SRT Marine Systems (SRT) AI Stock Analysis

• Market Cap: £223.44M
• Dividend Yield: N/A
• Average Volume (3M): 436.42K
• Price to Earnings (P/E): 88.2
• Beta (1Y): -0.09
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 109
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.01
• Shares Outstanding: 251,620,650
• 10 Day Avg. Volume: 330,538
• 30 Day Avg. Volume: 436,420
• PEG Ratio: -0.76
• Price to Book (P/B): 6.66
• Price to Sales (P/S): 2.29
• P/FCF Ratio: -170.63
• 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: 56 Neutral
• Price Target: 90.00 p ▲(0.00% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is primarily constrained by cash flow weakness despite strong revenue growth and improving operating efficiency. Technicals are currently weak with negative momentum (though potentially oversold), and valuation is stretched due to a very high P/E with no dividend support.

Positive Factors

Revenue Growth

A 558% surge in reported revenue signifies material market traction and expanding sales scale. Durable top-line expansion supports investment in product development, strengthens bargaining power with customers and suppliers, and creates a larger base to absorb fixed costs, aiding long-term margin expansion.

Improving Margins

Healthy gross margin and rising EBIT/EBITDA margins indicate improving operational efficiency and scalable production. Sustained margin improvement enhances cash generation potential per sale, supports reinvestment in R&D and services, and makes the business more resilient to competitive pressure over time.

Manageable Leverage

Moderate leverage suggests the company can fund growth without excessive financial strain, preserving access to credit and limiting default risk. A balanced capital structure provides room to raise debt for projects while keeping interest burdens manageable, supporting sustainable expansion over months.

Negative Factors

Negative Cash Flow

Consistent negative operating and free cash flow undermines the firm's ability to fund operations, capex, and working capital from internal sources. Over the medium term this raises reliance on external financing, increases liquidity risk, and can constrain pace of commercial scaling despite revenue gains.

Low Net Profit Margin

A low net margin of ~2.6% means little profit remains after operating and non‑operating costs. This limits retained earnings for reinvestment and makes the business sensitive to cost shocks, eroding the durability of growth unless margin conversion to net income improves materially.

Weak Return on Equity

ROE near 7.6% signals modest efficiency in generating shareholder returns relative to invested capital. Combined with negative cash flow and low net margins, this suggests capital allocation or profitability shortcomings that could impede long‑term shareholder value creation unless operating leverage or cash conversion improves.

SRT Marine Systems Business Overview & Revenue Model

Company Description

SRT Marine Systems plc, together with its subsidiaries, develops and supplies automatic identification system (AIS) based maritime domain awareness technologies, products, and systems. The company offers systems, such as DAS-Digital ATON, a system that enhance port and waterway traffic control and navigation safety; NAIS-National Vessel Tracking, a vessel identification and tracking system solution; MDM-Coastguard, a maritime domain surveillance system; VMS-Fisheries, a system for tracking, monitoring, and managing fishing vessels; and VTS-Ports and Waterways, a monitoring, managing, and control system for maritime infrastructure, ports, and waterways. It also provides AIS, VMS, search and rescue, vessel, and navigation transceivers; fishing buoy trackers; base stations; display and data solutions; satellite data solutions; OEM AIS transceivers; and transceiver modules, as well as develops and sells maritime communication products and systems. The company's solutions are used in a range of maritime applications, such as safety and security, and environment sustainability and protection. It serves mariners, infrastructure owners, coast guards, and fishing authorities in the United Kingdom, rest of Europe, the Middle East, North America, South East Asia, and internationally. The company was formerly known as Software Radio Technology Plc and changed its name to SRT Marine Systems plc in July 2016. SRT Marine Systems plc was founded in 1987 and is headquartered in Bath, the United Kingdom.

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

Strong revenue growth and improving operating margins support the score, but weak cash generation (negative operating cash flow and free cash flow) meaningfully offsets these positives. Balance sheet leverage is moderate, though returns on equity remain relatively low.

Income Statement

SRT Marine Systems has shown impressive revenue growth, particularly in the latest period with a 558.32% increase. The gross profit margin is healthy at 30.63%, indicating efficient production processes. However, net profit margins have been volatile, with recent improvements but still relatively low at 2.60%. The EBIT and EBITDA margins have improved significantly, reflecting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.64 suggests a moderate level of leverage, which is manageable. Return on equity has improved but remains low at 7.55%, indicating limited profitability from shareholders' investments. The equity ratio of 30.71% shows a balanced capital structure, but there is room for strengthening equity.

