SRT Marine Systems (SRT) AI Stock Analysis

• Market Cap: £230.21M
• Dividend Yield: N/A
• Average Volume (3M): 436.42K
• Price to Earnings (P/E): 101.7
• Beta (1Y): 0.15
• 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: -0.76
• 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: 55 Neutral
• Price Target: 93.00p ▲(3.33% 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

Strong Revenue Growth

A 558% spike in the latest period indicates strong demand traction and successful commercial execution. Sustained top-line expansion enlarges addressable market share, enables operating leverage, and funds product development and service scale, supporting durable growth over months.

Healthy Gross Margin & Improving EBITDA

A gross margin above 30% plus improving EBIT/EBITDA margins signal efficient production and operational tightening. Margin sustainability supports reinvestment in R&D and services, and provides buffer against cyclical revenue swings, underpinning medium-term profitability resilience.

Manageable Leverage

Moderate leverage (D/E ~0.64) and a balanced equity ratio indicate the company isn’t overburdened by debt. This capital structure gives flexibility to fund growth initiatives, absorb short-term shocks, and pursue contracts without excessive interest strain, aiding medium-term financial stability.

Negative Factors

Negative Operating & Free Cash Flow

Persistent negative operating and free cash flow undermines the firm's ability to self-fund growth and sustain operations. Over a multi-month horizon this raises refinancing and liquidity risk, can force higher working capital financing, and constrains strategic spending and margin improvement efforts.

Low Net Margin & Weak ROE

Low net margin and sub-10% ROE reflect limited conversion of revenue into shareholder returns. This diminishes internal capital generation, reduces buffer against cost inflation, and suggests profitability improvements must be sustained to justify ongoing investment and strengthen long-term returns.

Contract-Driven Revenue Can Be Lumpy

Dependence on large, long-term government and agency contracts can produce lumpy revenue and delayed receipts. Structurally, this raises working-capital volatility and cash flow timing risk; absent smoother recurring retail or subscription streams, cash generation may remain uneven over months.

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

SRT Marine Systems shows strong revenue growth and improving operational efficiency, but profitability and cash flow management are concerns. The balance sheet indicates moderate leverage, but cash flow issues could pose risks if not addressed.

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	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: Neutral
• Last Price: 90.00
• 50DMA: Positive
• 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 Neutral. The current price of 90 is below the 20-day moving average (MA) of 93.16, above the 50-day MA of 87.38, and above the 200-day MA of 80.11, indicating a neutral trend. The MACD of 1.03 indicates Positive momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 31.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	£141.90M	27.23	27.08%	2.00%	8.19%	―
SDI	70 Neutral	£85.75M	18.72	9.34%	―	7.36%	31.93%
SOLI	68 Neutral	£91.34M	37.79	3.88%	1.56%	8.75%	-54.73%
GHH	67 Neutral	£196.52M	55.68	3.13%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SRT	55 Neutral	£230.21M	101.67	―	―	―	―
TTG	54 Neutral	£218.66M	-3.12	-31.42%	―	-16.33%	-448.12%

SRT Marine Systems Corporate Events

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.

SRT Marine Systems PLC Announces Successful AGM Results

SRT Marine Systems PLC announced that all resolutions were passed at their recent AGM, indicating strong shareholder support. This development reinforces SRT’s position in the maritime domain awareness industry and suggests continued confidence in their strategic direction, potentially benefiting stakeholders involved in maritime security and environmental protection.

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.

SRT Marine Systems Announces Investor Open Day and AGM

SRT Marine Systems PLC has announced an Investor Open Day and Annual General Meeting (AGM) scheduled for December 4, 2025, at their headquarters in Midsomer Norton, Bath, UK. This event is an opportunity for stakeholders and interested parties to engage with the company’s operations, experience live product demonstrations, and interact with staff and board members. The open day aims to strengthen stakeholder relationships and provide insights into the company’s activities, potentially enhancing its market positioning and operational transparency.

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.