SRT Marine Systems (SRT) AI Stock Analysis

• Market Cap: £190.92M
• Dividend Yield: N/A
• Average Volume (3M): 255.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 109
• Sector: Technology
• Sector Strength: 85
• Industry: Hardware, Equipment & Parts
• EPS (TTM): <0.01
• Shares Outstanding: 251,215,650
• 10 Day Avg. Volume: 317,463
• 30 Day Avg. Volume: 255,063
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £80.00
• Price Target Upside: 6.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: 80.00p ▲(6.67% Upside)

While SRT Marine Systems showcases promising business momentum through strategic projects and contracts, it faces substantial financial challenges. The stock's technical indicators are positive, indicating strong market interest, but financial instability and valuation uncertainties weigh significantly on the overall score.

Positive Factors

Major Contracts

Securing major contracts like the one with Kuwait enhances SRT's revenue visibility and strengthens its market position in maritime surveillance.

Strategic Projects

The Indonesian project positions SRT as a key player in maritime security, providing long-term growth through strategic international partnerships.

Revenue Growth

The significant revenue increase reflects strong business momentum and effective execution of contracts, supporting sustained growth.

Negative Factors

Financial Challenges

Persistent financial challenges, such as negative cash flows and high leverage, threaten SRT's ability to sustain operations without strategic intervention.

Decline in Revenue

The sharp decline in revenue indicates potential market or operational issues, undermining financial health and growth prospects.

High Debt Levels

High debt levels can constrain financial flexibility and increase risk, especially with consistent net losses, impacting long-term stability.

SRT Marine Systems Business Overview & Revenue Model

Company Description

SRT Marine Systems (SRT) is a leading provider of advanced maritime surveillance, monitoring, and communication systems. The company specializes in the development and supply of Automatic Identification System (AIS) technology, which is used for tracking and identifying vessels at sea. SRT's products and solutions are widely utilized by national coast guards, fisheries, and commercial shipping companies to enhance maritime safety, security, and efficiency.

How the Company Makes Money

SRT Marine Systems generates revenue through the sale of its AIS-based products and solutions to a diverse clientele, including government agencies, commercial shipping operators, and fisheries. The company's key revenue streams include the sale of hardware, such as transceivers and display systems, as well as software solutions for data management and analytics. Additionally, SRT engages in long-term contracts and partnerships with governments and organizations for the implementation and maintenance of maritime monitoring systems. These partnerships often involve significant commitments to support infrastructure and provide ongoing services, contributing to a steady and predictable revenue flow.

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 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	11.85M	11.85M	30.51M	8.17M	8.28M	18.91M
Gross Profit	3.36M	3.36M	11.04M	2.67M	3.18M	4.37M
EBITDA	-10.18M	-10.18M	3.02M	-3.42M	-2.59M	-4.22M
Net Income	―	-10.92M	69.52K	-5.84M	-5.13M	-6.08M
Balance Sheet
Total Assets	30.27M	30.27M	26.41M	24.71M	22.01M	29.04M
Cash, Cash Equivalents and Short-Term Investments	2.78M	2.78M	2.18M	5.92M	5.29M	918.81K
Total Debt	14.40M	14.40M	8.89M	8.46M	9.64M	6.26M
Total Liabilities	18.21M	18.21M	16.10M	14.92M	11.29M	15.30M
Stockholders Equity	12.05M	12.05M	10.31M	9.79M	10.72M	13.73M
Cash Flow
Free Cash Flow	-10.29M	-10.29M	-3.29M	-1.32M	-273.11K	-2.43M
Operating Cash Flow	-10.07M	-10.07M	1.70M	2.19M	2.84M	1.06M
Investing Cash Flow	-4.77M	-4.77M	-4.99M	-3.51M	-3.11M	-3.49M
Financing Cash Flow	15.32M	15.32M	-410.19K	2.86M	4.64M	-590.92K

SRT Marine Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.00
• 50DMA: Negative
• 100DMA: Positive
• 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 75 is below the 20-day moving average (MA) of 80.70, below the 50-day MA of 81.26, and above the 200-day MA of 61.50, indicating a neutral trend. The MACD of -1.25 indicates Positive momentum. The RSI at 36.04 is Neutral, neither overbought nor oversold. The STOCH value of 27.87 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
SDI	76 Outperform	£106.12M	26.51	8.38%	―	0.50%	-6.16%
QTX	73 Outperform	£137.54M	26.13	27.08%	1.95%	8.19%	―
SRT	66 Neutral	£190.92M	―		―	―	―
Sector *	61 Neutral	$36.69B	12.42	-10.20%	1.85%	8.50%	-7.32%
GHH	52 Neutral	£147.51M	27.09	4.79%	2.40%	1.74%	359.50%
TTG	52 Neutral	£181.08M	―	-22.95%	6.76%	-15.12%	-690.29%
SOLI	51 Neutral	£88.39M	173.33	0.81%	1.60%	-23.42%	-94.25%

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.