Silver Bullet Data Services Group plc (SBDS) AI Stock Analysis

• Market Cap: £4.11M
• Dividend Yield: N/A
• Average Volume (3M): 187.14K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.21
• Revenue Growth: 14.64%
• EPS Growth: -9.38%
• Country: UK
• Employees: 68
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 19,127,113
• 10 Day Avg. Volume: 106,388
• 30 Day Avg. Volume: 187,137
• PEG Ratio: 0.25
• Price to Book (P/B): 7.53
• Price to Sales (P/S): 1.16
• P/FCF Ratio: -8.17
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: 21.00p ▲(10.53% Upside)

The score is primarily constrained by weak financial fundamentals—ongoing losses, negative operating cash flow, and high leverage—despite revenue growth and improving free cash flow. Technicals are mixed with a weak longer-term trend, and valuation is hindered by negative earnings and no dividend support.

Positive Factors

Recurring, diversified revenue streams

A subscription-heavy, multi-stream model (platform subscriptions, consulting, licensing, training, long-term contracts) provides durable, predictable revenue and cross-sell opportunities. This reduces customer concentration risk and supports steady ARR growth and investment planning over quarters.

High gross margins indicating product leverage

Sustained ~76% gross margins point to a software- and data-driven cost base with high incremental economics. That structural margin allows the company to invest in R&D and sales to scale without proportionally increasing COGS, supporting long-term operating leverage if fixed costs are controlled.

Consistent revenue growth

Continued top-line growth demonstrates market demand and product-market fit across finance, healthcare and retail segments. Persistent revenue expansion provides a foundation for scale, margin improvement, and eventual operating profitability if the company converts growth into sustained cash generation.

Negative Factors

High financial leverage

A D/E of 3.06 signals heavy reliance on debt financing, raising interest and refinancing risks. In the context of ongoing losses and negative operating cash flow, leverage narrows financial flexibility, constrains strategic investments, and increases the chance of liquidity stress under adverse market conditions.

Negative operating cash flow

Persistent negative operating cash flow means the core business isn't yet self-funding day-to-day operations. Even with improved free cash flow metrics, negative OCF forces reliance on financing or asset sales to fund growth and debt service, making capital structure sustainability a multi-quarter risk.

Ongoing operating losses and negative ROE

Negative EBIT, net margins and a negative ROE indicate the company is destroying shareholder capital and not yet converting revenue into profits. This undermines retained earnings, limits reinvestment without external funding, and prolongs the path to sustainable returns for investors unless operating efficiency improves.

Silver Bullet Data Services Group plc Business Overview & Revenue Model

Company Description

Silver Bullet Data Services Group PLC provides data and digital transformation services and tools for marketing and advertising purposes in the United Kingdom, rest of Europe, and internationally. The company was formerly known as Silver Bullet Data Services Group Limited and changed its name to Silver Bullet Data Services Group PLC in June 2021. Silver Bullet Data Services Group PLC was incorporated in 2013 and is headquartered in London, the United Kingdom.

How the Company Makes Money

SBDS generates revenue through multiple streams, primarily by offering subscription-based data analytics platforms and consulting services tailored to meet the specific needs of its clients. The company also earns income from licensing its proprietary software tools and providing training and support services. Significant partnerships with technology firms and industry leaders enhance its service offerings and market reach, contributing to its earnings. Additionally, SBDS engages in long-term contracts with clients, ensuring a steady flow of recurring revenue.

Silver Bullet Data Services Group plc Financial Statement Overview

Summary

Revenue is growing (+9.4% latest year) and gross margin is strong (~76%), but profitability is still negative (negative EBIT and net margins). Leverage is high (debt-to-equity 3.06) with negative ROE, and operating cash flow remains negative despite improved free cash flow growth.

Income Statement

The company shows a consistent increase in revenue over the years, with a 9.4% growth in the latest year. However, profitability remains a significant concern, with negative net profit margins and EBIT margins indicating ongoing losses. The gross profit margin is relatively strong at around 76%, suggesting efficient cost management at the gross level, but this is overshadowed by high operating expenses leading to negative EBIT and net income.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.06, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses and poor returns for shareholders. The equity ratio is low, suggesting a heavy reliance on debt financing. These factors highlight financial instability and potential risk in the company's capital structure.

Cash Flow

The cash flow statement shows improvement in free cash flow growth, with a 60.4% increase, but operating cash flow remains negative. The free cash flow to net income ratio is above 1, indicating that the company is generating more cash than its net losses, which is a positive sign. However, the negative operating cash flow to net income ratio suggests challenges in converting revenue into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.82M	9.37M	8.36M	5.82M	3.81M	2.79M
Gross Profit	549.59K	7.13M	6.36M	4.22M	2.79M	1.97M
EBITDA	-1.77M	-1.61M	-2.12M	-6.56M	-8.04M	-4.97M
Net Income	-3.35M	-2.90M	-3.17M	-7.22M	-8.51M	-5.12M
Balance Sheet
Total Assets	10.02M	9.12M	10.36M	10.79M	12.55M	19.10M
Cash, Cash Equivalents and Short-Term Investments	1.11M	275.49K	677.86K	1.35M	3.69M	11.77M
Total Debt	5.25M	4.43M	3.05M	1.84M	159.71K	188.57K
Total Liabilities	9.88M	7.67M	6.37M	4.78M	3.32M	3.68M
Stockholders Equity	129.55K	1.45M	3.99M	6.00M	9.23M	15.42M
Cash Flow
Free Cash Flow	-1.59M	-1.34M	-2.40M	-6.28M	-8.72M	-4.47M
Operating Cash Flow	-1.56M	-1.11M	-2.16M	-5.14M	-7.22M	-3.39M
Investing Cash Flow	-175.79K	-227.49K	-236.47K	-1.14M	-1.50M	-1.08M
Financing Cash Flow	2.05M	933.32K	1.73M	3.95M	11.76M	4.87M

Silver Bullet Data Services Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.00
• 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:SBDS, the sentiment is Negative. The current price of 19 is below the 20-day moving average (MA) of 23.15, below the 50-day MA of 21.68, and below the 200-day MA of 27.46, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.31 is Neutral, neither overbought nor oversold. The STOCH value of 28.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SBDS.

Silver Bullet Data Services Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YOU	75 Outperform	£282.28M	20.90	7.16%	3.68%	15.99%	―
SYS1	69 Neutral	£29.44M	10.40	21.43%	2.29%	3.32%	-10.58%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DNM	57 Neutral	£4.20M	10.00	4.93%	―	―	―
EBQ	48 Neutral	£17.93M	-1.43	-37.24%	―	-0.79%	-100.22%
SBDS	42 Neutral	£4.11M	-1.12	-234.41%	―	14.64%	-9.38%
MIRI	40 Neutral	£1.28M	-0.02	-114.93%	―	―	―