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Seeing Machines Ltd (GB:SEE)
LSE:SEE

Seeing Machines (SEE) AI Stock Analysis

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Seeing Machines

(LSE:SEE)

35Underperform
Seeing Machines' stock is facing significant challenges, primarily due to financial instability and negative technical indicators. The company is unprofitable, with high leverage and cash flow issues, while bearish technical signals further dampen investor confidence. Although the earnings call presented some growth opportunities, the risks outweigh the positives, resulting in a low overall stock score.
Positive Factors
Market Leadership
The event featured a panel discussion with automotive industry experts, highlighting the company’s market leadership and showing that it currently has only a handful of true competitors.
Regulatory Changes
Seeing Machines is well-positioned to capitalize on regulatory changes mandating driver monitoring systems in vehicles across Europe.
Strategic Partnerships
The recent $32.8m strategic investment from Mitsubishi Electric Mobility provides stability as the company gets closer to reaching cash flow breakeven.
Negative Factors
Automotive Industry Struggles
Seeing Machines' H1 performance is indicative of wider auto industry struggles, with broadly flat revenues and ARR, leading to a larger-than-expected adjusted cash EBITDA loss.
Production Volume Reduction
Revenue for the first half of the year is expected to include a reduction in production volumes, as new cars on the road dropped and OEMs downgraded lower specification vehicles.
Revenue Challenges
Aftermarket production delays have been the true cause of the current revenue pause with the division declining 25% in H1.

Seeing Machines (SEE) vs. S&P 500 (SPY)

Seeing Machines Business Overview & Revenue Model

Company DescriptionSeeing Machines (SEE) is a technology company that specializes in developing advanced computer vision technologies to enhance safety across various industries. The company's core focus is on driver and operator monitoring systems, leveraging artificial intelligence and machine learning to track and interpret facial and eye movements. Seeing Machines operates primarily in the automotive, aviation, and fleet sectors, providing solutions that help prevent accidents and improve operational safety.
How the Company Makes MoneySeeing Machines generates revenue through the sale and licensing of its driver and operator monitoring systems to automotive manufacturers, fleet operators, and other industry partners. The company's technology is often integrated into vehicles and equipment, where it provides real-time monitoring and alerts to prevent accidents caused by fatigue or distraction. Seeing Machines also earns income through partnerships with major automotive companies for the development and implementation of safety technologies. Additionally, the company may generate revenue from after-sales services, support, and potential recurring revenue from software updates or data services.

Seeing Machines Financial Statement Overview

Summary
Seeing Machines shows revenue growth but faces significant financial challenges with ongoing net losses, high leverage, and negative cash flows, indicating financial instability.
Income Statement
45
Neutral
Seeing Machines has shown revenue growth, with a notable increase from 2023 to 2024. However, the company is still operating at a net loss, and the negative EBIT and EBITDA margins indicate ongoing operational challenges. The gross profit margin has been relatively stable, which is a positive indicator of cost control at the production level. Overall, while revenue growth is a positive sign, the continued losses suggest financial instability.
Balance Sheet
38
Negative
The balance sheet shows high leverage, as evidenced by the increase in total debt and negative net income impacting shareholders' equity. The debt-to-equity ratio is high, indicating a significant reliance on debt financing. The equity ratio has decreased over time, reflecting a reduction in financial stability. While the company maintains cash reserves, the overall financial structure appears to be under pressure due to liabilities outpacing equity.
Cash Flow
30
Negative
Seeing Machines has consistently reported negative free cash flow, indicating cash outflows are not being adequately managed. The operating cash flow to net income ratio shows inefficiencies in converting revenue into cash. The cash flow from financing activities indicates reliance on external funding, which may not be sustainable long-term. Overall, the cash flow statement reflects financial strain with limited cash generation from operations.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
59.12M67.63M57.77M26.82M26.61M19.05M
Gross Profit
23.99M31.52M28.90M12.04M11.71M6.87M
EBIT
-26.12M-26.86M-13.70M-12.52M-10.08M-21.28M
EBITDA
-24.77M-26.45M-13.01M-18.21M-10.08M―
Net Income Common Stockholders
-29.93M-31.28M-15.55M-12.77M-9.83M-22.24M
Balance SheetCash, Cash Equivalents and Short-Term Investments
27.37M23.68M54.26M58.62M47.87M38.65M
Total Assets
63.15M130.30M133.09M137.61M92.93M65.70M
Total Debt
5.08M50.92M43.23M4.35M5.27M5.93M
Net Debt
-21.78M27.56M7.09M-54.27M-42.12M-32.21M
Total Liabilities
15.64M93.31M66.56M30.70M20.89M19.49M
Stockholders Equity
47.50M36.98M99.89M106.92M72.05M46.21M
Cash FlowFree Cash Flow
-20.77M-11.94M-50.68M-21.80M――
Operating Cash Flow
-19.32M0.00-25.04M-7.90M-11.08M-11.54M
Investing Cash Flow
-26.56M-24.00M-25.63M-13.90M―3.82M
Financing Cash Flow
16.54M-729.00K45.29M26.77M21.77M―

