Seeing Machines (SEE) AI Stock Analysis

• Market Cap: £138.48M
• Dividend Yield: N/A
• Average Volume (3M): 4.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 10.74%
• EPS Growth: 12.07%
• Country: UK
• Employees: 421
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 4,912,392,000
• 10 Day Avg. Volume: 5,210,826
• 30 Day Avg. Volume: 4,245,064
• 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: £3.00
• Price Target Upside: 6.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: 3.00p ▲(6.01% Upside)

The overall stock score reflects the financial instability balanced by positive corporate events and moderate technical indicators. The company's strategic partnerships signal growth potential, but financial challenges and valuation concerns weigh on the score.

Positive Factors

Cost Reduction and Financial Stability

Cost reductions are already resulting in a $1 million per month reduction in operating expenses, with further improvements expected as productivity rises.

Partnerships and Market Expansion

Mitsubishi Electric Mobility Partnership is helping expand its market reach, especially in Japan and the US.

Regulatory Advancements

Seeing Machines is well-positioned to capitalize on regulatory changes mandating driver monitoring systems in vehicles across Europe.

Negative Factors

Aftermarket Delays

Aftermarket production delays have been the true cause of the current revenue pause with the division declining 25%.

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.

Revenue Challenges

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.

Seeing Machines Business Overview & Revenue Model

Company Description

Seeing Machines Limited, together with its subsidiaries, provides driver monitoring technologies in Australia, North America, the Asia Pacific, Europe, and internationally. It operates through two segments: Original Equipment Manufacturer (OEM) and Aftermarket. The company offers operator monitoring and intervention sensing technologies and services for the automotive, mining, transport, and aviation industries. It develops, sells, and licenses products, services, and technology to detect and manage driver fatigue and distraction, as well as provides software, after-sales monitoring, and consulting services. The company was incorporated in 2000 and is headquartered in Fyshwick, Australia.

How the Company Makes Money

Seeing Machines generates revenue through the sale and licensing of its proprietary driver and operator monitoring systems (DMS/OMS) to global automotive manufacturers, fleet operators, and aviation companies. The company earns money by embedding its technology into vehicles, which involves direct sales and long-term licensing agreements with automotive OEMs (Original Equipment Manufacturers). Additionally, Seeing Machines partners with Tier 1 suppliers to integrate its systems into a wider range of vehicles, expanding its market reach. The company also offers ongoing support and maintenance services, creating a recurring revenue stream. Strategic partnerships with key players in the automotive and transportation industries further bolster Seeing Machines' revenue, allowing for the co-development of new technologies and access to broader markets.

Seeing Machines Financial Statement Overview

Summary

Seeing Machines is experiencing revenue growth but continues to struggle with profitability. The company is facing financial challenges with high leverage, negative free cash flow, and reliance on external financing. Despite stable gross profit margins, the overall financial health is concerning due to operational inefficiencies and financial instability.

Income Statement

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

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

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	67.63M	57.77M	26.82M	26.61M	19.05M
Gross Profit	31.52M	28.90M	12.04M	11.71M	6.87M
EBITDA	-26.45M	-13.01M	-18.21M	-10.08M	―
Net Income	-31.28M	-15.55M	-12.77M	-9.83M	-22.24M
Balance Sheet
Total Assets	130.30M	133.09M	137.61M	92.93M	65.70M
Cash, Cash Equivalents and Short-Term Investments	23.68M	54.26M	58.62M	47.87M	38.65M
Total Debt	50.92M	43.23M	4.35M	5.27M	5.93M
Total Liabilities	93.31M	66.56M	30.70M	20.89M	19.49M
Stockholders Equity	36.98M	99.89M	106.92M	72.05M	46.21M
Cash Flow
Free Cash Flow	11.22M	-50.68M	-21.80M	―	―
Operating Cash Flow	12.05M	-25.04M	-7.90M	-11.08M	-11.54M
Investing Cash Flow	-24.00M	-25.63M	-13.90M	―	3.82M
Financing Cash Flow	-729.00K	45.29M	26.77M	21.77M	―

Seeing Machines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.83
• 50DMA: Positive
• 100DMA: Positive
• 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:SEE, the sentiment is Positive. The current price of 2.83 is above the 20-day moving average (MA) of 2.81, above the 50-day MA of 2.74, and below the 200-day MA of 3.05, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 46.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SEE.

