the net profit margin improved to 1.01% from a negative margin last year, indicating progress towards profitability. The EBIT and EBITDA margins, although positive, are relatively low at 1.73% and 6.04%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.02, signifying low financial leverage and a conservative capital structure. Return on Equity (ROE) improved significantly to 1.08% from a negative position, which is a positive trend. The equity ratio is strong at 68.89%, indicating a substantial equity stake in the total asset base, which provides stability.

Cash Flow

The cash flow performance shows a decline in free cash flow from positive $411,000 last year to negative $2,588,000, which is concerning. The operating cash flow to net income ratio is 6.87, highlighting strong cash generation relative to net income. However, free cash flow to net income is negative, reflecting cash outflows exceeding earnings, which could pose liquidity challenges if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.11M	13.17M	12.18M	8.64M	7.23M	4.82M
Gross Profit	2.56M	4.98M	5.15M	5.54M	4.07M	3.29M
EBITDA	593.87K	796.00K	853.00K	1.98M	1.73M	1.18M
Net Income	277.51K	133.00K	-167.00K	1.38M	1.14M	720.02K
Balance Sheet
Total Assets	12.90M	17.80M	18.07M	11.57M	9.47M	3.90M
Cash, Cash Equivalents and Short-Term Investments	1.61M	3.34M	6.06M	2.36M	3.21M	950.57K
Total Debt	213.34K	269.00K	351.00K	2.41M	2.32M	461.37K
Total Liabilities	2.92M	5.53M	6.58M	7.04M	6.34M	1.92M
Stockholders Equity	9.98M	12.27M	11.48M	3.80M	2.67M	1.99M
Cash Flow
Free Cash Flow	778.92K	-2.59M	411.00K	-767.00K	1.50M	523.16K
Operating Cash Flow	805.89K	914.00K	3.15M	705.00K	2.07M	566.52K
Investing Cash Flow	-2.89M	-3.50M	-2.73M	-1.46M	-1.61M	-43.36K
Financing Cash Flow	-69.67K	-124.00K	3.29M	-101.00K	1.80M	-128.36K

Smarttech247 Group PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:S247, the sentiment is Negative. The current price of 2.75 is below the 20-day moving average (MA) of 8.21, below the 50-day MA of 8.16, and below the 200-day MA of 8.38, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 1.58 is Positive, neither overbought nor oversold. The STOCH value of 63.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:S247.

Smarttech247 Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARC	73 Outperform	£13.91M	14.73	―	3.61%	6.76%	-11.53%
S247	67 Neutral	£3.12M	11.46	2.83%	―	7.98%	―
TIDE	46 Neutral	£3.91M	-46.12	-15.78%	―	―	―
ZOO	45 Neutral	£12.63M	-2.01	-40.26%	―	20.12%	64.40%
PEN	40 Underperform	£10.22M	-2.11	-30.86%	―	-31.21%	-292.31%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Smarttech247 Group PLC Corporate Events

Smarttech247 Achieves Elite Partner Status with Splunk

Smarttech247 Group PLC has been elevated to Elite Partner status in the Splunk Partnerverse Programme, enhancing its ability to deliver complex Splunk deployments and increasing its visibility among Splunk’s client base. This promotion signifies Smarttech247’s technical expertise and its strategic partnership with Splunk, which aims to help organizations enhance their cyber resilience and maximize their Splunk investments.

Smarttech247 Secures €1.53 Million in New Contracts and Renewals

Smarttech247 Group PLC has announced recent contract wins and renewals totaling approximately €1.53 million, spanning six months to three years. These contracts, including a significant deal with a major Irish hospital group and a global aviation services business, underscore the effectiveness of Smarttech247’s VisionX MDR platform and NoPhish email security solution. The contracts are expected to bolster the company’s annual recurring revenue and highlight its commitment to enhancing cybersecurity across diverse industries.

Smarttech247 Finance Director Acquires Shares Post-Conduity Liquidation

Smarttech247 Group PLC announced that Nicholas Lee, the Finance Director, received 16,019 Ordinary Shares as a result of the distribution of Conduity Capital plc’s shareholding in Smarttech247 following its voluntary liquidation. This transaction gives Nicholas Lee a 0.01% stake in the company’s total voting rights, aligning with EU Market Abuse Regulation disclosure requirements.

Smarttech247 Secures $4.2 Million in Contracts, Boosting ARR and Platform Expansion

Smarttech247 Group PLC has announced securing $4.2 million in new and renewed contracts, which will boost its Annual Recurring Revenue (ARR) and enhance its VisionX platform. These contracts, spanning one to three years, include renewals and expansions with clients in the pharmaceutical, automotive, financial, and industrial sectors, reflecting strong demand for Smarttech247’s cybersecurity services. The company’s strategy of focusing on long-term agreements and upselling additional services is reinforced by these contract wins, positioning it for future growth in a market increasingly prioritizing cybersecurity.