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SEALSQ Corp (LAES)
:LAES
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SEALSQ Corp
(NASDAQ:LAES)
56Neutral
Positive Factors
Emerging Markets
LAES is expected to enter the post-quantum security market, which justifies a higher valuation multiple as the space is advancing rapidly.
Financial Position
LAES ended 2024 with ~$85M in cash, significantly improving from $18.9M earlier, and eliminated ~$10M in convertible debt, indicating a strong financial position.
Strategic Acquisitions
LAES signed a strategic agreement to acquire a 30% stake in WeCanGroup, which follows a plan to allocate up to $20M for acquisitions.
Negative Factors
Market Conditions
2024 revenue was soft due to market overcorrection following pandemic distortions and before new product availability, with preliminary revenue of $11M, down 63.4% year-over-year.
Revenue Performance
Full-year revenue was down 63.5% year-over-year and below the original $12.5M estimate.
SEALSQ Corp (LAES) vs. S&P 500 (SPY)
Market Cap
$314.78M
Dividend YieldN/A
Average Volume (3M)5.58M
Price to Earnings (P/E)―
Beta (1Y)1.60
Revenue Growth-61.04%
EPS Growth-191.70%
CountryUS
Employees67
SectorTechnology
Sector Strength77
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.28
Shares Outstanding114,508,900
10 Day Avg. Volume8,151,106
30 Day Avg. Volume5,577,361
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)1.29
Price to Sales (P/S)0.00
P/FCF Ratio-21.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside132.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
SEALSQ Corp Business Overview & Revenue Model
Company DescriptionSEALSQ Corp (LAES) operates in the technology sector, specializing in the development and provision of advanced security solutions. The company focuses on creating innovative hardware and software products designed to enhance data protection and cybersecurity measures. Its core offerings include secure microcontrollers, authentication solutions, and IoT security systems, catering to a wide range of industries that require high-security standards.
How the Company Makes MoneySEALSQ Corp generates revenue primarily through the sale of its security products and solutions. This includes licensing fees for its proprietary software, direct sales of secure microcontrollers, and custom security solutions tailored to specific client needs. The company collaborates with various technology partners and industry leaders to integrate its security solutions into broader systems, which enhances its market reach and revenue potential. Additionally, SEALSQ may engage in strategic partnerships and alliances that contribute to its earnings by expanding its product distribution and customer base.
SEALSQ Corp Financial Statement Overview
Summary
SEALSQ Corp faces financial hurdles with declining revenues, persistent losses, and reliance on external funding. While liquidity is bolstered by a substantial cash cushion, operational and profitability challenges remain. The company must address revenue declines and cost inefficiencies to improve its financial health.Income Statement
SEALSQ Corp's income statement reveals significant challenges, with declining revenues year-over-year and a consistent pattern of negative net income. The gross profit margin has deteriorated, indicating higher cost pressures or inefficiencies. The negative EBIT and EBITDA margins highlight operational difficulties. The revenue growth rate is negative, suggesting a decline in sales activity.40
Negative
Balance Sheet
The balance sheet shows a strong cash position with a positive cash balance exceeding total debt, resulting in a negative net debt. However, the debt-to-equity ratio is concerning due to high liabilities compared to equity. ROE is not meaningful due to negative net income and fluctuating equity values. The equity ratio is modest, indicating a balanced asset structure.50
Neutral
Cash Flow
Cash flow analysis reflects negative free cash flow and operating cash flow, suggesting liquidity constraints. The company relies heavily on financing activities to support operations, as seen in the positive financing cash flow. Free cash flow to net income ratio is negative, indicating cash generation issues relative to reported losses.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 10.98M | 30.06M | 23.20M | 17.00M | 14.32M | Gross Profit |
| 3.73M | 14.05M | 9.80M | 7.15M | 5.43M | EBIT |
| -17.19M | -4.14M | 2.58M | -7.70M | -11.26M | EBITDA |
| -15.93M | -1.49M | 3.71M | -3.41M | -6.75M | Net Income Common Stockholders |
| -21.20M | -3.27M | 5.77M | -7.49M | -11.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 84.62M | 6.89M | 4.06M | 2.06M | 1.83M | Total Assets |
| 97.57M | 27.93M | 21.66M | 11.84M | 13.43M | Total Debt |
| 8.88M | 15.38M | 14.12M | 17.39M | 14.31M | Net Debt |
| -75.75M | 8.48M | 10.06M | 15.33M | 12.48M | Total Liabilities |
| 19.70M | 22.90M | 21.45M | 25.41M | 22.81M | Stockholders Equity |
| 77.86M | 5.03M | 212.00K | -13.56M | -9.37M |
| Cash Flow | Free Cash Flow | |||
| -11.78M | -6.06M | -1.85M | -3.63M | -3.08M | Operating Cash Flow |
| -11.21M | -3.04M | -1.55M | -3.59M | -3.02M | Investing Cash Flow |
| -571.00K | -3.02M | -299.00K | -36.00K | 163.00K | Financing Cash Flow |
| 89.48M | 8.92M | 3.75M | 3.69M | 2.81M |
SEALSQ Corp Technical Analysis
Positive
2.58
Price Trends
2.66
Positive
3.52
Negative
2.06
Positive
Market Momentum
>-0.01
Negative
63.53
Neutral
66.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAES, the sentiment is Positive. The current price of 2.58 is above the 20-day moving average (MA) of 2.51, below the 50-day MA of 2.66, and above the 200-day MA of 2.06, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 63.53 is Neutral, neither overbought nor oversold. The STOCH value of 66.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAES.
