SysGroup (SYS) AI Stock Analysis

• Market Cap: £18.32M
• Dividend Yield: N/A
• Average Volume (3M): 23.79K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.14
• Revenue Growth: 2.89%
• EPS Growth: -804.62%
• Country: UK
• Employees: 112
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Infrastructure
• EPS (TTM): -0.12
• Shares Outstanding: 83,253,700
• 10 Day Avg. Volume: 20,286
• 30 Day Avg. Volume: 23,792
• PEG Ratio: <0.01
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -46.25
• 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

SysGroup receives a score of 55, reflecting a mixed outlook. The company faces significant financial challenges, with declining profitability and cash flow issues. However, strategic investments and partnerships offer potential growth opportunities. The stock shows moderate technical momentum, though valuation concerns due to negative earnings weigh on the overall assessment.

SysGroup Business Overview & Revenue Model

Company Description

SysGroup (SYS) is a leading managed IT services and cloud hosting provider based in the United Kingdom. The company operates primarily in the IT services sector, offering a comprehensive suite of solutions including managed IT, cloud hosting, IT security services, and consultancy. SysGroup is dedicated to helping businesses optimize their IT infrastructure and operations through tailor-made services that enhance efficiency and security.

How the Company Makes Money

SysGroup makes money primarily through offering managed IT services and cloud hosting solutions. The company's revenue model focuses on long-term service contracts with businesses that require consistent IT support and infrastructure management. Key revenue streams include subscription fees for managed services, consultancy fees for IT strategy development, and sales from IT security solutions. SysGroup's financial performance is further supported by strategic partnerships with leading technology providers, which enable them to offer cutting-edge solutions and maintain competitive pricing. Additionally, SysGroup benefits from the growing demand for cloud and IT security services, driven by digital transformation trends across various industries.

SysGroup Financial Statement Overview

Summary

SysGroup faces challenges with declining profitability and cash flow generation, despite growth in revenue. The balance sheet shows moderate leverage but declining equity, pointing to potential financial instability. Overall, the company needs to address its profitability and cash flow issues to improve its financial health.

Income Statement

SysGroup has shown a notable revenue growth over the years, however, profitability is a concern with declining margins and a significant net loss in the most recent period. The gross profit margin decreased slightly in the latest year, and the company posted negative EBIT and EBITDA margins, indicating operational challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, suggesting reasonable leverage. However, the decline in stockholders' equity and total assets indicates weakening financial stability. The equity ratio has decreased, reflecting lower financial flexibility.

Cash Flow

SysGroup's cash flow position has weakened, with operating cash flow dropping significantly. Free cash flow turned negative, indicating potential difficulties in generating cash internally. The operating cash flow to net income ratio has become unfavorable, highlighting cash flow management issues.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
22.71M	21.65M	14.75M	18.13M	19.49M
	Gross Profit
10.40M	11.10M	8.92M	10.50M	11.20M
	EBIT
-6.00M	378.00K	725.00K	313.00K	-28.00K
	EBITDA
-3.76M	2.44M	2.62M	2.41M	2.14M
	Net Income Common Stockholders
-5.90M	-7.00K	451.00K	240.00K	-122.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.94M	4.19M	4.13M	3.47M	3.04M
	Total Assets
30.45M	39.12M	27.56M	27.33M	29.33M
	Total Debt
5.34M	5.51M	1.14M	1.59M	2.11M
	Net Debt
3.40M	1.32M	-2.99M	-1.88M	-930.00K
	Total Liabilities
15.68M	17.69M	6.30M	6.71M	9.26M
	Stockholders Equity
14.77M	21.43M	21.26M	20.61M	20.07M
Cash Flow		Free Cash Flow
-369.00K	2.30M	1.42M	2.13M	1.39M
	Operating Cash Flow
190.00K	2.72M	2.31M	2.70M	1.93M
	Investing Cash Flow
-559.00K	-5.80M	-891.00K	-1.55M	-1.59M
	Financing Cash Flow
-1.87M	3.14M	-758.00K	-713.00K	-677.00K

SysGroup Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.00
• 50DMA: Positive
• 100DMA: Positive
• 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:SYS, the sentiment is Positive. The current price of 22 is above the 20-day moving average (MA) of 21.98, above the 50-day MA of 20.69, and below the 200-day MA of 25.20, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 62.46 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SYS.

SysGroup Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.58B	10.33	-7.23%	2.94%	7.47%	-10.84%
SYS	55 Neutral	£18.32M	―	-26.77%	―	2.89%	-804.62%
BIRD	49 Neutral	£14.52M	―	-28.72%	―	-17.02%	10.29%
SYN	40 Underperform	£2.88M	0.45	56.96%	―	-55.66%	―

SysGroup Corporate Events

SysGroup Strengthens Position with Strategic Investments and AWS Partnership

SysGroup plc announced its year-end trading update, reporting revenues of £20.5m and an adjusted EBITDA of £0.9m, aligning with market expectations. Despite a decrease in revenue from the previous year, the company has strengthened its financial position with a significant increase in cash reserves. SysGroup has made strategic investments, including the acquisition of Crossword Consulting Limited and enhancements to its AI service desk platform. The company achieved AWS Advanced Partner status and expanded its cybersecurity offerings, positioning itself as a key player in the UK’s technology services sector. These developments are expected to drive growth and deepen customer relationships, aligning with SysGroup’s strategic vision.

Spark’s Take on GB:SYS Stock

According to Spark, TipRanks’ AI Analyst, GB:SYS is a Neutral.

SysGroup’s overall stock score of 55 reflects mixed financial performance, with significant challenges in profitability and cash flow. However, technical analysis shows moderate momentum, and recent corporate events highlight strategic growth initiatives. Valuation concerns due to negative earnings weigh on the score, but insider confidence through share purchases offers a positive outlook.

To see Spark’s full report on GB:SYS stock, click here.

SysGroup Reports FY25 Trading Update and Strategic Investments

SysGroup plc reported a trading update for the year ending March 31, 2025, with revenues of £20.5 million and an adjusted EBITDA of £0.9 million, aligning with market expectations despite a decrease from the previous year. The company made significant investments to enhance its position as a top provider of AI and machine learning solutions for SMEs, achieving milestones such as AWS Advanced Partner status and expanding its cybersecurity offerings. These strategic moves, supported by a strong cash position, aim to drive growth and solidify SysGroup’s market presence.

Spark’s Take on GB:SYS Stock

According to Spark, TipRanks’ AI Analyst, GB:SYS is a Neutral.

SysGroup’s overall stock score of 55 reflects mixed financial performance, with significant challenges in profitability and cash flow. However, technical analysis shows moderate momentum, and recent corporate events highlight strategic growth initiatives. Valuation concerns due to negative earnings weigh on the score, but insider confidence through share purchases offers a positive outlook.

To see Spark’s full report on GB:SYS stock, click here.

SysGroup Enhances Data Security Offerings Through Rubrik Partnership

SysGroup plc has joined Rubrik’s Advanced Partner Program, enhancing its ability to deliver Rubrik’s data security and recovery solutions across the UK. This partnership positions SysGroup to better address the growing demand for secure, scalable, and AI-powered solutions, reinforcing its commitment to future-proofing IT infrastructures for UK organizations. By integrating Rubrik Security Cloud, SysGroup aims to provide robust data protection and support business growth in a complex digital landscape.