Shearwater (SWG) AI Stock Analysis

• Market Cap: £9.65M
• Dividend Yield: N/A
• Average Volume (3M): 38.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 90
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.01
• Shares Outstanding: 23,829,712
• 10 Day Avg. Volume: 30,021
• 30 Day Avg. Volume: 38,950
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 6.93
• 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: 50 Neutral
• Price Target: 41.00 p ▼(-14.58% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by weak financial quality—loss-making operations and declining/free cash flow despite strong revenue growth—partly offset by supportive short-term technical momentum (price above 20/50 DMA and positive MACD). Valuation is also constrained by the loss-driven negative P/E and no dividend yield data.

Positive Factors

Strong revenue growth

Sustained top-line growth near 35% signals strong product-market fit and demand in renewables and resource management. Over 2-6 months this growth supports scale economics, funds continued R&D and sales investment, and provides a runway to drive operating leverage toward profitability.

Diversified recurring revenue streams

A mix of subscription software, hardware IoT sales, consulting and maintenance creates recurring and multi-stream revenue. This reduces customer concentration risk, smooths cash receipts long-term, and strengthens customer lock-in via integrated analytics and support agreements.

Conservative leverage and healthy capital structure

Low leverage and a healthy equity ratio provide financial flexibility to invest in product development and commercial expansion without immediate refinancing pressure. This conservative balance sheet reduces insolvency risk and lengthens the runway while profitability is being pursued.

Negative Factors

Persistent negative profitability

Ongoing negative net and EBIT margins show the company is not yet converting sales into profit. Over the medium term this can deplete equity, necessitate external capital, and limit reinvestment capacity unless margins improve via cost control or higher-margin offerings.

Declining gross margin

A falling gross margin suggests rising direct costs or pricing pressure on products and services. Structurally weaker gross margins compress potential operating profits even with revenue growth, making durable margin recovery necessary for sustainable long-term profitability.

Weak cash generation and declining FCF

Declining free cash flow and low operating cash flow relative to net income limit internal funding for growth and increase reliance on external financing. This constrains flexibility, raises liquidity risk, and may force dilution or slower expansion absent improved cash conversion.

Shearwater Business Overview & Revenue Model

Company Description

Shearwater Group plc provides operational resilience solutions in the United Kingdom, Europe, North America, and internationally. It operates through two segments, Software and Services. The company offers SecurEnvoy, a software that provides identity and access management solutions; and Geolang, a software that delivers data discovery, data extraction, and data loss prevention solutions, services, and technologies to discover, classify, and protect sensitive data and information in the cloud and on premise. It also provides cyber security, network monitoring technologies, and managed security services; business and technology regulatory risk assurance and advisory services; and penetration testing, red teaming, and offensive security consultancy services. The company was formerly known as Aurum Mining Plc and changed its name to Shearwater Group PLC in January 2017. Shearwater Group plc was incorporated in 2004 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Shearwater generates revenue through multiple streams, including the sale of software licenses and subscription services for its data analytics platforms. Additionally, the company earns income from hardware sales related to its IoT devices and sensors, which are essential for monitoring and managing resources in real-time. Consulting services also contribute to revenue, as organizations seek Shearwater's expertise in implementing sustainable solutions. Strategic partnerships with governmental bodies and private sector companies enhance its market reach and drive sales, while ongoing maintenance and support contracts provide a steady income stream.

Shearwater Financial Statement Overview

Summary

Strong revenue growth (34.97%) is offset by weak profitability (negative net and EBIT margins), declining gross margin, and pressured cash generation (declining free cash flow and low operating cash flow to net income). Balance sheet leverage is conservative, but negative ROE signals ongoing losses.

Income Statement

Shearwater's revenue has shown significant growth of 34.97% in the latest period, indicating strong top-line performance. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has also declined over time, suggesting rising costs or pricing pressures.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating conservative leverage and financial stability. However, the return on equity is negative, reflecting ongoing losses and inefficiencies in generating returns from equity. The equity ratio is healthy, suggesting a strong capital structure.

