SRT Marine Systems (SRT) AI Stock Analysis

• Market Cap: £218.88M
• Dividend Yield: N/A
• Average Volume (3M): 436.42K
• Price to Earnings (P/E): 96.7
• Beta (1Y): -0.17
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 109
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 251,590,650
• 10 Day Avg. Volume: 330,538
• 30 Day Avg. Volume: 436,420
• PEG Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: 83.00p ▲(5.06% Upside)

The overall stock score is primarily influenced by strong revenue growth and improving operational efficiency. However, high valuation metrics and weak technical indicators weigh down the score. The absence of dividend yield and cash flow challenges further impact the stock's attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for SRT's products and services, enhancing its market position and potential for future expansion.

Operational Efficiency

Improved operational efficiency suggests effective cost management and scalability, which can lead to higher profitability over time.

Market Position

Being a leader in maritime domain awareness solutions positions SRT as a key player in a niche market, providing a competitive edge.

Negative Factors

Cash Flow Challenges

Negative cash flow indicates potential liquidity issues, which could limit the company's ability to invest in growth or weather economic downturns.

Profitability Concerns

Low and volatile net profit margins suggest challenges in maintaining consistent profitability, which could affect long-term sustainability.

Leverage

While manageable, moderate leverage could pose risks if cash flow issues persist, potentially impacting financial flexibility.

SRT Marine Systems Business Overview & Revenue Model

Company Description

SRT Marine Systems (SRT) is a leading provider of maritime domain awareness solutions, specializing in Automatic Identification Systems (AIS) technology. The company operates primarily in the marine, naval, and security sectors, offering a range of products and services including AIS transceivers, vessel tracking systems, and integrated maritime surveillance solutions. SRT focuses on enhancing maritime safety and security while enabling efficient marine operations through its innovative technology and expertise in the field.

How the Company Makes Money

SRT generates revenue through multiple streams, including the sale of AIS hardware and software solutions, licensing agreements, and ongoing service contracts. The company earns income from the manufacturing and distribution of its AIS transceivers, which are sold to various clients including government agencies, commercial shipping companies, and maritime organizations. In addition, SRT capitalizes on revenue from long-term contracts for the provision of maintenance and support services, as well as software updates. Significant partnerships with government bodies and maritime authorities further enhance SRT's earnings potential, as they often lead to large-scale contracts and projects requiring advanced maritime technology solutions.

SRT Marine Systems Financial Statement Overview

Summary

SRT Marine Systems faces significant financial challenges, highlighted by a sharp decline in revenue and profitability. Negative cash flows and high leverage pose risks to financial stability, demanding strategic measures for improvement.

Income Statement

The income statement reveals a significant decline in revenue from the previous year, with total revenue decreasing from £30.5 million to £11.85 million. Gross profit margin has also decreased, and the company has incurred a substantial net loss of £10.92 million. The negative EBIT and EBITDA margins indicate operational inefficiencies and challenges in managing costs relative to revenue.

Balance Sheet

The balance sheet indicates a moderately leveraged position with a Debt-to-Equity ratio of approximately 1.2, suggesting a reliance on debt financing. Stockholders' equity has increased slightly, but the company's equity ratio is around 39.8%, which implies moderate financial stability. However, the high debt levels pose potential risks, especially in the context of consistent net losses.

Cash Flow

Cash flow analysis highlights significant challenges, with operating cash flow turning negative at -£10.07 million, a stark contrast to the previous positive cash flow. The free cash flow is also negative, reflecting the company's struggle to generate cash from its operations. The financing cash flow is positive due to increased debt, indicating a reliance on external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.85M	78.02M	11.85M	30.51M	8.17M	8.28M
Gross Profit	3.36M	23.90M	3.36M	11.04M	2.67M	3.18M
EBITDA	-10.18M	6.46M	-10.18M	3.02M	-3.42M	-2.59M
Net Income	-10.92M	2.03M	-10.92M	69.52K	-5.84M	-5.13M
Balance Sheet
Total Assets	30.27M	87.41M	30.27M	26.41M	24.71M	22.01M
Cash, Cash Equivalents and Short-Term Investments	2.78M	9.95M	2.78M	2.18M	5.92M	5.29M
Total Debt	14.40M	17.20M	14.40M	8.89M	8.46M	9.64M
Total Liabilities	18.21M	60.55M	18.21M	16.10M	14.92M	11.29M
Stockholders Equity	12.05M	26.85M	12.05M	10.31M	9.79M	10.72M
Cash Flow
Free Cash Flow	-10.29M	-1.05M	-10.29M	-3.29M	-1.32M	-273.11K
Operating Cash Flow	-10.07M	-501.30K	-10.07M	1.70M	2.19M	2.84M
Investing Cash Flow	-4.77M	-4.98M	-6.00M	-4.99M	-3.51M	-3.11M
Financing Cash Flow	15.32M	11.70M	20.35M	-410.19K	2.86M	4.64M