Seeing Machines Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.10
Price Trends
50DMA
3.11
Negative
100DMA
3.51
Negative
200DMA
4.09
Negative
Market Momentum
MACD
-0.32
Negative
RSI
27.85
Positive
STOCH
31.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SEE, the sentiment is Negative. The current price of 2.1 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 3.11, and below the 200-day MA of 4.09, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 27.85 is Positive, neither overbought nor oversold. The STOCH value of 31.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SEE.

Seeing Machines Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$20.94B10.43-13.41%2.52%4.53%-23.34%
GBSEE
35
Underperform
£100.31M―-60.98%―12.17%-93.55%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SEE
Seeing Machines
2.10
-2.65
-55.79%
ODMUF
Old Mutual Ltd.
0.54
-0.06
-10.00%
GB:RAI
RA International Group Plc
0.75
-7.25
-90.63%

Seeing Machines Earnings Call Summary

Earnings Call Date: Mar 27, 2025 | % Change Since: -8.30% | Next Earnings Date: Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, such as the launch of the Guardian Generation 3 product, strategic partnerships, and a shift towards a software-oriented business model expected to improve margins. However, the company also faces challenges in the automotive sector, financial losses, and cash flow risks. The sentiment is balanced with both opportunities and risks present.
Highlights
Guardian Generation 3 Product Launch
Seeing Machines launched the Guardian Generation 3 product, which features a lower unit cost, smaller form factor, and better integration capabilities. This is expected to propel growth in the next financial year.
Deepening Strategic Partnerships
The company has entered a new agreement with Caterpillar, expanding fields of use and collaboration in the mining sector. Additionally, the acquisition of Asaphus Vision is expected to enhance the company's presence and capabilities in Europe.
Aftermarket Growth and Regulation Support
Aftermarket segment saw 32% revenue growth in FY '24, with further growth expected due to regulatory support and safety initiatives.
Revenue and Margin Expansion Strategy
The company reported a strategic shift towards a more software-oriented business model, expected to increase gross margins significantly by FY '26.
Automotive Royalty Leadership
Seeing Machines maintained a market-leading position in automotive royalties, with a growth rate expected to continue at an average of 100% year-on-year.
Lowlights
Automotive Industry Challenges
The automotive sector faced significant headwinds, including manufacturing overcapacity and geopolitical complexities, affecting production volumes and visibility.
EBITDA Loss
The company reported an EBITDA loss of $17.9 million for FY '24, indicating financial challenges despite revenue growth in certain segments.
Decrease in Automotive Revenue
Automotive revenue decreased in FY '24 compared to FY '23, largely due to the impact of an exclusivity arrangement with Magna.
Cash Flow Risks
Concerns were raised about cash flow and the potential need for additional capital due to the lumpy nature of automotive receivables.
Slow Aviation Sales Conversion
Sales conversion in the Aviation segment is slow, with a gradual progression from Blue Label to Black Label products required for market readiness.
Company Guidance
In the recent investor call for Seeing Machines Limited, CEO Paul McGlone highlighted several key metrics and developments for the fiscal year 2024. The company delivered a 76% growth in Automotive volumes, with their technology now integrated into over 2.2 million vehicles as of June 30, 2024. They introduced the Guardian Generation 3 product, which boasts a reduced unit cost and smaller form factor, potentially enhancing market integration. The revenue mix showed 61% from Aftermarket, 33% from Automotive, and 6% from Aviation, with a target revenue of $125 million by FY 2026. The company acquired Asaphus Vision for up to $6 million to boost their technological capabilities and European market presence. The cash burn rate was reduced to $2 million per month, aiming for breakeven by the end of FY 2025, with a significant improvement in gross profit margins expected to reach the mid-60s. The anticipated growth in royalties and hardware margins, particularly from Automotive, is expected to drive the company's financial performance forward.

