System1 Group PLC (GB:SYS1)
LSE:SYS1
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System1
(LSE:SYS1)
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Rating:70Outperform
Price Target:
301.00 p
▲(25.42% Upside)
Action:UpgradedDate:03/20/26
The score is driven primarily by strong financial performance (high margins, low leverage, strong ROE) and supportive recent price trend versus short-to-mid-term averages. Offsetting factors are a very expensive valuation (P/E 67.27) and overbought technical signals (RSI 78.26; Stoch 84.88), which raise near-term risk.
Positive Factors
High Profitability and Margins
Sustained high gross and healthy EBIT/EBITDA margins indicate durable pricing power and low variable costs in core operations. Over 2-6 months this supports reinvestment in ad-tech and owned properties, funds strategic initiatives, and provides a cushion versus cyclical ad spend volatility.
Negative Factors
EPS Decline
A roughly 10.6% drop in EPS points to underlying pressure on per-share profitability. If this trend continues it can impair retained earnings growth and investor returns, and may signal margin mix shifts or cost/distribution dynamics that need multi-quarter correction.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability and Margins
Sustained high gross and healthy EBIT/EBITDA margins indicate durable pricing power and low variable costs in core operations. Over 2-6 months this supports reinvestment in ad-tech and owned properties, funds strategic initiatives, and provides a cushion versus cyclical ad spend volatility.
Read all positive factors
System1 (SYS1) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£38.32M
Dividend Yield2.29%
Average Volume (3M)45.82K
Price to Earnings (P/E)67.3
Beta (1Y)-0.59
Revenue Growth3.32%
EPS Growth-10.58%
CountryUK
Employees160
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)<0.01
Shares Outstanding12,689,073
10 Day Avg. Volume30,319
30 Day Avg. Volume45,820
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)5.47
Price to Sales (P/S)2.06
P/FCF Ratio15.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£550.00Price Target Upside129.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.23
Revenue Forecast (FY)£38.80M
System1 Business Overview & Revenue Model
Company Description
System1 (SYS1) is a technology-driven company that specializes in digital advertising and consumer insights. Operating primarily in the digital marketing sector, System1 leverages its proprietary technology to optimize advertising campaigns and en...
How the Company Makes Money
System1 primarily makes money through advertising and marketing services. Its core revenue model is performance-based advertising: the company delivers consumer traffic and leads to advertising and marketing partners and earns fees that are typica...
System1 Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.21M | 37.43M | 30.02M | 23.41M | 24.10M | 22.84M |
| Gross Profit | 30.30M | 32.86M | 26.12M | 19.72M | 20.20M | 19.11M |
| EBITDA | 4.46M | 6.70M | 4.40M | 2.04M | 2.06M | 4.33M |
| Net Income | 2.83M | 4.47M | 2.03M | 404.00K | 955.00K | 1.69M |
Balance Sheet | ||||||
| Total Assets | 20.44M | 21.98M | 19.09M | 14.98M | 18.59M | 17.41M |
| Cash, Cash Equivalents and Short-Term Investments | 10.75M | 12.83M | 9.61M | 5.72M | 11.17M | 9.01M |
| Total Debt | 1.13M | 526.00K | 346.00K | 1.46M | 5.01M | 5.08M |
| Total Liabilities | 6.08M | 7.88M | 8.52M | 6.37M | 10.33M | 10.17M |
| Stockholders Equity | 14.36M | 14.10M | 10.57M | 8.61M | 8.26M | 7.23M |
Cash Flow | ||||||
| Free Cash Flow | 3.50M | 4.92M | 5.10M | -1.88M | 3.90M | 3.71M |
| Operating Cash Flow | 3.67M | 5.51M | 5.93M | -628.00K | 4.04M | 3.91M |
| Investing Cash Flow | -627.00K | -595.00K | -833.00K | -1.25M | -138.00K | -198.00K |
| Financing Cash Flow | -1.23M | -1.33M | -1.12M | -3.82M | -1.95M | -1.09M |
System1 Technical Analysis
Positive
240.00
Price Trends
236.90
Positive
229.27
Positive
287.03
Positive
Market Momentum
20.08
Negative
71.64
Negative
75.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SYS1, the sentiment is Positive. The current price of 240 is below the 20-day moving average (MA) of 274.30, above the 50-day MA of 236.90, and below the 200-day MA of 287.03, indicating a bullish trend. The MACD of 20.08 indicates Negative momentum. The RSI at 71.64 is Negative, neither overbought nor oversold. The STOCH value of 75.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SYS1.