SRT Marine Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SRT, the sentiment is Negative. The current price of 79 is below the 20-day moving average (MA) of 82.17, below the 50-day MA of 84.40, and above the 200-day MA of 73.28, indicating a neutral trend. The MACD of -1.13 indicates Positive momentum. The RSI at 39.53 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SRT.

SRT Marine Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QTX	74 Outperform	£125.92M	23.92	27.08%	1.96%	8.19%	―
SDI	70 Neutral	£84.70M	21.26	9.34%	―	7.36%	31.93%
SOLI	68 Neutral	£81.00M	158.33	3.88%	1.61%	8.75%	-54.73%
GHH	67 Neutral	£155.04M	28.39	3.13%	2.20%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SRT	55 Neutral	£218.88M	96.67	―	―	―	―
TTG	54 Neutral	£265.59M	-3.81	-31.42%	―	-16.33%	-448.12%

SRT Marine Systems Corporate Events

SRT Marine Systems Announces Director Share Transactions

SRT Marine Systems PLC announced the grant of options, exercise of options, and sale of shares by executive director Jean Francois Bonnin. Bonnin was granted options over 500,000 ordinary shares, which vest annually over five years and are exercisable in tranches based on the company’s share price performance. He exercised 175,000 options from a previous grant and sold the shares to meet tax obligations. Following these transactions, Bonnin holds 825,000 share options, and the company has a total of 11,935,000 options in issue. The new shares are expected to be admitted to trading on AIM, increasing the total voting rights for shareholders.

SRT Marine Systems Launches €167 Million Maritime Security Project in Indonesia

SRT Marine Systems has commenced a €167 million project with the Indonesian Coast Guard to deliver a National Maritime Security System (NMSS). This project, spanning two years with subsequent support over eight years, aims to establish a comprehensive maritime surveillance and intelligence system across Indonesia’s extensive marine domain. The system will integrate command centers, surveillance towers, drones, and patrol vessels, providing real-time surveillance and AI-driven insights into maritime activities. This initiative positions SRT as a key player in enhancing Indonesia’s maritime security capabilities, offering a scalable and future-proof solution for the nation’s evolving needs.

SRT Marine Systems Announces Live Quarterly Webcast for Stakeholder Engagement

SRT Marine Systems PLC announced a live quarterly webcast scheduled for April 9, 2025, at 8:00 a.m., where CEO Simon Tucker will provide updates on the company’s operations and activities. This webcast is an opportunity for shareholders and interested parties to engage directly with the company, as questions can be submitted before and during the event. The webcast reflects SRT’s commitment to transparency and stakeholder engagement, potentially enhancing its market position and investor relations.

SRT Marine Systems Issues New Shares Following Employee Option Conversion

SRT Marine Systems PLC has announced the issuance and allotment of 20,000 new ordinary shares following the conversion of employee share options, with each share priced at 0.1p. This move will increase the total number of ordinary shares to 249,982,656, impacting shareholder voting rights and potentially influencing market perceptions of the company’s financial health and employee incentive structures.

SRT Marine Systems Reports Strong Half-Year Results and Secures Major Contracts

SRT Marine Systems PLC reported a significant increase in revenues to £26.2 million for the six months ended December 31, 2024, with a gross profit margin of 46%. The company secured a $213 million contract with the Kuwait Ministry of Interior for a maritime surveillance system and expanded its systems delivery team to sustain future growth. With a forward systems contract order book of £320 million and a pipeline of new prospects worth £1.2 billion, SRT is positioned for continued growth. The company also expects its new NEXUS product to disrupt the market with its advanced functionalities, contributing to long-term market opportunities.