Seeing Machines Corporate Events

Business Operations and Strategy
Seeing Machines Hosts Strategic Update for Investors and Analysts
Positive
Apr 2, 2025

Seeing Machines Limited is hosting a presentation in London for investors and analysts, led by CEO Paul McGlone and CFO Martin Ive. The event will update attendees on the company’s strategic and operational progress and highlight future opportunities. It includes a panel discussion with industry experts and technology demonstrations for in-person attendees. This initiative underscores Seeing Machines’ commitment to advancing its market position and engaging stakeholders through transparent communication.

Business Operations and Strategy
Seeing Machines Chair Increases Stake with Significant Share Purchase
Positive
Apr 2, 2025

Seeing Machines Limited announced that Dunford Super Fund Pty Ltd, associated with the company’s Chair, Kate Hill, purchased 500,000 ordinary shares at 2.40 pence each. This transaction increases Ms. Hill’s beneficial interest to 5,500,000 shares, representing 0.1% of the company’s issued share capital. This move signifies confidence in the company’s strategic direction and may positively influence stakeholder perception and market positioning.

Other
Seeing Machines CFO Increases Stake with Share Purchase
Positive
Apr 2, 2025

Seeing Machines Limited announced that its Chief Financial Officer, Martin Ive, has purchased a total of 330,000 ordinary shares at an average price of 2.1855 pence per share. This transaction increases Mr. Ive’s beneficial interest to 11,755,726 ordinary shares, representing 0.24% of the company’s issued share capital. This move may signal confidence in the company’s future prospects and could positively influence investor sentiment.

Product-Related AnnouncementsBusiness Operations and Strategy
Seeing Machines Unveils 3D Camera Tech for Automotive In-Cabin Monitoring
Positive
Apr 1, 2025

Seeing Machines has announced a partnership with Airy3D to introduce a new 3D camera technology for in-cabin monitoring systems in the automotive industry. This technology integrates 3D range data with 5MP RGB and infrared 2D images, offering a cost-effective solution for automakers to meet future safety regulations. The collaboration aims to make 3D sensing a standard in in-cabin monitoring, enhancing vehicle safety and providing a seamless transition to more intelligent systems.

Business Operations and Strategy
Seeing Machines CFO Increases Stake with Significant Share Purchase
Positive
Mar 31, 2025

Seeing Machines Limited announced that Istabraq Pty Ltd, associated with CFO Martin Ive, purchased 500,000 ordinary shares at 2.25 pence each, increasing Mr. Ive’s stake to 11,425,726 shares, representing 0.23% of the company’s issued share capital. This transaction, conducted on the London Stock Exchange, highlights insider confidence in the company’s strategic direction and potential growth, potentially impacting investor sentiment positively.

Business Operations and Strategy
Seeing Machines CFO Increases Stake with Significant Share Purchase
Positive
Mar 28, 2025

Seeing Machines Limited announced that its Chief Financial Officer, Martin Ive, has purchased a total of 568,000 ordinary shares, reflecting a strategic move that increases his stake to 0.22% of the company’s issued share capital. This transaction underscores confidence in the company’s future prospects and may positively influence stakeholder perception regarding the company’s market position and operational strategies.

Executive/Board ChangesBusiness Operations and Strategy
Seeing Machines Announces Board Changes Amid Shareholder Shift
Neutral
Mar 27, 2025

Seeing Machines Limited announced the resignation of Michael Brown, a non-executive director since 2020, from its board. This change follows the reduction of Lombard Odier’s shareholding below 10% after Mitsubishi Electric Mobility Corporation joined the company’s share register. The board, now composed entirely of independent directors, will not appoint a new director at this time. The company acknowledges Brown’s contributions and continues to value the support of Lombard Odier, its second-largest shareholder, as it anticipates upcoming regulations to be pivotal in its growth trajectory.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Seeing Machines Aims for Cash Flow Break-Even Amid Strategic Reorganization
Positive
Mar 27, 2025

