SysGroup (SYS) AI Stock Analysis

• Market Cap: £14.64M
• Dividend Yield: N/A
• Average Volume (3M): 135.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: -9.74%
• EPS Growth: 79.93%
• Country: UK
• Employees: 112
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.01
• Shares Outstanding: 83,653,694
• 10 Day Avg. Volume: 37,671
• 30 Day Avg. Volume: 135,670
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: 17.00p ▼(-2.86% Downside)

SysGroup's overall stock score is primarily influenced by its financial performance, which highlights significant challenges in profitability and cash flow generation. Technical analysis provides a mixed view with short-term bullish momentum but potential caution due to overbought signals. Valuation is negatively impacted by the lack of profitability and absence of dividends. The absence of earnings call and corporate events data means these factors do not influence the score.

SysGroup Business Overview & Revenue Model

Company Description

SysGroup (SYS) is a UK-based technology company specializing in providing managed IT services and cloud solutions. The company operates primarily in the IT services sector, focusing on delivering innovative digital transformation solutions, cybersecurity, and infrastructure management. SysGroup's core offerings include cloud hosting, IT support, and consultancy services aimed at enhancing operational efficiency for businesses of various sizes.

How the Company Makes Money

SysGroup generates revenue through multiple streams, primarily from its managed services and cloud solutions. The company charges clients for ongoing support and management of their IT infrastructure, which includes services like cloud hosting, cybersecurity measures, and IT consultancy. Additionally, SysGroup earns revenue from project-based engagements, where they implement IT solutions tailored to specific client needs. Key partnerships with technology providers and software vendors also contribute to their revenue model, allowing them to offer a broader range of services and maintain competitive pricing. The company's focus on recurring revenue through long-term contracts enhances its financial stability and predictability.

SysGroup Financial Statement Overview

Summary

SysGroup faces challenges with declining revenues and profitability, as evidenced by negative margins and net income. The balance sheet shows a stable equity position with moderate leverage, but the negative return on equity is concerning. Cash flow analysis highlights issues with operational cash generation, although free cash flow growth is a positive sign. Overall, the company needs to address its profitability and cash flow generation to improve its financial health.

Income Statement

SysGroup's income statement shows a declining revenue trend with a negative revenue growth rate of -6.41% in the most recent year. The company is struggling with profitability, as indicated by negative net profit and EBIT margins. However, the gross profit margin remains relatively stable at 48.83%, suggesting some efficiency in managing production costs.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.22, indicating a manageable level of leverage. However, the return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is not explicitly provided, but the company's equity position appears stable relative to its assets.

Cash Flow

SysGroup's cash flow statement reveals a significant increase in free cash flow growth, but operating cash flow is negative, raising concerns about cash generation from core operations. The free cash flow to net income ratio is positive, indicating that the company is generating cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.50M	20.50M	22.71M	21.65M	14.75M	18.13M
Gross Profit	7.91M	10.01M	10.40M	11.10M	8.92M	10.50M
EBITDA	119.00K	92.00K	-3.76M	2.44M	2.62M	2.41M
Net Income	-1.83M	-1.83M	-5.90M	-7.00K	451.00K	240.00K
Balance Sheet
Total Assets	37.95M	37.95M	30.45M	39.12M	27.56M	27.33M
Cash, Cash Equivalents and Short-Term Investments	8.74M	8.74M	1.94M	4.19M	4.13M	3.47M
Total Debt	5.14M	5.14M	5.34M	5.51M	1.14M	1.59M
Total Liabilities	14.21M	14.21M	15.68M	17.69M	6.30M	6.71M
Stockholders Equity	23.73M	23.73M	14.77M	21.43M	21.26M	20.61M
Cash Flow
Free Cash Flow	-866.00K	-1.37M	-369.00K	2.30M	1.42M	2.13M
Operating Cash Flow	-687.00K	-620.00K	190.00K	2.72M	2.31M	2.70M
Investing Cash Flow	-1.06M	-689.00K	-559.00K	-5.80M	-891.00K	-1.55M
Financing Cash Flow	8.54M	8.11M	-1.87M	3.14M	-758.00K	-713.00K

SysGroup Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SYS, the sentiment is Neutral. The current price of 17.5 is above the 20-day moving average (MA) of 17.15, above the 50-day MA of 16.73, and below the 200-day MA of 19.48, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 78.08 is Negative, neither overbought nor oversold. The STOCH value of 52.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SYS.

