Microlise Group Holdings Ltd. (SAAS) AI Stock Analysis

• Market Cap: £111.89M
• Dividend Yield: 1.91%
• Average Volume (3M): 131.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• 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: 74.09% 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 ▲(8.81% 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 Holdings Ltd. is a leading provider of transport management solutions, specializing in software-as-a-service (SAAS) offerings that enhance fleet operations, driver management, and logistics efficiency. The company serves various sectors including road transport, logistics, and supply chain management, delivering innovative technology solutions that facilitate real-time tracking, data analytics, and operational optimization.

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.

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

Microlise Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 96.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 96.5 is below the 20-day moving average (MA) of 106.32, below the 50-day MA of 115.13, and below the 200-day MA of 115.72, indicating a bearish trend. The MACD of -6.86 indicates Positive momentum. The RSI at 30.12 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 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	£126.67M	17.40	5.30%	―	-3.95%	16.87%
NET	73 Outperform	£188.83M	46.12	9.59%	0.81%	22.80%	-32.13%
APTD	72 Outperform	£163.62M	37.55	7.71%	1.86%	-6.63%	-7.88%
ELCO	68 Neutral	£111.71M	29.87	12.39%	0.79%	12.10%	27.35%
SAAS	63 Neutral	£111.89M	-141.91	-1.08%	1.91%	9.69%	-319.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TRCS	61 Neutral	£90.44M	176.74	0.78%	0.84%	1.07%	11.25%

Microlise Group Holdings Ltd. Corporate Events

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.

Microlise Group Reports Strong H1 2025 Financial Performance

Microlise Group Plc reported strong financial performance for the first half of 2025, with a 12.6% increase in revenue to £44.1m and a notable rise in adjusted EBITDA by 19% to £6.2m. The company achieved significant growth in recurring revenue and ARR, supported by new customer acquisitions and contract renewals, including major deals in the UK, Ireland, and Australia. The company also enhanced its product offerings and maintained a low customer churn rate of 0.5%. Despite challenges in the automotive sector, Microlise remains optimistic about its growth prospects, driven by a robust order book and strategic initiatives.

Microlise Group Appoints New Nominated Adviser and Broker

Microlise Group plc has appointed Canaccord Genuity Limited as its Nominated Adviser and Sole Broker, effective immediately. This strategic move is expected to bolster the company’s market positioning and enhance its financial advisory capabilities, potentially impacting its operations and stakeholder relations positively.

Microlise Group Plc to Announce Interim Results for H1 2025

Microlise Group Plc has announced the release of its interim results for the first half of 2025, scheduled for 25 September 2025. The company will host presentations for equity analysts and investors to discuss these results, highlighting its commitment to transparency and stakeholder engagement. This announcement underscores Microlise’s proactive approach in maintaining investor relations and its strategic positioning within the transport management software industry.