SysGroup (SYS) AI Stock Analysis

• Market Cap: £13.38M
• Dividend Yield: N/A
• Average Volume (3M): 135.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -7.45%
• EPS Growth: 78.23%
• 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: 0.11
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -11.66
• 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: 51 Neutral
• Price Target: 17.00p ▲(0.00% Upside)

SysGroup's overall stock score is primarily influenced by its financial performance and technical analysis, both of which indicate challenges with profitability and bearish market momentum. However, positive corporate events, including strategic shifts and leadership confidence, provide some optimism for future growth. The valuation remains a concern due to negative earnings and lack of dividend yield.

Positive Factors

Recurring subscription revenue

A subscription-based managed services model provides durable, predictable revenue and higher customer stickiness. Over 2-6 months this supports better cash flow visibility, easier upsell of cloud/cybersecurity services, and scalability of margins as fixed costs spread across recurring contracts.

Strategic shift to MSP and cybersecurity

Repositioning toward MSP and cybersecurity aligns SysGroup with structural demand for managed security and cloud services. This strengthens competitive positioning and cross-selling potential, increasing long-term revenue stickiness and relevance as clients outsource more IT/security functions.

Free cash flow growth

Positive free cash flow growth despite losses indicates improving cash conversion and potential to fund operations or invest without immediate financing. Sustained FCF improvement would bolster financial flexibility and support strategic initiatives over the medium term.

Negative Factors

Declining revenue trend

A persistent decline in revenue erodes scale advantages and constrains investment in product development and sales. Over months this can pressure margins, reduce market share momentum, and require price or cost actions that undermine long-term competitive positioning if not reversed.

Negative operating cash flow

Negative operating cash flow signals the core business is not generating sufficient cash to sustain operations or growth. This creates reliance on financing or asset sales, limits reinvestment capacity, and is a structural risk to sustainable expansion absent operational improvement.

Negative return on equity and profitability

A negative ROE and ongoing negative margins indicate the company is not generating shareholder value from current capital. Over time this can erode equity, limit access to capital, and force strategic trade-offs or restructuring to restore profitability and long-term viability.

SysGroup Business Overview & Revenue Model

Company Description

SysGroup plc, together with its subsidiaries, provides managed IT and cloud hosting services in the United Kingdom and internationally. It operates through two segments, Managed IT Services and Value Added Resale. The company offers public, private, and hybrid cloud services, as well as virtual private cloud, PCI-DSS hosting, cloud desktop, and SysCloud services; managed IT services comprising managed cloud, managed infrastructure, managed IT support, managed virtual desktop, managed office 365, managed AWS, and managed azure; disaster recovery, sys-assure 365, and back up services; and IT security services, such as penetration testing, endpoint security, DDOS, email security, security awareness training, firewalls, multi factor authentication, and GDPR automation services. It also provides connectivity solutions, and IT consultancy services; and sells IT hardware, licenses, and warranties from supplier partners. The company serves charity, education, financial, government, healthcare, legal, leisure, manufacturing, retail, and tech industries. The company was formerly known as Daily Internet PLC and changed its name to SysGroup plc in July 2016. SysGroup plc was incorporated in 2007 and is based in Liverpool, the United Kingdom.

How the Company Makes Money

SysGroup generates revenue primarily through its managed IT services, which include cloud hosting, cybersecurity, and IT support. The company typically operates on a subscription-based model, allowing clients to pay a recurring fee for ongoing services. Additionally, SysGroup earns income from consulting services and project-based engagements, where clients seek specific expertise for IT deployments or upgrades. Significant partnerships with technology providers enhance its offerings and can lead to additional revenue streams through collaborative projects and integrated solutions. Overall, SysGroup's ability to adapt its services to meet client needs while maintaining strong partnerships contributes to its financial performance.

