Tern plc (TERN) AI Stock Analysis

• Market Cap: £2.96M
• Dividend Yield: N/A
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.23
• Revenue Growth: -77.04%
• EPS Growth: 86.67%
• Country: UK
• Employees: 8
• Sector: Financial
• Sector Strength: 70
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 672,713,700
• 10 Day Avg. Volume: 5,434,891
• 30 Day Avg. Volume: 3,408,929
• PEG Ratio: 0.02
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 358.23
• P/FCF Ratio: -3.97
• 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: £0.50
• Price Target Upside: 19.05% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 38 Underperform
• 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 Business Overview & Revenue Model

Company Description

Tern 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 Money

Tern 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.40K	17.40K	199.23K	-8.34M	6.10M	2.14M
Gross Profit	29.40K	17.40K	199.23K	66.01K	63.78K	151.16K
EBITDA	-1.13M	-1.18M	-12.67M	-10.25M	0.00	0.00
Net Income	-2.07M	-3.77M	-12.61M	-10.45M	4.58M	803.89K
Balance Sheet
Total Assets	10.94M	11.31M	13.15M	25.18M	32.76M	24.30M
Cash, Cash Equivalents and Short-Term Investments	74.00K	382.21K	297.56K	931.76K	1.96M	2.13M
Total Debt	170.00K	161.11K	418.20K	0.00	0.00	0.00
Total Liabilities	655.00K	597.62K	848.44K	325.00K	342.06K	295.60K
Stockholders Equity	10.29M	10.71M	12.30M	24.85M	32.42M	24.00M
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	-406.39K	151.92K	-1.63M	-2.50M	-1.86M
Financing Cash Flow	1.55M	1.65M	431.54K	2.80M	3.81M	4.17M

Tern plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EXR	43 Neutral	£4.07M	―	-75.42%	―	-38.77%	-1.67%
TERN	38 Underperform	£2.96M	―	-19.70%	―	-77.04%	86.67%