SEALSQ Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $349.22M | 23.19 | 23.57% | 5.54% | -13.18% | -12.06% | |
67 Neutral | $269.13M | 11.65 | 21.69% | ― | -14.48% | 46.79% | |
61 Neutral | $364.58M | ― | -4.71% | ― | -4.77% | 84.82% | |
60 Neutral | $11.58B | 10.33 | -7.23% | 2.94% | 7.47% | -10.84% | |
59 Neutral | $314.83M | ― | -1369.57% | ― | 14.68% | 20.20% | |
56 Neutral | $314.78M | ― | -52.38% | ― | -61.04% | -191.70% | |
41 Neutral | $213.54M | ― | -375.37% | ― | ― | -1005.33% |
* Technology Sector Average
Performance Comparison
LAES
SEALSQ Corp
3.10
2.02
187.04%
AEHR
Aehr Test Systems
9.04
-2.57
-22.14%
NVEC
NVE
70.31
-2.23
-3.07%
AIP
Arteris
7.51
-1.11
-12.88%
BZAI
Blaize Holdings
2.10
-8.98
-81.05%
XPER
Xperi Inc
7.96
-1.35
-14.50%
SEALSQ Corp Earnings Call Summary
Earnings Call Date:Mar 20, 2025
(Q4-2024)
| % Change Since: -16.77%|
Next Earnings Date:Sep 15, 2025
Earnings Call Sentiment Neutral
While SealSQ faced significant revenue decline and a net loss due to the transition to new technology and market normalization, they are in a strong financial position with substantial cash reserves and no debt. Their strategic investments and acquisitions in post-quantum technology position them well for future growth, with significant revenue increases anticipated in 2025.Q4-2024 Updates
Positive Updates
Strong Financial Position
SealSQ ended the year with a strong balance sheet, having over $90 million in cash reserves and no bank debt or convertible loans, enhancing their ability to fund growth without dilution risks.
Strategic Investments and Acquisitions
SealSQ invested $5 million in 2024 and plans another $7.2 million in 2025 to scale post-quantum security technology. They also raised over $80 million in funding and are planning strategic acquisitions, such as IC’ALPS and investments in startups like Colibri.
Market Leadership Potential in Post-Quantum Security
The post-quantum cybersecurity market is projected to grow significantly, with a CAGR of 44.2%, and SealSQ is well-positioned with high entry barriers and proprietary technology.
Revenue Growth Outlook for 2025
SealSQ anticipates significant revenue growth in 2025 due to new sources of chip revenue, chip personalization services, and consolidation of planned investments.
Negative Updates
Significant Revenue Decline
Revenue fell from $30 million in 2023 to $11 million in 2024, reflecting the transition from traditional semiconductors to quantum-resistant chips and the impact of market normalization.
Net Loss for 2024
SealSQ reported a net loss of $21 million for 2024, primarily due to the migration from traditional semiconductor products, leading to reduced demand.
Customer Inventory Challenges
Excess inventory accumulation by customers resulted in lower 2024 order volumes as clients utilized existing stock before making new purchasing commitments.
Company Guidance
During the SealSQ Full Year 2024 Financial Results Earnings Conference Call, CEO Carlos Moreira and CFO John O'Hara outlined several key metrics and strategic initiatives. SealSQ reported a 2024 revenue of $11 million, down from $30 million in 2023, due to a transition from traditional semiconductors to next-generation quantum-resistant chips. The company raised over $80 million in funding, with cash reserves peaking at over $90 million at the start of 2025. Research and development spending increased by 26% year-over-year, with $5 million invested in 2024 and $7.2 million planned for 2025. SealSQ's pipeline for the next three years stands at $93 million, with anticipated significant revenue growth in 2025, driven by post-quantum security solutions and strategic acquisitions. The post-quantum cybersecurity market is expected to grow from $302.5 million in 2024 to $1.8 billion by 2025, with a CAGR of 44.2%. SealSQ aims to capitalize on this growth by launching new products in Q4 2025, which are expected to have a full impact by 2026.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.