Cash Flow

Cash flow performance is a concern, with negative free cash flow growth and a negative operating cash flow. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is also negative, suggesting difficulties in converting profits into cash.

Breakdown	TTM	Jun 2025	Mar 2023	Mar 2022	Mar 2021	Mar 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: 90.00
• 50DMA: Negative
• 100DMA: Negative
• 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:SRT, the sentiment is Negative. The current price of 90 is above the 20-day moving average (MA) of 86.33, above the 50-day MA of 89.83, and above the 200-day MA of 83.43, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 46.55 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 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	£118.65M	11.06	25.90%	2.00%	8.19%	―
SDI	70 Neutral	£77.38M	12.03	9.07%	―	7.36%	31.93%
SOLI	68 Neutral	£91.34M	8.13	3.91%	1.56%	8.75%	-54.73%
GHH	65 Neutral	£199.81M	25.56	3.10%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SRT	56 Neutral	£223.44M	88.18	10.42%	―	―	―
TTG	54 Neutral	£204.77M	-4.83	-31.42%	―	-16.33%	-448.12%

SRT Marine Systems Corporate Events

SRT Marine Systems Secures US$261m Sovereign Maritime Surveillance Contract

SRT Marine Systems has signed a US$261 million contract with a new sovereign customer to supply a national maritime domain awareness system, surpassing an earlier expected value of about US$200 million. Activation of the project depends on completion of a UK Export Finance-backed project finance package, highlighting the role of government support in funding large-scale maritime surveillance infrastructure.

The deal expands SRT’s portfolio to about £340 million of active projects under implementation, plus the newly signed but not yet commenced US$261 million contract and a prospects pipeline estimated at up to £1.8 billion. Management says heightened geopolitical tensions, particularly in the Middle East, are driving stronger demand for independent sovereign surveillance systems, reinforcing SRT’s positioning as a key supplier of national-scale maritime monitoring capabilities.

The most recent analyst rating on (GB:SRT) stock is a Hold with a £85.00 price target. To see the full list of analyst forecasts on SRT Marine Systems stock, see the GB:SRT Stock Forecast page.

SRT Marine Systems Wins $20.5m Follow-On Sovereign Contract

SRT Marine Systems has secured a new $20.5 million systems contract with an existing sovereign customer, extending a previously deployed maritime surveillance solution. The follow-on order will expand the scope of the customer’s maritime domain awareness capabilities, underscoring ongoing demand from government clients for SRT’s intelligence-led surveillance systems and reinforcing its role as a long-term strategic partner in national maritime security programs.

The most recent analyst rating on (GB:SRT) stock is a Hold with a £85.00 price target. To see the full list of analyst forecasts on SRT Marine Systems stock, see the GB:SRT Stock Forecast page.

SRT Marine Systems Issues New Shares Following Employee Option Conversions

SRT Marine Systems has issued and allotted 30,000 new ordinary shares at an exercise price of 0.1p each following the conversion of employee share options, with admission to trading on AIM expected on 12 February 2026. After admission, the company’s total share capital will comprise 251,620,656 ordinary shares carrying one vote each, a change that slightly enlarges its equity base and updates the reference point for shareholders’ voting rights and regulatory disclosure thresholds under UK transparency rules.

The most recent analyst rating on (GB:SRT) stock is a Hold with a £87.00 price target. To see the full list of analyst forecasts on SRT Marine Systems stock, see the GB:SRT Stock Forecast page.

SRT Marine Systems Nearly Doubles H1 Revenue as Contract Pipeline Underpins Growth Outlook

SRT Marine Systems reported a strong first half for the 2026 financial year, with unaudited revenues nearly doubling to £51.1m and profit before tax rising 47% to £3.1m, alongside an 85% increase in gross cash to £41.5m. Both its Navigation Safety and Integrated Marine Surveillance Systems divisions performed in line with expectations, underpinned by execution on four major system projects and ongoing support of a fifth, while management highlighted a £300m active contract book and a £1.8bn opportunity pipeline, including a pending $200m award, as indicators of sustained global demand and potential upside for growth in the second half and beyond.

The most recent analyst rating on (GB:SRT) stock is a Hold with a £80.00 price target. To see the full list of analyst forecasts on SRT Marine Systems stock, see the GB:SRT Stock Forecast page.