Shearwater Group PLC (GB:SWG)
LSE:SWG
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Shearwater
(LSE:SWG)
Select Model
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Rating:50Neutral
Price Target:
40.00 p
▼(-16.67% Downside)
Action:ReiteratedDate: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
Revenue Growth
A near-35% top-line expansion indicates robust demand for Shearwater's cybersecurity offerings. Sustained revenue momentum supports scale, improves leverage potential in services delivery, and creates a larger base for cross-sell and contract renewals over the next several quarters.
Negative Factors
Negative profitability
Ongoing negative net and EBIT margins show the company is not converting revenue into sustainable profits. Persistent unprofitability limits reinvestment capacity, raises dependence on external funding, and challenges long-term shareholder value creation unless margins meaningfully improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
A near-35% top-line expansion indicates robust demand for Shearwater's cybersecurity offerings. Sustained revenue momentum supports scale, improves leverage potential in services delivery, and creates a larger base for cross-sell and contract renewals over the next several quarters.
Read all positive factors
Shearwater (SWG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£9.53M
Dividend YieldN/A
Average Volume (3M)38.95K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees90
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.01
Shares Outstanding23,829,712
10 Day Avg. Volume30,021
30 Day Avg. Volume38,950
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.33
Price to Sales (P/S)0.35
P/FCF Ratio6.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.05
Revenue Forecast (FY)£35.50M
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 iden...
How the Company Makes Money
SWG makes money primarily by selling cybersecurity services and solutions through its operating subsidiaries. Revenue is typically generated from: (1) recurring managed services contracts (e.g., ongoing monitoring, detection/response, and managed ...
Shearwater Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| 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
Neutral
48.00
Price Trends
42.87
Negative
43.98
Negative
51.17
Negative
Market Momentum
-1.13
Negative
48.87
Neutral
76.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SWG, the sentiment is Neutral. The current price of 48 is above the 20-day moving average (MA) of 39.25, above the 50-day MA of 42.87, and below the 200-day MA of 51.17, indicating a neutral trend. The MACD of -1.13 indicates Negative momentum. The RSI at 48.87 is Neutral, neither overbought nor oversold. The STOCH value of 76.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SWG.
Shearwater Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | £50.08M | -5.27 | -10.96% | ― | 6.40% | 70.78% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | £67.61M | 9.55 | -3.99% | ― | -5.43% | -292.31% | |
56 Neutral | £35.86M | -11.38 | 31.19% | ― | 25.15% | ― | |
50 Neutral | £9.53M | -1.17 | ― | ― | ― | ― | |
45 Neutral | £11.30M | -3.01 | -9.36% | ― | -7.45% | 78.23% | |
43 Neutral | £13.77M | -0.96 | -99.34% | 23.79% | 25.44% | -1877.56% |
* Technology Sector Average
GB:SWG
Shearwater
40.00
8.50
26.98%
GB:BGO
Bango plc
65.00
-7.50
-10.34%
GB:CNS
Corero Network Security
13.20
-1.50
-10.20%
GB:IOM
Iomart Group plc
12.13
-18.88
-60.89%
GB:PCIP
PCI PAL
49.50
6.00
13.79%
GB:SYS
SysGroup
13.50
-6.00
-30.77%
Shearwater Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Shearwater Reshapes Board as Trading Outlook Remains On Track
Positive
Apr 1, 2026
Shearwater Group plc, the cybersecurity advisory and managed security services provider, announced that long-serving Non-Executive Director Giles Willits has stepped down from the board with effect from 1 April 2026, following more than a decade w...
Business Operations and StrategyExecutive/Board Changes
Shearwater Board Changes as Trading Stays on Track
Positive
Apr 1, 2026
Shearwater Group plc, the AIM-listed cybersecurity, advisory and managed security services specialist, has announced that long-serving Non-Executive Director Giles Willits has stepped down from the board after more than a decade with the company. ...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Shearwater lifts revenue 31% on services growth and major contract wins
Positive
Mar 17, 2026
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, ...
Business Operations and StrategyFinancial Disclosures
Shearwater’s Brookcourt Wins £1.3m Network Monitoring Deal with Major UK Telco
Positive
Mar 12, 2026
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...
Business Operations and StrategyFinancial Disclosures
Shearwater Sets Date for Interim Results and Investor Presentation
Neutral
Mar 3, 2026
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...
Business Operations and StrategyFinancial Disclosures
Shearwater’s Brookcourt Wins £9m Global Financial Cyber Defence Contract
Positive
Feb 3, 2026
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 securit...
Regulatory Filings and Compliance
Shearwater Confirms Total Voting Rights at 23.8 Million Shares
Neutral
Jan 30, 2026
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 benchm...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Shearwater Group Names Robin Southwell OBE as New Chair as David Williams Steps Down
Positive
Jan 15, 2026
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 mor...
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.