System1 Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £38.32M | 67.27 | 19.89% | 2.29% | 3.32% | -10.58% | |
70 Outperform | £201.73M | 10.47 | 6.46% | 3.68% | 15.99% | ― | |
65 Neutral | £139.14M | 18.54 | 24.52% | 1.09% | -21.19% | -29.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | £244.65M | -5.55 | -4.92% | 6.33% | -14.27% | -15466.67% | |
48 Neutral | £16.33M | -0.82 | -37.24% | ― | -0.79% | -100.22% | |
46 Neutral | £12.00M | -0.89 | -3.41% | ― | -25.20% | 78.55% |
* Communication Services Sector Average
GB:SYS1
System1
302.00
-230.39
-43.27%
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System1 Corporate Events
Business Operations and StrategyFinancial Disclosures
System1 Sees Record H2 Revenue and Upgraded Profit Outlook for FY27
Positive
Mar 16, 2026
System1 Group, the AIM-quoted marketing decision-making platform, reported that strong trading in its final quarter will deliver record second-half revenue for the year to 31 March 2026, in line with earlier guidance. The company highlighted robus...
Business Operations and StrategyRegulatory Filings and Compliance
System1 Corrects Founder Share Sale as Kearon Fully Exits Stake
Neutral
Mar 5, 2026
System1 Group PLC has corrected details of a major share transaction involving its founder and former non-executive director John Kearon, who has now been confirmed to have sold his entire remaining stake in the company. The revised disclosure sta...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
System1 Confirms Founder John Kearon Steps Down After Stake Sale to Brave Bison
Neutral
Mar 3, 2026
System1 Group PLC announced a board change following the sale of founder John Kearon’s 23.01% shareholding to Brave Bison Group plc, confirming that Kearon has stepped down as a director with immediate effect. The exit of a major shareholder...
Business Operations and Strategy
System1 Founder Sells Stake as Brave Bison Takes Near-28% Strategic Holding
Positive
Mar 2, 2026
System1 Group PLC has disclosed a major change in its shareholder base after founder and non-executive director John Kearon sold his entire 23.01% stake to digital media group Brave Bison at an implied price of 248.64 pence per share. Following th...
Business Operations and StrategyExecutive/Board Changes
System1 Adds Major Shareholder Representative Lewis Robinson to Board
Positive
Mar 2, 2026
System1 Group PLC has appointed Lewis Robinson as a non-executive director to its board with immediate effect, adding an asset management specialist with experience advising family offices and running UK-focused investment funds. Robinson, founder...
Business Operations and StrategyExecutive/Board Changes
System1 Reshapes Board Oversight, Integrates QualCo Role Into Full Board
Neutral
Jan 30, 2026
System1 Group PLC has announced changes to its board governance structure, integrating the remit of its recently formed QualCo committee into the full board and confirming founder John Kearon’s ongoing role as a non-executive director. The b...
Business Operations and StrategyDividendsFinancial Disclosures
System1 Q3 Platform Revenue Rebounds as New Clients Offset Consultancy Weakness
Neutral
Jan 20, 2026
System1 Group PLC reported that platform revenue in the third quarter to 31 December 2025 recovered versus the first half, matching the prior year’s record Q3 and rising 1% in constant currency, driven by a rebound in ad-testing demand from ...
Business Operations and Strategy
System1 Adds Singer Capital Markets as Joint Corporate Broker
Positive
Jan 12, 2026
System1 Group PLC has appointed Singer Capital Markets as a joint corporate broker, working alongside its existing nominated adviser and broker, Canaccord Genuity Limited. The move is likely aimed at strengthening the company’s capital marke...
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.