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Tern PLC (GB:TERN)
LSE:TERN
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Tern plc (TERN) AI Stock Analysis

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GB:TERN

Tern plc

(LSE:TERN)

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Underperform 38 (OpenAI - 4o)
Rating:38Underperform
Price Target:
0.50p
▲(19.05% Upside)
Tern plc's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue and negative profitability. The technical analysis indicates bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Tern plc (TERN) vs. iShares MSCI United Kingdom ETF (EWC)

Tern plc Business Overview & Revenue Model

Company DescriptionTern plc (TERN) is a UK-based investment company that specializes in the technology sector, focusing on digital transformation and the Internet of Things (IoT). The company primarily invests in early-stage technology businesses that are developing innovative software solutions and applications aimed at enhancing operational efficiencies across various industries. Tern aims to create value through strategic investments, providing not just capital but also guidance and support to its portfolio companies to help them grow and achieve their potential.
How the Company Makes MoneyTern plc generates revenue primarily through capital appreciation from its investments in technology companies. The company's revenue model is centered on equity stakes in its portfolio firms, which may lead to significant returns when these companies grow, either through public offerings or acquisitions. Tern also benefits from potential dividend payouts if its portfolio companies become profitable. Key revenue streams include realized gains from exits and potentially management fees associated with managing its investments. Additionally, Tern may have partnerships with technology firms and venture capital entities that can provide synergies and enhance the growth trajectory of its investee companies, contributing to its earnings.

Tern plc Financial Statement Overview

Summary
Tern plc faces significant financial challenges, with declining revenue, negative profitability, and cash flow issues. The company's low leverage is a positive aspect, but it must focus on reversing revenue declines and improving operational efficiency to enhance profitability and cash flow generation.
Income Statement
20
Very Negative
Tern plc's income statement reveals significant challenges. The company has experienced a drastic decline in revenue, with a negative growth rate of 75.08% in the most recent year. Net profit margin is deeply negative at -216.76%, indicating substantial losses relative to revenue. Both EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. The company needs to address its revenue decline and improve cost management to enhance profitability.
Balance Sheet
40
Negative
The balance sheet shows a low debt-to-equity ratio of 0.015, suggesting minimal leverage and a conservative capital structure. However, the return on equity is negative at -35.22%, indicating that the company is not generating returns on shareholders' equity. The equity ratio is relatively healthy, but the company must improve its profitability to enhance shareholder value.
Cash Flow
30
Negative
Cash flow analysis highlights negative operating cash flow and free cash flow, with a decline in free cash flow growth by 25.81%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The company must focus on improving cash generation from operations to support its financial stability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue29.40K17.40K199.23K-8.34M6.10M2.14M
Gross Profit29.40K17.40K199.23K66.01K63.78K151.16K
EBITDA-1.13M-1.18M-12.67M-10.25M0.000.00
Net Income-2.07M-3.77M-12.61M-10.45M4.58M803.89K
Balance Sheet
Total Assets10.94M11.31M13.15M25.18M32.76M24.30M
Cash, Cash Equivalents and Short-Term Investments74.00K382.21K297.56K931.76K1.96M2.13M
Total Debt170.00K161.11K418.20K0.000.000.00
Total Liabilities655.00K597.62K848.44K325.00K342.06K295.60K
Stockholders Equity10.29M10.71M12.30M24.85M32.42M24.00M
Cash Flow
Free Cash Flow-1.16M-1.57M-1.22M-2.20M-1.48M-1.19M
Operating Cash Flow-1.16M-1.57M-1.22M-2.20M-1.48M-1.19M
Investing Cash Flow-442.39K-406.39K151.92K-1.63M-2.50M-1.86M
Financing Cash Flow1.55M1.65M431.54K2.80M3.81M4.17M

Tern plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.42
Price Trends
50DMA
0.67
Negative
100DMA
0.95
Negative
200DMA
1.10
Negative
Market Momentum
MACD
-0.07
Negative
RSI
28.83
Positive
STOCH
23.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TERN, the sentiment is Negative. The current price of 0.42 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.67, and below the 200-day MA of 1.10, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 28.83 is Positive, neither overbought nor oversold. The STOCH value of 23.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TERN.

Tern plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
43
Neutral
£4.07M-75.42%-38.77%-1.67%
38
Underperform
£2.96M-19.70%-77.04%86.67%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TERN
Tern plc
0.42
-0.92
-68.66%
GB:ING
Ingenta
76.00
-5.41
-6.65%
CINGF
Coinsilium Group
0.05
0.03
150.00%
GB:EXR
VR Education Holdings
0.78
-0.07
-8.24%
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.Date of analysis: Oct 02, 2025