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): N/A
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: 1.00p ▼(-20.00% Downside)

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

Strong Equity Position

A strong equity position with minimal leverage provides financial stability and flexibility, allowing Worldsec to invest in growth opportunities without the burden of high debt.

Diversified Revenue Model

A diversified revenue model reduces dependency on a single income stream, enhancing resilience against market fluctuations and supporting sustainable growth.

Strategic Partnerships

Strategic partnerships enhance market presence and enable cross-selling opportunities, strengthening Worldsec's competitive position and expanding its customer base.

Negative Factors

Declining Revenue

A significant decline in revenue growth indicates challenges in maintaining market share or product demand, which can impact long-term financial health and strategic initiatives.

Negative Cash Flows

Negative cash flows can strain liquidity and limit the company's ability to invest in growth or weather economic downturns, posing a risk to operational sustainability.

Profitability Issues

Negative profitability margins highlight inefficiencies in cost management and revenue generation, potentially affecting the company's ability to reinvest in its business and compete effectively.

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: Negative
• 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 1.04, above the 50-day MA of 1.01, and below the 200-day MA of 1.49, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 98.96 is Negative, neither overbought nor oversold. The STOCH value of 50.98 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	£2.50M	-1.34	-46.41%	―	-64.18%	12.05%
WSL	52 Neutral	£1.06M	―	―	―	―	―
GUN	47 Neutral	£2.07M	-3.55	-21.15%	―	―	76.47%
TRUE	43 Neutral	£1.45M	-1.15	-32.31%	―	-100.66%	84.15%
JADE	38 Underperform	£443.01K	-0.43	―	―	-96.59%	93.69%

Worldsec Corporate Events

Worldsec Limited Reports Narrowed Loss Amid Strategic Investments

Worldsec Limited reported a narrowed net loss of US$97,000 for the first half of 2025, attributed to increased dividend income from its investment in ByteDance. Despite a decrease in cash reserves, the company continues to benefit from its diversified investment portfolio, which includes stable returns from marine vessel leasing and strategic investments in the growing Web3 and digital asset sectors. Animoca Brands, a significant part of Worldsec’s portfolio, is experiencing growth in the Web3 economy, driven by strategic partnerships and initiatives aimed at expanding its market leadership and integrating digital assets into traditional finance.

Worldsec Limited Announces Unanimous Approval of AGM Resolutions

Worldsec Limited, a company that held its Annual General Meeting on September 11, 2025, announced that all resolutions presented were passed successfully. The resolutions included both ordinary and special resolutions, such as the re-election of directors and the authorization for directors to allot shares and disapply pre-emption rights, indicating a unanimous shareholder agreement on the company’s strategic directions.