Microlise Group Holdings Ltd. (SAAS) AI Stock Analysis

• Market Cap: £109.57M
• Dividend Yield: 2%
• Average Volume (3M): 131.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: 9.69%
• EPS Growth: -319.35%
• Country: UK
• Employees: 800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 115,945,950
• 10 Day Avg. Volume: 145,808
• 30 Day Avg. Volume: 131,257
• PEG Ratio: 0.24
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 20.30
• 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: £168.00
• Price Target Upside: 77.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: 105.00p ▲(11.11% Upside)

Microlise Group Holdings Ltd. has a solid financial foundation with strong revenue growth and cash flow generation. However, technical indicators are bearish, and the company faces profitability challenges. Positive corporate events, including strong financial performance and strategic appointments, provide optimism for future growth. The overall score reflects a balanced view of these factors, with a need for caution due to current technical and profitability concerns.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and successful product adoption, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and reducing reliance on external financing.

Balance Sheet Health

A low debt-to-equity ratio indicates minimal financial risk, providing stability and resilience against economic fluctuations.

Negative Factors

Profitability Challenges

Negative profitability metrics highlight operational inefficiencies, which could hinder long-term value creation if not addressed.

Negative Return on Equity

Negative return on equity suggests inefficient use of shareholder funds, potentially impacting investor confidence and future capital raising.

Negative Net Profit Margin

A negative net profit margin indicates challenges in converting revenue into profit, which could limit reinvestment and growth potential.

Microlise Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Microlise Group plc provides transport management technology solutions. The company offers SaaS platform that digitizes the business processes of enterprise organizations running logistics operations. Its hardware and software technology solutions capture and analyze real-time transport and logistics data events to allow fleet operators to enhance across a range of key performance indicators, including operating efficiency, greenhouse gas emissions, and safety standards. The company offers fleet telematics products, including fleet tracking, fleet utilization, driver performance, driver communications, trailer telematics, and temperature monitoring; fleet safety monitoring, multi-camera solutions, and vehicle health products; journey management products comprising schedule management, route management, planning and optimization, customer communications, and workforce and resource management; delivery management products, such as electronic proof of delivery and sub-contractor management. It also provides Smart Gateway device that communicates a range of vehicle data to its software platform; and DriveTab, a tablet that acts as the interface for driver communication, navigation, and feedback. It serves fleet operators in the original equipment manufacturer, haulage and logistics, retail and grocery, food manufacturing, food services, pharmaceuticals, post and parcel, construction, defence, and petrochemical markets. The company was founded in 1982 and is headquartered in Nottingham, the United Kingdom.

How the Company Makes Money

Microlise Group Holdings Ltd. generates revenue primarily through subscription fees for its SAAS products, which are offered on a tiered pricing model based on the size of the fleet and the features selected by the client. Additionally, the company earns income from professional services such as implementation, training, and ongoing support. Key revenue streams include annual subscriptions for software licenses, maintenance fees, and value-added services. Significant partnerships with transport and logistics companies enhance its market presence, while continuous investment in product development and customer retention strategies also contribute to its earnings.

Microlise Group Holdings Ltd. Financial Statement Overview

Summary

Microlise Group Holdings Ltd. demonstrates strong revenue growth and cash flow generation, which are positive indicators for future performance. However, profitability challenges are evident with negative net income and EBIT margins. The balance sheet is solid with low leverage, but the negative return on equity highlights the need for improved profitability. Overall, the company is positioned well for growth but must address profitability to enhance shareholder value.

Income Statement

The company shows a strong revenue growth rate of 19.65% in the latest year, indicating positive momentum. However, the net profit margin is negative at -2.58%, and EBIT margin is also negative, reflecting challenges in profitability. The gross profit margin is healthy at 65.43%, suggesting efficient cost management at the gross level.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.018, indicating minimal leverage and financial risk. However, the return on equity is negative at -2.86%, which is a concern for shareholders. The equity ratio is not explicitly calculated, but the high stockholders' equity suggests a stable financial position.