Seeing Machines Limited reported its half-year results for FY2025, highlighting a strategic reorganization and cost reduction of US$12 million to achieve cash flow break-even in 2025. The company maintained a strong market position with over 2.88 million cars equipped with its technology, despite global automotive industry volatility. Key developments include a significant investment from Mitsubishi Electric Mobility Corporation, strategic collaborations with Valeo, and the acquisition of Asaphus Vision GmbH to boost AI capabilities. The company anticipates growth driven by regulatory developments in road safety, with a focus on expanding its market share in Asia, Europe, and the US.

Business Operations and Strategy
Seeing Machines Sees Change in Major Shareholding
Neutral
Mar 26, 2025

Seeing Machines Limited has announced a change in its major holdings, with Federated Hermes, Inc. now holding 5.997% of voting rights. This adjustment in shareholding may influence the company’s strategic decisions and potentially impact its market positioning, reflecting a significant interest from a major institutional investor.

Executive/Board ChangesBusiness Operations and Strategy
Seeing Machines Strengthens Leadership with Key Appointments
Positive
Mar 24, 2025

Seeing Machines has announced the appointment of John Noble as Chief Technology Officer and Dr. Mike Lenné as Chief Safety Officer, as part of a strategic reorganization to enhance its leadership in AI-powered operator monitoring systems. These appointments aim to strengthen the company’s technology strategy and safety initiatives, aligning with increasing regulatory demands for driver monitoring systems in Europe. The company has secured significant automotive programs and partnerships, positioning itself as a leader in the transport safety industry.

Business Operations and StrategyFinancial Disclosures
Seeing Machines to Live Stream Town Hall Presentation
Neutral
Mar 21, 2025

Seeing Machines announced that it will live stream its Town Hall presentation on 2 April 2025, offering insights into its operations and future outlook. The event, led by CEO Paul McGlone and CFO Martin Ive, will feature discussions on financial results, industry panels, and technology demonstrations, providing stakeholders with a comprehensive view of the company’s strategic direction and industry positioning.

Business Operations and StrategyRegulatory Filings and Compliance
Seeing Machines Announces Change in Voting Rights Structure
Neutral
Mar 3, 2025

Seeing Machines Limited has announced a significant change in its voting rights structure due to the acquisition of shares by Federated Hermes, Inc. This acquisition has resulted in Federated Hermes holding 6.450% of the voting rights in Seeing Machines. The change in voting rights indicates a strategic move that could influence the company’s governance and decision-making processes, potentially impacting its market positioning and stakeholder interests.

Business Operations and Strategy
Seeing Machines CFO Increases Stake with Share Purchase
Positive
Feb 27, 2025

Seeing Machines Limited announced that its Chief Financial Officer, Martin Ive, purchased 250,000 ordinary shares at a price of 3.21 pence each, increasing his total shareholding to 10,357,726 shares, which represents 0.21% of the company’s issued share capital. This transaction reflects confidence in the company’s strategic direction and may positively influence investor sentiment, potentially impacting the company’s market positioning and stakeholder interests.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Seeing Machines Positions for Growth Amid Market Challenges
Positive
Feb 26, 2025

Seeing Machines Limited reported a stable revenue for the first half of FY2025, despite market turbulence, with a strong cash position and a significant increase in the number of cars equipped with its technology. The company has secured a major investment from Mitsubishi Electric Mobility Corporation and entered strategic collaborations with Valeo and other partners to expand its market share in the automotive sector. Additionally, the acquisition of Asaphus Vision GmbH enhances its AI capabilities, and the company’s Guardian Generation 3 technology is being trialed globally, positioning it for growth in the transport and logistics sector. The company anticipates increased adoption of its technology due to upcoming EU safety regulations, which will drive future production volumes and revenue.

Product-Related AnnouncementsBusiness Operations and Strategy
Seeing Machines Partners with Mitsubishi Electric to Boost Guardian Generation 3 Sales in The Americas
Positive
Feb 24, 2025

Seeing Machines Limited has entered into a Referral Agreement with Mitsubishi Electric Automotive America, Inc. to boost sales of its Guardian Generation 3 driver monitoring solution in The Americas. This partnership leverages MEAA’s extensive aftermarket distribution network and customer base, enhancing Seeing Machines’ market penetration in the telematics and connected vehicle sectors. The collaboration aims to reduce sales lead times and improve road safety by increasing installations of Guardian Generation 3, aligning with Seeing Machines’ strategic goals in the region.

