Location Sciences Group Plc (SORT) AI Stock Analysis

• Market Cap: £2.29M
• Dividend Yield: N/A
• Average Volume (3M): 9.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 51.87%
• EPS Growth: 62.47%
• Country: UK
• Employees: 51
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.28
• Shares Outstanding: 7,639,705
• 10 Day Avg. Volume: 15,884
• 30 Day Avg. Volume: 9,539
• PEG Ratio: -0.08
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 0.68
• P/FCF Ratio: -11.99
• 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: 38 Underperform
• Price Target: 23.50p ▼(-21.67% Downside)

The overall stock score is primarily driven by significant financial performance concerns, including high leverage and negative profitability margins. Technical analysis indicates bearish momentum, with the stock being oversold. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest caution for potential investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for SORT's location data services, enhancing its market position and potential for future expansion.

Diverse Revenue Streams

Diverse revenue streams from multiple industries provide stability and reduce dependency on a single market, supporting long-term growth.

Market Expansion

Expanding into various sectors allows SORT to leverage its technology across different markets, enhancing resilience and growth potential.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Negative Profitability Margins

Persistent negative margins highlight operational inefficiencies, which could hinder long-term profitability and necessitate cost management improvements.

Cash Flow Challenges

Deteriorating cash generation capabilities may affect the company's ability to fund operations and invest in growth, impacting financial stability.

Location Sciences Group Plc Business Overview & Revenue Model

Company Description

Sorted Group Holdings Plc provides delivery experience and analyzing post-purchase performance solutions. Its Delivery Experience platform offers data comprising goods deliver, post-purchase performance analysis, delivery tracking, and returning or exchanging parcels to retailers and brands. The company was formerly known as Location Sciences Group PLC and changed its name to Sorted Group Holdings Plc in February 2024. Sorted Group Holdings Plc was founded in 2005 and is based in Manchester, the United Kingdom.

How the Company Makes Money

Location Sciences Group Plc generates revenue primarily through its location data services, which include location verification and analytics solutions. The company's revenue model is based on subscription fees, where clients pay for access to its technology and services. Additionally, SORT may earn revenue from partnerships with advertising agencies and brands that seek to leverage its technology for more targeted marketing efforts. Key revenue streams also include consulting services and customized analytics reports that provide clients with actionable insights derived from location data. The company's ability to tap into diverse industries, including retail, travel, and advertising, further contributes to its earnings by catering to a broad client base looking for data-driven marketing solutions.

Location Sciences Group Plc Financial Statement Overview

Summary

Location Sciences Group Plc exhibits strong revenue growth, but profitability and financial stability are areas of concern. High leverage and negative margins indicate potential risks, while cash flow challenges suggest the need for improved operational efficiency. The company must focus on enhancing profitability and managing debt to ensure long-term sustainability.

Income Statement

The company has shown significant revenue growth of 75.73% in the most recent year, indicating strong top-line expansion. However, profitability remains a concern with a negative net profit margin of -59.67% and negative EBIT and EBITDA margins, reflecting ongoing operational challenges and high expenses relative to revenue.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.23, indicating significant leverage and potential financial risk. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is also low, highlighting a reliance on debt financing.

Cash Flow

The cash flow statement shows a negative free cash flow growth rate of -60.05%, indicating deteriorating cash generation capabilities. The operating cash flow to net income ratio is low, suggesting challenges in converting earnings into cash. However, the company has managed to improve its operating cash flow from previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.87M	5.64M	53.07K	110.86K	167.94K	318.57K
Gross Profit	2.01M	3.88M	38.70K	-177.84K	-418.17K	-403.79K
EBITDA	91.61K	-1.07M	-512.83K	-591.24K	-418.26K	115.03K
Net Income	-2.47M	-3.36M	-1.72M	-758.22K	-1.67M	-1.24M
Balance Sheet
Total Assets	5.77M	8.70M	3.65M	4.49M	5.36M	2.86M
Cash, Cash Equivalents and Short-Term Investments	1.11M	2.66M	955.11K	4.13M	4.38M	1.13M
Total Debt	4.63M	4.57M	7.28M	0.00	0.00	0.00
Total Liabilities	6.50M	7.29M	990.64K	157.86K	183.18K	211.61K
Stockholders Equity	-728.63K	1.42M	2.66M	4.33M	5.18M	2.65M
Cash Flow
Free Cash Flow	-83.90K	-321.02K	-687.98K	-253.25K	-756.76K	-1.04M
Operating Cash Flow	-50.26K	582.93K	-687.98K	-253.25K	-415.32K	-565.29K
Investing Cash Flow	-340.61K	2.47M	34.01K	8.37K	108.70K	-472.30K
Financing Cash Flow	-786.66K	-803.98K	-2.52M	0.00	3.56M	839.97K

Location Sciences Group Plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SORT, the sentiment is Neutral. The current price of 30 is equal to the 20-day moving average (MA) of 30.00, below the 50-day MA of 31.90, and above the 200-day MA of 25.90, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 41.90 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SORT.

Location Sciences Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELCO	68 Neutral	£109.62M	29.31	12.39%	0.79%	12.10%	27.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TIDE	58 Neutral	£5.26M	―	―	―	―	―
PULS	47 Neutral	£52.20M	-6.97	-16.92%	―	-1.09%	-6.65%
AIQ	41 Neutral	£2.27M	-7.14	―	―	-47.47%	12.50%
RDT	39 Underperform	£2.44M	-0.34	-213.44%	―	5.29%	72.50%
SORT	38 Underperform	£2.29M	-0.93	-556.25%	―	51.87%	62.47%