Worldsec (WSL) AI Stock Analysis

• Market Cap: £1.06M
• Dividend Yield: N/A
• Average Volume (3M): 1.54K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 166
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): >-0.01
• Shares Outstanding: 85,101,875
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,538
• PEG Ratio: 0.13
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 2.62
• P/FCF Ratio: -4.95
• 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: 52 Neutral
• Price Target: 1.50p ▲(20.00% Upside)

Worldsec's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and negative cash flows. However, positive corporate events and strategic investments provide some optimism. Technical analysis suggests potential for a rebound, but valuation uncertainty remains a concern.

Positive Factors

Recurring revenue & partnerships

A diversified revenue mix of subscriptions, licensing and managed services builds recurring income and higher-margin revenue. Strategic vendor and government partnerships strengthen go-to-market reach, credibility and cross-sell potential, supporting steadier long-term cash flow.

Low leverage / strong equity

Minimal financial leverage and a solid equity base give management flexibility to fund restructuring, strategic investments or M&A without near-term solvency pressure. This supports endurance through cyclical weakness and underpins longer-term recovery options.

Supportive corporate actions

Recent corporate moves show management executing strategic investments and returning income, while shareholder approval signals alignment. These structural actions indicate a deliberate turnaround strategy and governance alignment that can improve credibility and capital allocation.

Negative Factors

Severe revenue decline

A dramatic revenue contraction undermines core business stability and suggests client loss or failed contracts. Sustained top-line erosion reduces scale benefits, hampers R&D and sales investment, and weakens the firm’s ability to rebuild recurring revenue over the medium term.

Negative operating & free cash flow

Persistently negative operating and free cash flow limits internal funding for product development, client onboarding and debt servicing. Over months this forces external financing or asset optimization, constraining strategic initiatives and increasing financial vulnerability.

Inefficient return on equity

A negative ROE indicates the company is not generating returns from shareholder capital, reflecting operational or pricing issues. Over time this erodes investor confidence and signals the need for structural margin or business-model fixes to restore capital efficiency.

Worldsec Business Overview & Revenue Model

Company Description

Worldsec Limited, a closed-ended investment company, invests in small to medium sized trading companies in the Greater China and South East Asian regions. The company was founded in 1991 and is based in Sheung Wan, Hong Kong.

How the Company Makes Money

Worldsec generates revenue through multiple streams, primarily by offering subscription-based models for its cybersecurity services and consulting solutions. Key revenue streams include licensing fees from proprietary software, ongoing managed services contracts, and project-based consulting fees. Additionally, the company has established strategic partnerships with leading technology vendors and government agencies, enhancing its market reach and capability to deliver comprehensive security solutions. By maintaining a focus on high-margin services and expanding its client base across various industries, WSL continues to drive its earnings growth.

Worldsec Financial Statement Overview

Summary

Worldsec faces significant financial challenges, with declining revenues and profitability, despite a strong equity position. The company's cash flow situation is troubling, with negative operating and free cash flows. While leverage is low, the negative return on equity and profitability issues highlight operational inefficiencies and potential risks.

Income Statement

Worldsec's income statement reveals significant volatility. The company experienced a sharp decline in revenue growth rate, with a negative 335.65% in the latest year, indicating a substantial drop in revenue. Gross profit margin decreased to 46.56% from 56.44% the previous year, and the net profit margin turned negative at -10.81%, reflecting operational challenges. Despite a positive EBIT margin in 2023, it turned negative in 2024, highlighting profitability issues.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.01, indicating minimal leverage. However, the return on equity is negative at -1.01%, suggesting inefficiencies in generating returns from equity. The equity ratio remains stable, reflecting a solid capital structure, but the negative ROE is a concern.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, with a decline in free cash flow growth by 15.14%. The operating cash flow to net income ratio is negative, showing cash flow challenges. The free cash flow to net income ratio is stable at 1.0, but the overall cash flow situation is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	581.00K	509.00K	629.00K	-241.00K	1.23M	1.49M
Gross Profit	581.00K	237.00K	355.00K	-521.00K	934.00K	1.49M
EBITDA	0.00	15.00K	126.00K	-776.00K	708.00K	1.02M
Net Income	-6.00K	-55.00K	58.00K	-843.00K	636.00K	944.00K
Balance Sheet
Total Assets	5.43M	5.65M	5.78M	5.66M	6.59M	5.99M
Cash, Cash Equivalents and Short-Term Investments	837.00K	1.06M	1.31M	623.00K	2.14M	1.30M
Total Debt	19.00K	55.00K	125.00K	55.00K	119.00K	180.00K
Total Liabilities	90.00K	212.00K	282.00K	215.00K	282.00K	327.00K
Stockholders Equity	5.34M	5.43M	5.50M	5.44M	6.31M	5.67M
Cash Flow
Free Cash Flow	-239.00K	-269.00K	-417.00K	-443.00K	-177.00K	-235.00K
Operating Cash Flow	-239.00K	-269.00K	-417.00K	-443.00K	-177.00K	-235.00K
Investing Cash Flow	-59.00K	-77.00K	1.08M	-476.00K	565.00K	-109.00K
Financing Cash Flow	-74.00K	-75.00K	-63.00K	-68.00K	-69.00K	-74.00K

Worldsec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WSL, the sentiment is Positive. The current price of 1.25 is above the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.08, and below the 200-day MA of 1.44, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 98.96 is Negative, neither overbought nor oversold. The STOCH value of 66.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:WSL.

Worldsec 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%
BSFA	56 Neutral	£3.53M	-1.92	-46.41%	―	-64.18%	12.05%
WSL	52 Neutral	£1.06M	-125.00	―	―	―	―
TRUE	48 Neutral	£1.88M	-1.49	-32.31%	―	-100.66%	84.15%
PRIM	48 Neutral	£5.31M	-8.47	-12.33%	―	―	―
GUN	42 Neutral	£1.65M	-2.75	-21.15%	―	―	76.47%
JADE	40 Underperform	£443.01K	-0.43	―	―	-96.59%	93.69%