Cash Flow

Operating cash flow has improved but remains insufficient to cover net income, as indicated by a low operating cash flow to net income ratio. Free cash flow has declined, and the free cash flow growth rate is negative, highlighting potential liquidity challenges.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	23.44M	31.64M	22.64M	26.69M	35.88M	31.77M
Gross Profit	6.20M	4.18M	6.85M	3.32M	7.41M	6.70M
EBITDA	-534.00K	-7.21M	320.00K	-6.42M	4.46M	3.39M
Net Income	-2.82M	-9.57M	-2.17M	-8.18M	-292.00K	145.00K
Balance Sheet
Total Assets	54.90M	53.23M	62.23M	69.70M	78.61M	72.68M
Cash, Cash Equivalents and Short-Term Investments	3.00M	5.06M	4.97M	3.96M	5.58M	8.05M
Total Debt	300.00K	267.00K	378.00K	321.00K	206.00K	1.06M
Total Liabilities	10.50M	19.50M	16.25M	21.58M	22.40M	16.19M
Stockholders Equity	44.40M	33.73M	45.98M	48.12M	56.21M	56.49M
Cash Flow
Free Cash Flow	2.09M	1.62M	1.23M	-1.41M	-1.60M	5.84M
Operating Cash Flow	2.13M	1.64M	2.30M	-74.00K	-456.00K	6.59M
Investing Cash Flow	-1.05M	-1.37M	-1.07M	-1.34M	-1.15M	-737.00K
Financing Cash Flow	-292.00K	-185.00K	-216.00K	-200.00K	-872.00K	-1.15M

Shearwater Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SWG, the sentiment is Negative. The current price of 48 is above the 20-day moving average (MA) of 43.55, above the 50-day MA of 45.31, and below the 200-day MA of 51.72, indicating a bearish trend. The MACD of -1.14 indicates Positive momentum. The RSI at 31.95 is Neutral, neither overbought nor oversold. The STOCH value of 34.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SWG.

Shearwater Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BGO	69 Neutral	£55.08M	-7.22	-9.07%	―	6.40%	70.78%
CNS	64 Neutral	£60.18M	-9.78	-9.83%	―	-5.43%	-292.31%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PCIP	56 Neutral	£38.04M	-11.38	31.19%	―	25.15%	―
SYS	51 Neutral	£11.30M	-3.01	-9.36%	―	-7.45%	78.23%
SWG	50 Neutral	£9.65M	-1.17	―	―	―	―
IOM	43 Neutral	£14.88M	-0.96	-99.34%	23.79%	25.44%	-1877.56%

Shearwater Corporate Events

Shearwater lifts revenue 31% on services growth and major contract wins

Shearwater Group reported a 31% rise in interim revenue to £14.0m for the six months to 31 December 2025, driven largely by 37% growth in its Services business, which now contributes 92% of total sales. Adjusted EBITDA was flat at breakeven, but administrative expenses fell 6% as prior-year restructuring and cost-reduction measures took effect, while cash was temporarily lower at £2.2m due to project timing.

Operationally, the group secured material contract wins and extensions with major telecoms, financial institutions and UK government departments, including a £7.3m mobile operator extension and a post-period £9m renewal with a global bank. With a new chair in place, a strong sales pipeline, and margin improvement expected from new solutions in the seasonally stronger second half, the board reiterated confidence in meeting full-year market expectations amid robust growth in the wider cybersecurity market.

The most recent analyst rating on (GB:SWG) stock is a Hold with a £43.00 price target. To see the full list of analyst forecasts on Shearwater stock, see the GB:SWG Stock Forecast page.

Shearwater’s Brookcourt Wins £1.3m Network Monitoring Deal with Major UK Telco

Shearwater Group’s subsidiary Brookcourt Solutions has won a contract worth about £1.3 million to supply and install an advanced network monitoring solution for a major UK telecommunications provider. The project is designed to give the telco greater visibility over its network infrastructure, enabling proactive performance monitoring and issue detection to support the resilience of its multi-award-winning network.

