Advenica AB (ADVE) AI Stock Analysis

• Market Cap: kr845.41M
• Dividend Yield: 0.48%
• Average Volume (3M): 81.76K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.79
• Revenue Growth: 27.82%
• EPS Growth: 305.33%
• Country: SE
• Employees: 104
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.07
• Shares Outstanding: 43,985,897
• 10 Day Avg. Volume: 58,201
• 30 Day Avg. Volume: 81,762
• PEG Ratio: -0.19
• Price to Book (P/B): 4.39
• Price to Sales (P/S): 2.75
• P/FCF Ratio: 8.76
• 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: 63 Neutral
• Price Target: kr19.50 ▲(7.14% Upside)

Advenica AB's strong financial performance, particularly in revenue growth and profitability, is a key strength. However, technical indicators suggest overbought conditions, and the high P/E ratio indicates potential overvaluation. Cash flow management remains a concern that could impact future growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Advenica's cybersecurity products, supporting long-term business expansion and market presence.

Profitability

Improved profitability reflects effective cost management and operational efficiency, enhancing Advenica's financial stability and investment capacity.

Leverage Management

Prudent leverage management with a low debt-to-equity ratio ensures financial stability and flexibility, allowing Advenica to navigate market changes effectively.

Negative Factors

Cash Flow Challenges

Declining free cash flow may limit Advenica's ability to fund new projects or investments, potentially impacting future growth and operational flexibility.

Operational Margin Volatility

Volatility in operational margins suggests potential challenges in maintaining consistent profitability, which could affect long-term financial performance.

Equity Financing Reliance

Moderate reliance on equity financing could limit Advenica's financial flexibility, affecting its ability to leverage opportunities for growth or acquisitions.

Advenica AB Business Overview & Revenue Model

Company Description

Advenica AB (ADVE) is a Swedish cybersecurity company specializing in high-security communication solutions. The company operates primarily in the cybersecurity sector, providing products and services designed to protect sensitive information and ensure secure data transmission for government agencies, military organizations, and critical infrastructure sectors. Advenica's core offerings include secure communication systems, network solutions, and related software that address the growing need for robust security in an increasingly digital world.

How the Company Makes Money

Advenica generates revenue through the sale of its high-security products and services, which include secure communication systems and network solutions tailored for various sectors such as government, military, and critical infrastructure. The company's revenue model is primarily based on direct product sales, licensing agreements, and ongoing support and maintenance services. Key revenue streams include initial sales of hardware and software solutions, recurring income from maintenance contracts, and consulting services related to cybersecurity implementation. Additionally, Advenica may benefit from strategic partnerships with other technology firms and government contracts that enhance its market reach and credibility, contributing to its overall earnings.

Advenica AB Financial Statement Overview

Summary

Advenica AB demonstrates strong revenue growth and improving profitability, supported by efficient cost management and prudent leverage. However, cash flow challenges and historical volatility in operational margins highlight areas for improvement.

Income Statement

Advenica AB has shown strong revenue growth with a TTM growth rate of 25.7%, indicating robust demand for its products. The gross profit margin is healthy at 63.9% for TTM, reflecting efficient cost management. Net profit margin improved significantly to 11.9% TTM, showcasing enhanced profitability. However, historical volatility in EBIT and EBITDA margins suggests potential operational challenges.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.15 TTM, indicating prudent leverage management. Return on equity has improved to 22.4% TTM, reflecting effective utilization of shareholder funds. However, the equity ratio of 58.3% suggests a moderate reliance on equity financing, which could limit financial flexibility.

Cash Flow

Advenica AB's operating cash flow is strong, but free cash flow has declined by 34.4% TTM, indicating potential cash management issues. The operating cash flow to net income ratio of 0.54 TTM suggests reasonable cash conversion. However, the free cash flow to net income ratio of 0.87 TTM indicates that not all profits are translating into free cash flow, which could impact future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	202.26M	162.17M	148.86M	118.41M	101.26M	84.36M
Gross Profit	128.41M	90.40M	86.35M	98.99M	71.91M	62.55M
EBITDA	32.72M	15.02M	9.94M	8.53M	-12.23M	-15.26M
Net Income	23.43M	8.05M	-4.12M	-1.99M	-17.45M	-19.99M
Balance Sheet
Total Assets	196.76M	225.86M	183.94M	178.96M	126.86M	100.32M
Cash, Cash Equivalents and Short-Term Investments	91.36M	118.86M	81.69M	92.12M	22.14M	19.56M
Total Debt	15.77M	20.42M	28.09M	11.75M	30.32M	15.26M
Total Liabilities	82.12M	124.25M	90.20M	81.17M	87.29M	69.84M
Stockholders Equity	114.64M	101.61M	93.73M	97.79M	39.57M	30.48M
Cash Flow
Free Cash Flow	25.81M	50.94M	-4.58M	22.74M	-38.59M	-5.56M
Operating Cash Flow	31.27M	52.05M	136.00K	25.77M	-32.42M	16.00K
Investing Cash Flow	-9.50M	-8.86M	-4.27M	-3.03M	-6.17M	-5.57M
Financing Cash Flow	-11.14M	-6.63M	-6.29M	45.45M	41.16M	16.68M

Advenica AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ADVE, the sentiment is Positive. The current price of 18.2 is above the 20-day moving average (MA) of 15.26, above the 50-day MA of 15.14, and below the 200-day MA of 20.06, indicating a neutral trend. The MACD of 0.71 indicates Negative momentum. The RSI at 76.52 is Negative, neither overbought nor oversold. The STOCH value of 87.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ADVE.

Advenica AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADVE	63 Neutral	kr845.41M	35.04	22.29%	0.48%	27.82%	305.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4C	48 Neutral	kr507.14M	-94.87	―	―	4.32%	57.79%
BINERO	46 Neutral	kr297.42M	-20.18	-11.28%	―	77.78%	-1.35%
FREJA	46 Neutral	kr428.41M	-25.31	―	―	19.18%	48.44%
CLAV	37 Underperform	kr1.11B	-25.84	―	―	20.43%	61.67%
CYB1	36 Underperform	€3.86M	-2.56	―	―	―	―