Advenica AB (ADVE) AI Stock Analysis

• Market Cap: €650.99M
• Dividend Yield: 0.61%
• Average Volume (3M): 81.76K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 0.74
• 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): 0.95
• Revenue Forecast (FY): €1.67B

• Rating: 62 Neutral
• Price Target: kr15.50 ▲(7.19% Upside)

Advenica AB's overall stock score reflects strong financial performance with robust revenue growth and profitability. However, technical indicators suggest a bearish trend, and valuation metrics indicate moderate pricing. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

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

Profitability

Improved profitability margins suggest effective cost management and pricing strategies, enhancing Advenica's ability to reinvest in growth and innovation.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, allowing Advenica to invest in strategic opportunities without overextending its finances.

Negative Factors

Cash Flow Concerns

Declining free cash flow growth may limit Advenica's ability to fund new projects or manage unexpected expenses, potentially impacting long-term operational flexibility.

Cash Conversion Efficiency

Moderate cash conversion efficiency suggests room for improvement in turning profits into cash, which is crucial for sustaining operations and funding growth initiatives.

Technical Analysis

Persistent bearish momentum may reflect underlying market skepticism or challenges in investor perception, potentially affecting Advenica's ability to raise capital or attract new investors.

Advenica AB Business Overview & Revenue Model

Company Description

Advenica AB (publ) develops and offers cybersecurity solutions and services worldwide. The company provides cross domain security products, including SecuriCDS Data Diode, which allows unidirectional information exchange between various security domains in real time, as well as guarantees unidirectional separation between networks; ZoneGuard, a gateway for controlled information exchange; SecuriRAM, a self-erasing USB drive designed to transport a limited amount of information; File Security Screener, a cross domain solution with malware security scanning; and Secure Remote Access that enables secure access to systems. It also offers network encryptors, such as SecuriConnect, a communication solution, which provides protection against cyberattacks; three domain separation, a paradigm shift in VPN management that eliminates the threat of unauthorized disclosure of sensitive information by a VPN administrator or a managed security service provider; SecuriVPN ISA, a hardware based quantum-secure network encryptor; and SecuriVPN Arana that provides protection against interception. In addition, the company provides risk and security analysis, penetration testing, customer support, managed services, and customized solutions, as well as Advenica Academy, a solution for securing crucial knowledge. It serves customers in the areas of critical infrastructure, national security, corporate, and public sector. The company was formerly known as Business Security OL AB and changed its name to Advenica AB (publ) in April 2014. Advenica AB (publ) was incorporated in 1993 and is headquartered in Malmö, Sweden.

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: Neutral
• Last Price: 14.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ADVE, the sentiment is Neutral. The current price of 14.46 is below the 20-day moving average (MA) of 14.58, below the 50-day MA of 16.34, and below the 200-day MA of 19.84, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 46.20 is Neutral, neither overbought nor oversold. The STOCH value of 47.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:ADVE.

Advenica AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADVE	62 Neutral	€650.99M	27.79	22.29%	0.61%	27.82%	305.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BINERO	46 Neutral	€283.81M	―	-11.28%	―	77.78%	-1.35%
FREJA	46 Neutral	kr456.98M	―	―	―	19.18%	48.44%
4C	42 Neutral	kr378.92M	18.65	―	―	4.32%	57.79%
CLAV	37 Underperform	kr1.16B	-27.53	―	―	20.43%	61.67%
CYB1	36 Underperform	€3.64M	-2.56	―	―	―	―