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System1
(LSE:SYS1)
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Rating:61Neutral
Price Target:
364.00 p
▲(5.51% Upside)
Action:Downgraded
Date:07/10/26
The score is primarily supported by strong financial footing (low leverage and solid balance-sheet flexibility), but is tempered by uneven profitability/cash-flow performance (notably the 2026 step-down) and weak near-term technical momentum. Valuation appears relatively rich at a ~29.5 P/E, with only a modest dividend yield providing support.
Positive Factors
Balance Sheet Strength
A conservatively financed balance sheet with very modest debt and growing equity provides durable financial flexibility. Low leverage reduces refinancing risk, supports opportunistic investment or buybacks, and helps the company withstand ad-market cyclicality without forcing asset sales.
Negative Factors
Profitability Volatility
Large swings in margins and net income reduce earnings predictability and constrain long-term planning. Volatile profitability undermines the company’s ability to commit to multi-year investments, increases sensitivity to one-time items or cost shocks, and raises execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A conservatively financed balance sheet with very modest debt and growing equity provides durable financial flexibility. Low leverage reduces refinancing risk, supports opportunistic investment or buybacks, and helps the company withstand ad-market cyclicality without forcing asset sales.
Read all positive factors
System1 (SYS1) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£41.24M
Dividend Yield1.69%
Average Volume (3M)45.82K
Price to Earnings (P/E)31.4
Beta (1Y)-0.66
Revenue Growth-1.27%
EPS Growth-70.61%
CountryUK
Employees184
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.10
Shares Outstanding12,689,073
10 Day Avg. Volume30,319
30 Day Avg. Volume45,820
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)2.40
Price to Sales (P/S)0.93
P/FCF Ratio18.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£610.00Price Target Upside76.81% 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 Group PLC, along with its affiliated entities, specializes in offering marketing and market research advisory services. The firm provides a suite of proprietary solutions, including a predictive marketing platform that leverages collective...
How the Company Makes Money
System1 primarily makes money by monetizing consumer intent through performance-based advertising. A key revenue stream is advertising and customer-acquisition campaigns sold to advertisers, where System1 is paid when users take desired actions (e...
System1 Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
82
Very Positive
Cash Flow
55
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.95M | 37.43M | 30.02M | 23.41M | 24.10M |
| Gross Profit | 30.78M | 32.86M | 26.12M | 19.72M | 20.20M |
| EBITDA | 3.89M | 6.70M | 4.40M | 2.04M | 2.06M |
| Net Income | 1.31M | 4.47M | 2.03M | 404.00K | 955.00K |
Balance Sheet | |||||
| Total Assets | 22.32M | 21.98M | 19.09M | 14.98M | 18.59M |
| Cash, Cash Equivalents and Short-Term Investments | 12.38M | 12.83M | 9.61M | 5.72M | 11.17M |
| Total Debt | 994.00K | 526.00K | 346.00K | 1.46M | 5.01M |
| Total Liabilities | 7.92M | 7.88M | 8.52M | 6.37M | 10.33M |
| Stockholders Equity | 14.40M | 14.10M | 10.57M | 8.61M | 8.26M |
Cash Flow | |||||
| Free Cash Flow | 1.90M | 4.92M | 5.10M | -1.88M | 3.90M |
| Operating Cash Flow | 2.00M | 5.51M | 5.93M | -628.00K | 4.04M |
| Investing Cash Flow | -640.00K | -595.00K | -833.00K | -1.25M | -138.00K |
| Financing Cash Flow | -1.99M | -1.33M | -1.12M | -3.82M | -1.95M |
System1 Technical Analysis
Positive
345.00
Price Trends
323.76
Positive
304.11
Positive
262.72
Positive
Market Momentum
3.36
Positive
47.29
Neutral
16.67
Positive
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 345 is above the 20-day moving average (MA) of 327.90, above the 50-day MA of 323.76, and above the 200-day MA of 262.72, indicating a neutral trend. The MACD of 3.36 indicates Positive momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | £301.55M | 24.62 | 6.46% | 3.84% | 2.11% | 818.58% | |
61 Neutral | £41.24M | 31.40 | 9.14% | 1.59% | -1.27% | -70.61% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | £249.62M | -10.23 | -4.92% | 3.10% | -11.01% | 92.56% | |
55 Neutral | £165.60M | -77.65 | -6.04% | ― | -12.14% | -117.78% | |
54 Neutral | £16.31M | -0.85 | -28.86% | ― | 1.84% | -1966.67% | |
45 Neutral | £13.03M | -0.93 | -55.27% | ― | -4.43% | -281.20% |
* Communication Services Sector Average
GB:SYS1
System1
325.00
-82.69
-20.28%
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GB:SFOR
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76.03%
System1 Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
System1 Withdraws Shareholder Support Claims Amid Takeover Panel Scrutiny
Neutral
Jul 17, 2026
System1 Group PLC issued a clarification after the UK Takeover Panel requested withdrawal of earlier statements suggesting shareholder support for a possible offer, noting these comments had not been prepared in line with relevant takeover rules. ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
System1 Board Rejects Brave Bison’s Low-Premium Takeover Approach
Positive
Jul 17, 2026
System1 Group PLC has firmly rejected Brave Bison Group PLC’s possible takeover offer, arguing that the proposed mix of cash and shares, which implies only a small premium to the pre-offer share price and even a discount on more recent price...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
System1 Board Rejects Brave Bison’s Revised Takeover Approach
Positive
Jul 13, 2026
System1’s board has unanimously rejected unsolicited all-share and cash-and-share proposals from Brave Bison Group, arguing that both the initial and revised offers materially undervalue the company. The initial approach offered no premium a...
DividendsShareholder Meetings
System1 Sets Final Dividend Timetable for October 2026
Positive
Jul 8, 2026
System1 Group PLC has announced a proposed final dividend of 6 pence per ordinary share, to be paid on or around 19 October 2026, contingent on shareholder approval at the Annual General Meeting on 25 September 2026. Shareholders on the register a...
Business Operations and StrategyDividendsFinancial Disclosures
System1 posts record second-half revenue as investments weigh on annual profit
Neutral
Jul 8, 2026
System1 reported flat full-year revenue of £37m for the year to 31 March 2026, as 3% growth in platform income offset a sharp fall in bespoke consultancy work amid tariff-driven pressure on advertising budgets. Profit before tax dropped to &#...
Business Operations and StrategyFinancial Disclosures
System1 Schedules Virtual FY26 Results Presentation for Investors
Positive
Jul 2, 2026
System1 Group PLC has announced that Chief Executive Officer James Gregory and Chief Financial Officer Chris Willford will host a live virtual presentation on the company’s FY26 results on 8 July 2026 via the Investor Meet Company platform. ...
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.