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Shearwater Group PLC (GB:SWG)
LSE:SWG

Shearwater (SWG) AI Stock Analysis

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GB

Shearwater

(LSE:SWG)

Rating:54Neutral
Price Target:
Shearwater's overall stock score reflects a mix of strengths and challenges. The company's stable balance sheet and improving cash flow are positive, but significant profitability issues and negative valuation metrics weigh heavily. Positive corporate events offer some optimism for future growth and stability.

Shearwater (SWG) vs. iShares MSCI United Kingdom ETF (EWC)

Shearwater Business Overview & Revenue Model

Company DescriptionShearwater (SWG) is a company specializing in geophysical services, primarily serving the oil and gas industry. It provides advanced marine seismic acquisition and processing services to help explore and evaluate the subsurface geology of potential hydrocarbon reserves. The company's offerings include a range of technologies and services designed to deliver high-quality seismic data for exploration and production activities.
How the Company Makes MoneyShearwater generates revenue through the provision of its geophysical services, mainly to large oil and gas companies seeking to explore and develop new hydrocarbon resources. The company charges clients for the use of its seismic vessels, equipment, and expertise in acquiring and interpreting seismic data. Shearwater's key revenue streams include contract services for seismic data acquisition and processing projects, as well as long-term partnerships with energy companies that require ongoing geophysical support. Additionally, the company may engage in joint ventures or collaborations with other industry players to enhance its service offerings and expand its market reach.

Shearwater Financial Statement Overview

Summary
Shearwater's financial performance is mixed. The income statement reveals challenges in profitability and revenue stability, with a significant decline in revenue and a negative net profit margin. However, the balance sheet is stable with low leverage, and cash flow shows improvement with positive free cash flow.
Income Statement
45
Neutral
Shearwater's income statement shows significant volatility in revenue trends, with a notable decline of 15.1% from 2023 to 2024. The company struggles with profitability, indicated by a negative net profit margin of -9.6% in 2024, despite a slightly improved EBITDA margin of 1.4%. The gross profit margin remains low at 14.7%, suggesting challenges in cost management or pricing strategy.
Balance Sheet
55
Neutral
The balance sheet reveals a relatively strong equity position, with an equity ratio of 73.9% in 2024, indicating financial stability. However, the company has a low debt-to-equity ratio of 0.008, which is positive but could indicate under-leverage. Return on equity is negative at -4.7%, reflecting the company's ongoing profitability challenges.
Cash Flow
60
Neutral
Cash flow analysis shows improvement, with a positive free cash flow of 1.2 million in 2024, up from negative values in previous years. The operating cash flow to net income ratio is positive at 1.06, indicating better cash generation relative to net income. However, the free cash flow to net income ratio reflects challenges at 0.57, suggesting room for improving cash efficiency.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue23.44M22.64M26.69M35.88M31.77M33.00M
Gross Profit6.20M6.85M3.32M7.41M6.70M7.45M
EBITDA-534.00K320.00K-6.42M4.46M3.39M2.03M
Net Income-2.82M-2.17M-8.18M-292.00K145.00K-1.50M
Balance Sheet
Total Assets54.90M62.23M69.70M78.61M72.68M71.49M
Cash, Cash Equivalents and Short-Term Investments3.00M4.97M3.96M5.58M8.05M3.34M
Total Debt300.00K378.00K321.00K206.00K1.06M5.30M
Total Liabilities10.50M16.25M21.58M22.40M16.19M18.98M
Stockholders Equity44.40M45.98M48.12M56.21M56.49M52.51M
Cash Flow
Free Cash Flow2.09M1.23M-1.41M-1.60M5.84M3.79M
Operating Cash Flow2.13M2.30M-74.00K-456.00K6.59M5.22M
Investing Cash Flow-1.05M-1.07M-1.34M-1.15M-737.00K-1.40M
Financing Cash Flow-292.00K-216.00K-200.00K-872.00K-1.15M-1.07M

Shearwater Technical Analysis

Technical Analysis Sentiment
Positive
Last Price47.00
Price Trends
50DMA
42.95
Positive
100DMA
38.07
Positive
200DMA
37.04
Positive
Market Momentum
MACD
0.82
Positive
RSI
58.18
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SWG, the sentiment is Positive. The current price of 47 is above the 20-day moving average (MA) of 45.91, above the 50-day MA of 42.95, and above the 200-day MA of 37.04, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SWG.

Shearwater Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBBAG
76
Outperform
£773.17M19.4113.01%2.94%5.10%3.23%
64
Neutral
£122.45M239.770.76%1.17%1.71%-89.07%
63
Neutral
£566.00M24.41-6.00%2.49%3.52%-29.29%
GBNCC
59
Neutral
£442.81M-10.60%2.10%
GBSWG
54
Neutral
£11.20M-6.16%-11.19%63.83%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SWG
Shearwater
47.00
8.50
22.08%
GB:NCC
NCC Group plc
142.00
-4.95
-3.37%
GB:BAG
AG Barr
694.00
95.00
15.86%
GB:TRCS
Tracsis
415.00
-294.89
-41.54%

Shearwater Corporate Events

Business Operations and Strategy
Shearwater Secures £8.4m Contract Renewal with Major Telco
Positive
Apr 2, 2025

Shearwater Group plc has announced a significant contract renewal worth approximately £8.4 million with a major telecommunications and media company, extending their partnership for an additional two years. This extension underscores Shearwater’s role as a trusted provider of cybersecurity and monitoring solutions, expected to contribute to substantial growth in revenue and Adjusted EBITDA for FY25, aligning with market expectations and reinforcing its industry standing.

Other
Shearwater CFO Increases Stake in Company Shares
Positive
Feb 17, 2025

Shearwater Group PLC announced that its Chief Financial Officer, Jonathan Hall, has purchased 13,500 ordinary shares, representing a 0.06% stake in the company. This transaction highlights an internal vote of confidence in Shearwater’s market position and potential growth, possibly impacting investor perception positively.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025