Smarttech247 Group PLC (S247) AI Stock Analysis

• Market Cap: £9.08M
• Dividend Yield: N/A
• Average Volume (3M): 42.17K
• Price to Earnings (P/E): 33.3
• Beta (1Y): 0.35
• Revenue Growth: 7.98%
• EPS Growth: N/A
• Country: UK
• Employees: 162
• Sector: Technology
• Sector Strength: 96
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 113,532,265
• 10 Day Avg. Volume: 29,348
• 30 Day Avg. Volume: 42,173
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £8.50
• Price Target Upside: 6.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: 8.50p ▲(6.25% Upside)

Smarttech247's overall stock score is driven by robust financial performance, particularly in revenue growth and a strong balance sheet. However, technical indicators are weak, suggesting bearish momentum. The high valuation presents a risk, offset by positive corporate events indicating strong market demand.

Smarttech247 Group PLC Business Overview & Revenue Model

Company Description

Smarttech247 Group PLC (S247) is a cybersecurity company specializing in providing advanced security solutions and services. The company operates in sectors such as cloud security, threat detection, and managed security services. Its core products and services include 24/7 security monitoring, incident response, and tailored cybersecurity strategies designed to protect businesses from evolving digital threats.

How the Company Makes Money

Smarttech247 Group PLC generates revenue primarily through its subscription-based managed security services, which offer continuous monitoring and threat detection for client networks. The company charges fees for its cybersecurity consulting services, including risk assessments and incident response planning. Additionally, Smarttech247 partners with technology providers to deliver integrated security solutions, which may contribute to its earnings. Key revenue streams also include licensing fees from proprietary software tools designed to enhance cybersecurity measures for enterprises.

Smarttech247 Group PLC Financial Statement Overview

Summary

Smarttech247 Group PLC exhibits strong revenue growth and improved profitability, supported by a robust balance sheet with low leverage. However, the decline in free cash flow and cash outflows exceeding earnings highlight liquidity challenges, necessitating improved cash management.

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

Smarttech247 Group PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8 is below the 20-day moving average (MA) of 8.07, below the 50-day MA of 8.46, and below the 200-day MA of 8.81, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 32.58 is Neutral, neither overbought nor oversold. The STOCH value of 88.38 is Negative, 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	£12.10M	11.56	13.09%	4.21%	5.35%	-8.63%
S247	64 Neutral	£9.08M	33.33	2.83%	―	7.98%	―
Sector *	62 Neutral	£504.16M	27.91	0.75%	2.83%	3.82%	-18.17%
TIDE	58 Neutral	£4.27M	―	-1.14%	―	―	―
ZOO	50 Neutral	£13.76M	―	-33.64%	―	20.12%	64.40%
PEN	45 Neutral	£9.51M	―	-28.36%	―	-11.33%	-139.92%

Smarttech247 Group PLC Corporate Events

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.