The solution deployment is set to begin shortly, with the entire contract value to be recognised in Shearwater’s FY26 results, providing a clear boost to that year’s performance. Management said the win underscores Brookcourt’s technical capabilities in handling large, complex network environments and reinforces Shearwater’s positioning as a key cybersecurity and managed security partner to major enterprise customers.

The most recent analyst rating on (GB:SWG) stock is a Hold with a £42.00 price target. To see the full list of analyst forecasts on Shearwater stock, see the GB:SWG Stock Forecast page.

Shearwater Sets Date for Interim Results and Investor Presentation

Shearwater Group plc will publish its interim results for the six months ended 31 December 2025 on 17 March 2026, as the cybersecurity and managed security services provider continues to execute its buy-and-build growth strategy in the sector. The company’s CEO and CFO will host a live investor presentation on the same day via the Investor Meet Company platform, offering both existing and potential shareholders an opportunity to engage directly with management and submit questions around performance and outlook.

The most recent analyst rating on (GB:SWG) stock is a Hold with a £43.00 price target. To see the full list of analyst forecasts on Shearwater stock, see the GB:SWG Stock Forecast page.

Shearwater’s Brookcourt Wins £9m Global Financial Cyber Defence Contract

Shearwater Group’s subsidiary Brookcourt Solutions has secured a three-year, approximately £9 million renewal and expansion contract with a leading global financial institution to deliver, implement and support an advanced email security solution across the customer’s worldwide operations. The deal renews existing advanced email gateway and insider threat management services while expanding secure email gateway capacity, with around £2.7 million of revenue to be recognised in FY26, reinforcing Shearwater’s FY26 market expectations, highlighting Brookcourt’s strength in enterprise-scale cybersecurity deployments, and supporting the Group’s strategy of building recurring, high-value revenues from market-leading cyber defence solutions.

The most recent analyst rating on (GB:SWG) stock is a Hold with a £46.00 price target. To see the full list of analyst forecasts on Shearwater stock, see the GB:SWG Stock Forecast page.

Shearwater Confirms Total Voting Rights at 23.8 Million Shares

Shearwater Group has confirmed that as of 30 January 2026 its issued share capital comprises 23,829,712 ordinary shares, all of which carry voting rights, with no shares held in treasury. This updated total voting rights figure provides the benchmark shareholders must use to assess and notify any changes in their holdings under UK financial disclosure rules, clarifying the company’s current equity base and ensuring transparency in the market for its AIM-listed stock.

The most recent analyst rating on (GB:SWG) stock is a Hold with a £46.00 price target. To see the full list of analyst forecasts on Shearwater stock, see the GB:SWG Stock Forecast page.

Shearwater Group Names Robin Southwell OBE as New Chair as David Williams Steps Down

Shearwater Group plc has announced that long-serving Chair David Williams will step down on 31 January 2026 after more than a decade with the company, following a period in which the group has focused on rebuilding organically and has reported more positive FY25 results, leaving the business with a stronger balance sheet and pipeline. Independent non-executive director Robin Southwell OBE, who has been on the board since 2016 and brings four decades of aerospace and defence leadership experience, will succeed him as Chair and also lead the Remuneration and Nomination Committees, a move that signals continuity in governance and strategic direction at what the board describes as an “exciting time” for the cybersecurity and managed security services provider.

The most recent analyst rating on (GB:SWG) stock is a Hold with a £46.00 price target. To see the full list of analyst forecasts on Shearwater stock, see the GB:SWG Stock Forecast page.

Shearwater Expands £1m UK Government Threat Intelligence Contract

Shearwater Group has expanded an existing contract with a central UK Government department to provide threat intelligence services supporting internal security operations, lifting the total contract value to around £1 million over three years through both an extended term and increased service consumption. Under the new arrangement, the department will act as a lead organisation, consolidating threat intelligence services for smaller Government bodies via an internal shared-services model, a move that underpins Shearwater’s financial expectations for FY26 and reinforces its positioning as a key cybersecurity partner to the public sector while providing a platform for further growth.

The most recent analyst rating on (GB:SWG) stock is a Hold with a £43.00 price target. To see the full list of analyst forecasts on Shearwater stock, see the GB:SWG Stock Forecast page.