SysGroup Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FIN	―	£7.97M	23.71	13.03%	―	9.45%	-86.94%
SWG	―	£14.18M	-5.02	―	―	―	―
SYS	―	£14.64M	-7.23	-9.53%	―	-9.74%	79.93%
IOM	―	£23.35M	-0.42	-58.97%	19.82%	12.92%	-949.57%
CLCO	―	£1.48M	―	―	―	―	―

SysGroup Corporate Events

SysGroup Successfully Passes All AGM Resolutions

SysGroup plc announced that all resolutions proposed at its Annual General Meeting were passed with the requisite majority. This includes the reappointment of directors and auditors, as well as authorizations related to share allotment and market purchases. The successful passage of these resolutions is likely to reinforce SysGroup’s operational stability and strategic direction, potentially enhancing its position in the UK mid-market for cloud, cybersecurity, and AI solutions.

The most recent analyst rating on (GB:SYS) stock is a Hold with a £17.00 price target. To see the full list of analyst forecasts on SysGroup stock, see the GB:SYS Stock Forecast page.

SysGroup Chairman Increases Stake with Significant Share Purchase

SysGroup plc announced that Executive Chairman Heejae Chae has acquired 250,000 ordinary shares at an average price of 15.5 pence per share, increasing his beneficial interest to approximately 11.91% of the company’s issued share capital. This transaction highlights a significant investment by the company’s leadership, potentially signaling confidence in SysGroup’s strategic direction and future growth prospects.

The most recent analyst rating on (GB:SYS) stock is a Hold with a £17.00 price target. To see the full list of analyst forecasts on SysGroup stock, see the GB:SYS Stock Forecast page.

SysGroup Announces Share Option Exercise by Former CFO

SysGroup plc announced that its former Chief Financial Officer, Martin Audcent, has exercised options over 400,000 ordinary shares. This exercise does not alter the company’s issued ordinary share capital, which remains at 85,515,091 shares, with 83,653,697 total voting rights available for shareholders. This move is part of the company’s ongoing management of its share capital and does not impact the company’s market positioning or operations.

The most recent analyst rating on (GB:SYS) stock is a Hold with a £17.00 price target. To see the full list of analyst forecasts on SysGroup stock, see the GB:SYS Stock Forecast page.

SysGroup Announces Share Awards Under Performance Share Plan

SysGroup plc announced the grant of share awards to its Executive Directors and PDMRs under the Performance Share Plan, reflecting current market values to align with shareholder interests. These awards, part of the Value Creation Plan approved in 2024, will not be exercisable until 2029, ensuring participants benefit from only one plan, which could influence the company’s strategic alignment and stakeholder interests.

The most recent analyst rating on (GB:SYS) stock is a Hold with a £17.00 price target. To see the full list of analyst forecasts on SysGroup stock, see the GB:SYS Stock Forecast page.

SysGroup Announces AGM and Publishes Annual Report for 2025

SysGroup plc has announced the publication of its Notice of Annual General Meeting and Annual Report and Accounts for the financial year ending 31 March 2025. These documents, now available to shareholders and online, highlight the company’s ongoing commitment to digital and AI transformation services for UK SMEs. The AGM is scheduled for 16 September 2025 in Manchester, marking an important event for stakeholders to discuss the company’s strategic direction and performance.

SysGroup Chairman Increases Stake with Significant Share Purchase

SysGroup plc announced that Executive Chairman Heejae Chae has purchased 1,056,376 ordinary shares, increasing his stake to approximately 11.66% of the company’s issued share capital. This move signifies confidence in the company’s strategic direction and could strengthen its market position, potentially impacting stakeholder perceptions positively.

SysGroup Announces Strategic Transformation and Financial Results for FY25

SysGroup plc has announced its final results for the year ending March 31, 2025, highlighting a strategic transformation towards becoming a full-spectrum solutions provider at the intersection of cybersecurity and AI. The company has repositioned itself from legacy hosting to a consultative model, enhancing capabilities through acquisitions and partnerships, and restructuring operations to improve efficiency and service quality. Financially, SysGroup reported a revenue decline due to churn but improved gross margins and a strengthened cash position from a successful equity fundraise. The company is optimistic about its future in the growing cybersecurity and AI markets, aiming to deliver sustained value through disciplined execution and strategic investments.