Seeing Machines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKS	74 Outperform	£148.85M	62.96	6.33%	―	25.72%	290.00%
BGO	70 Outperform	£67.23M	―	-13.63%	―	12.63%	59.24%
Sector *	61 Neutral	$36.28B	7.09	-7.27%	1.97%	7.76%	-8.56%
CNS	60 Neutral	£51.22M	142.86	2.72%	―	6.95%	―
SEE	52 Neutral	£138.48M	―	-59.88%	―	10.74%	12.07%
CTAI	―	£3.51M	―	-70.65%	―	―	―
PCIP	60 Neutral	£34.20M	―		―	20.56%	83.30%

Seeing Machines Corporate Events

Seeing Machines Expands European and Australian Markets with Strategic Partnerships

Seeing Machines Limited has entered a referral agreement with Mitsubishi Electric Europe B.V. to enhance driver safety in Europe by promoting its Guardian Generation 3 driver monitoring solution. This collaboration aims to leverage Mitsubishi Electric’s extensive network and relationships with truck and bus OEMs to comply with the European Union’s new Vehicle General Safety Regulations. Additionally, Seeing Machines has renewed its distributor agreement with Connect Source in Australia, marking its largest single order for Guardian Generation 3 to date, which will be implemented across 550 vehicles in a large Australian utility company’s fleet.

The most recent analyst rating on (GB:SEE) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Seeing Machines stock, see the GB:SEE Stock Forecast page.

Seeing Machines Expands European and Australian Market Reach with New Agreements

Seeing Machines Limited has entered a referral agreement with Mitsubishi Electric Europe B.V. to enhance driver safety in Europe, aligning with the EU’s new Vehicle General Safety Regulations. This collaboration aims to leverage Mitsubishi Electric’s extensive network to boost sales of Seeing Machines’ Guardian Generation 3 driver monitoring solution, particularly in the logistics and transportation sectors. Additionally, Seeing Machines has renewed its distributor agreement with Connect Source in Australia, securing a significant order from a large utility company, marking the company’s largest single order for Guardian Generation 3.

The most recent analyst rating on (GB:SEE) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Seeing Machines stock, see the GB:SEE Stock Forecast page.

Seeing Machines Launches Guardian Generation 3 Pilot with Mitsubishi Electric in North America

Seeing Machines Limited has launched a six-week pilot program for its Guardian Generation 3 aftermarket solution in collaboration with Mitsubishi Electric Automotive America, Inc. This initiative is part of a strategic partnership to boost sales in the Americas by leveraging Mitsubishi’s customer relationships. The pilot marks a significant step in enhancing vehicle safety and represents a promising opportunity in the competitive US connected vehicle market, with potential for substantial sales growth in the region.

The most recent analyst rating on (GB:SEE) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Seeing Machines stock, see the GB:SEE Stock Forecast page.

Seeing Machines Secures $1.2 Million Deal to Enhance Autonomous Vehicle Safety

Seeing Machines has secured a $1.2 million agreement to supply Guardian Backup-driver Monitoring Systems to a leading North American autonomous driving company. This collaboration highlights Seeing Machines’ pivotal role in advancing autonomous vehicle technology by ensuring safety and reliability through its monitoring systems. The integration of these systems into self-driving test vehicles is crucial for the expansion of autonomous mobility services, promising enhanced safety and efficiency in urban transportation.

The most recent analyst rating on (GB:SEE) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Seeing Machines stock, see the GB:SEE Stock Forecast page.

Seeing Machines Director Increases Stake with Significant Share Purchase

Seeing Machines Limited announced that Stephane Vedie, a non-executive director, purchased 619,500 ordinary shares at 2.35 pence each, increasing his total holding to 1,789,500 shares. This transaction reflects confidence in the company’s strategic direction and may positively influence stakeholder perception, reinforcing Seeing Machines’ commitment to advancing safety in transport through its innovative monitoring technology.