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	20.27M	20.50M	22.71M	21.65M	14.75M	18.13M
Gross Profit	7.74M	10.01M	10.40M	11.10M	8.92M	10.50M
EBITDA	-217.00K	92.00K	-3.76M	2.52M	2.60M	2.30M
Net Income	-2.18M	-1.83M	-5.90M	-7.00K	451.00K	240.00K
Balance Sheet
Total Assets	36.37M	37.95M	30.45M	39.12M	27.56M	27.33M
Cash, Cash Equivalents and Short-Term Investments	8.12M	8.74M	1.94M	4.19M	4.13M	3.47M
Total Debt	5.06M	5.14M	5.34M	5.51M	1.14M	1.59M
Total Liabilities	13.52M	14.21M	15.68M	17.69M	6.30M	6.71M
Stockholders Equity	22.85M	23.73M	14.77M	21.43M	21.26M	20.61M
Cash Flow
Free Cash Flow	-716.00K	-1.37M	-369.00K	2.30M	1.42M	2.13M
Operating Cash Flow	-555.00K	-620.00K	190.00K	2.72M	2.31M	2.70M
Investing Cash Flow	-850.00K	-689.00K	-559.00K	-5.80M	-891.00K	-1.55M
Financing Cash Flow	-403.00K	8.11M	-1.87M	3.14M	-758.00K	-713.00K

SysGroup Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 17 is above the 20-day moving average (MA) of 15.38, above the 50-day MA of 16.03, and below the 200-day MA of 18.53, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 54.85 is Neutral, neither overbought nor oversold. The STOCH value of 46.11 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
BYIT	76 Outperform	£871.16M	16.66	68.93%	5.54%	7.83%	2.36%
CNS	65 Neutral	£51.22M	-40.00	-9.83%	―	-5.43%	-292.31%
BKS	64 Neutral	£150.58M	50.23	7.35%	―	26.09%	32.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYS	51 Neutral	£13.38M	-6.25	-9.20%	―	-7.45%	78.23%
CLCO	41 Neutral	£988.70K	―	―	―	―	―
IOM	40 Underperform	£20.09M	-0.33	-67.57%	23.79%	25.44%	-1877.56%

SysGroup Corporate Events

SysGroup acquires Saxis to bolster infrastructure and mid-market reach

SysGroup plc has acquired UK-based Saxis Group Limited, a specialist in enterprise storage, data protection and hybrid infrastructure solutions, for an initial cash consideration of £1.25 million plus a potential earn-out of up to £0.5 million, funded from existing cash resources. The deal, which brings in Saxis’s NetApp-focused expertise and a diversified customer base across public and private sectors such as media, entertainment, housing and education, is intended to broaden SysGroup’s end-to-end proposition, enhance its infrastructure technology capabilities and create cross-selling opportunities in managed services, cybersecurity and cloud. With Saxis generating around £2.1 million of revenue and £0.5 million of normalised EBITDA in the year to 29 September 2025, the acquisition underpins SysGroup’s strategy of combining organic and inorganic growth to build sustainable, profitable operations and deepen its presence in resilient, regulated markets.

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 Appoints AI Advisor to Drive Growth

SysGroup plc has appointed Dr. David K. Park as Advisor to the Board on Artificial Intelligence, aiming to enhance its services and accelerate growth in the IT services landscape. Dr. Park’s extensive experience in AI transformation and strategic roles is expected to help SysGroup leverage AI to strengthen its operating model and identify growth opportunities.

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’s Strategic Shift and AI Integration Drive Growth

SysGroup has reported its half-year results, highlighting a strategic shift towards a consultative, end-to-end Managed IT Service Provider model, which is yielding positive outcomes. The company has seen significant growth in its cybersecurity revenue, now comprising 47% of total revenue, and has secured a major contract with a UK non-profit. AI integration across operations has improved service quality and customer satisfaction, while also reducing headcount and increasing productivity. Despite a slight decline in revenue compared to the previous year, SysGroup’s Managed IT Services are stabilizing, and the company is poised for growth in FY27, leveraging AI-driven efficiencies and a streamlined operating model.

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 to Announce Half Year Results for 2025

SysGroup plc has announced that it will release its Half Year Results for the period ending 30 September 2025 on 3 December 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and future 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.