Cash Flow

The cash flow statement is robust, with a significant free cash flow growth rate of 78.12%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.26, showing a healthy conversion of income to cash. The free cash flow to net income ratio is 0.57, suggesting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.41M	79.47M	71.72M	63.21M	58.78M	56.96M
Gross Profit	52.76M	52.00M	43.58M	32.39M	29.06M	32.83M
EBITDA	6.90M	5.78M	8.92M	6.50M	6.87M	7.36M
Net Income	-787.00K	-2.05M	1.58M	1.35M	-1.48M	1.12M
Balance Sheet
Total Assets	131.66M	134.64M	131.18M	126.14M	121.34M	123.30M
Cash, Cash Equivalents and Short-Term Investments	11.16M	11.40M	16.80M	16.68M	13.21M	9.72M
Total Debt	2.12M	1.31M	1.55M	1.75M	1.71M	18.94M
Total Liabilities	59.69M	62.74M	55.51M	52.52M	49.79M	66.12M
Stockholders Equity	71.97M	71.90M	75.67M	73.47M	71.55M	57.19M
Cash Flow
Free Cash Flow	9.13M	5.51M	4.02M	6.39M	5.45M	4.46M
Operating Cash Flow	10.36M	9.70M	8.76M	9.45M	9.12M	6.85M
Investing Cash Flow	-4.81M	-11.00M	-7.29M	-5.06M	-4.67M	-3.39M
Financing Cash Flow	-3.36M	-4.06M	-1.34M	-915.00K	-1.28M	-3.81M

Microlise Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 94.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAAS, the sentiment is Negative. The current price of 94.5 is above the 20-day moving average (MA) of 94.10, below the 50-day MA of 106.47, and below the 200-day MA of 115.00, indicating a neutral trend. The MACD of -2.91 indicates Negative momentum. The RSI at 37.63 is Neutral, neither overbought nor oversold. The STOCH value of 60.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SAAS.

Microlise Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACSO	75 Outperform	£104.35M	14.38	5.30%	―	-3.95%	16.87%
APTD	72 Outperform	£163.94M	37.68	7.71%	1.92%	-6.63%	-7.88%
ELCO	68 Neutral	£109.62M	29.31	12.39%	0.79%	12.10%	27.35%
SAAS	63 Neutral	£109.57M	-138.97	-1.08%	2.00%	9.69%	-319.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NET	61 Neutral	£197.76M	47.35	9.59%	0.80%	22.80%	-32.13%
TRCS	61 Neutral	£90.01M	175.87	0.78%	0.80%	1.07%	11.25%

Microlise Group Holdings Ltd. Corporate Events

Microlise CEO Transfers Shareholding to New Custody Account

Microlise Group plc announced that its CEO, Nadeem Raza, transferred his entire shareholding of 58,032,442 ordinary shares to a new custody account, maintaining his 50.05% stake in the company. This move is a procedural change in the management of his shares and does not alter his ownership level, indicating stability in the company’s leadership structure.

The most recent analyst rating on (GB:SAAS) stock is a Hold with a £105.00 price target. To see the full list of analyst forecasts on Microlise Group Holdings Ltd. stock, see the GB:SAAS Stock Forecast page.

Microlise Group Reports FY25 Revenue Challenges Amid Market Disruptions

Microlise Group Plc has announced a trading update for FY25, revealing expected revenues below market expectations due to lower order volumes from global OEM customers and project delays in the UK. Despite these challenges, the company anticipates a 4.5% increase in annual recurring revenue and plans to implement cost-saving measures to enhance profitability. The appointment of a new Chief Technology Officer, Dean Garvey-North, aims to drive technological innovation and align with business objectives. The company remains optimistic about its long-term growth prospects, supported by a strong recurring revenue base and a refreshed market strategy.

The most recent analyst rating on (GB:SAAS) stock is a Hold with a £151.00 price target. To see the full list of analyst forecasts on Microlise Group Holdings Ltd. stock, see the GB:SAAS Stock Forecast page.