Business Operations and StrategyFinancial Disclosures
Seeing Machines Announces Upcoming London Investor Presentation
Neutral
Feb 18, 2025

Seeing Machines Limited announced an in-person Town Hall presentation in London, where CEO Paul McGlone and CFO Martin Ive will update investors on strategic and operational progress following the publication of the company’s FY2025 Interim Results. The event will include a panel discussion, Q&A opportunities, and demonstrations of the latest interior cabin sensing technology, with limited in-person attendance but a recorded version available online.

Business Operations and Strategy
Seeing Machines CFO-Associated Firm Increases Stake, Signaling Confidence
Positive
Jan 23, 2025

Seeing Machines Limited announced that Istabraq Pty Limited, associated with its Chief Financial Officer Martin Ive, purchased a significant amount of the company’s ordinary shares. These transactions highlight potential confidence in the company’s future performance and could impact investor perceptions positively, reflecting stakeholder trust in the company’s strategic direction and market positioning.

Other
Seeing Machines CFO Associated Entity Increases Shareholding
Positive
Jan 21, 2025

Seeing Machines Limited announced that Istabraq Pty Limited, associated with CFO Martin Ive, purchased 301,620 ordinary shares, increasing Mr. Ive’s stake to 9,809,346 shares. This transaction, executed on the London Stock Exchange, underscores insider confidence in the company, potentially affecting investor perception and market positioning.

Seeing Machines Director Acquires Significant Shareholding
Jan 15, 2025

Seeing Machines Limited announced that Stephane Vedie, a non-executive director, has purchased 1,170,000 ordinary shares of the company at 4.00 pence per share. This acquisition represents 0.02% of the company’s issued share capital, indicating a modest increase in insider ownership which could signal confidence in the company’s strategic direction and operational performance.

Seeing Machines CFO Increases Stake in Company
Jan 15, 2025

Seeing Machines Limited announced that its Chief Financial Officer, Martin Ive, purchased 205,000 ordinary shares at a price of 3.96 pence per share. This transaction increases Mr. Ive’s total shareholding to 8,907,726 shares, representing 0.18% of the company’s issued share capital. This move reflects management’s confidence in the company’s strategic direction and could positively impact investor sentiment, reinforcing its position as a leader in advanced operator monitoring systems.

Seeing Machines CFO Increases Stake with Share Purchase
Jan 14, 2025

Seeing Machines Limited announced that its Chief Financial Officer, Martin Ive, purchased 390,000 ordinary shares at 3.93 pence per share, increasing his total holding to 8,702,726 shares or 0.18% of the company’s issued share capital. This transaction highlights the executive’s confidence in the company’s prospects and may positively influence stakeholder perception of the company’s market positioning.

Seeing Machines CFO Increases Stake in Company Shares
Jan 10, 2025

Seeing Machines Limited announced that its Chief Financial Officer, Martin Ive, has increased his stake in the company by purchasing 289,746 ordinary shares over two days. This move demonstrates confidence in the company’s future and may positively influence stakeholder perception, potentially strengthening Seeing Machines’ market position.

Seeing Machines to Highlight Advanced Safety Solutions at CES 2025
Jan 8, 2025

Seeing Machines announced its participation at CES 2025, where it will showcase its latest interior sensing technology, emphasizing advancements in driver and occupant monitoring systems. The company highlights its strategic collaboration with Mitsubishi and integration with QNX, aiming to address global safety regulations through innovative solutions that improve road safety and align with new laws mandating in-vehicle monitoring for driver distraction and fatigue.

Seeing Machines Adjusts Major Shareholdings Following Share Dilution
Jan 3, 2025

Seeing Machines Limited, a non-UK issuer, has announced changes in major holdings due to a dilution from a new issue of shares. Richard Griffiths and controlled holdings have reduced their voting rights in the company to below 3%, a drop from the previous position of 4.04%. This adjustment may impact the company’s shareholder dynamics and market perception.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.