Advenica AB (ADVE) AI Stock Analysis

• Market Cap: kr655.39M
• Dividend Yield: 0.48%
• Average Volume (3M): 81.76K
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.67
• Revenue Growth: 27.82%
• EPS Growth: 305.33%
• Country: SE
• Employees: 104
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.01
• Shares Outstanding: 43,985,897
• 10 Day Avg. Volume: 58,201
• 30 Day Avg. Volume: 81,762
• PEG Ratio: 0.47
• Price to Book (P/B): 7.57
• Price to Sales (P/S): 4.26
• P/FCF Ratio: -312.71
• 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): 0.08
• Revenue Forecast (FY): kr201.26M

• Rating: 55 Neutral
• Price Target: kr15.00 ▼(-17.58% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improved fundamentals (strong growth, return to profitability, and a healthier balance sheet), but is held back by the major cash-flow deterioration/volatility in 2025. Technicals are weak with the stock trading below key moving averages and subdued momentum, while valuation remains high relative to earnings with only a small dividend yield.

Positive Factors

Revenue growth & profitability

Sustained, accelerating top-line growth paired with a return to positive EBIT and net income indicates improving product-market fit and scalable delivery in security niches. Over 2–6 months this supports reinvestment in R&D, stronger contract wins, and a more durable earnings base if execution continues.

Conservative leverage & expanded equity

A lower debt-to-equity ratio and growing equity base materially improve financial resilience, giving management capacity to fund certifications, bid on public contracts, and weather procurement cycles without immediate refinancing. This structural balance-sheet strength supports strategic investments over months.

High-assurance cybersecurity market focus

Serving government, defense and critical infrastructure creates structural demand driven by regulation and high switching costs; long procurement cycles and certification requirements favor suppliers with proven solutions, producing recurring services and durable contract opportunities over the medium term.

Negative Factors

Sharp cash-flow deterioration

Volatile and weakening cash generation undermines earnings quality and increases funding risk; if working-capital or capex needs persist, the company may need external financing or cut investment. This structural cash volatility can constrain growth initiatives and raises risk over the next several quarters.

Margin sustainability uncertainty

A recent swing to profitability without clear margin detail leaves sustainability unclear; past negative volatility implies profits could reverse with contract timing, implementation costs, or pricing pressure. Long-term margin stability is crucial for durable free cash flow and investment capacity.

Total assets contraction

A decline in total assets may signal shrinking operational scale, reduced booked receivables, or aggressive working-capital reduction; any of these can signal volatility in revenue recognition or limit capacity to scale deployments. Persistent asset contraction could impair growth over the medium term.

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

Strong and accelerating revenue growth and a clear return to profitability support the score, and leverage appears conservative with expanding equity. The main offset is sharply weaker and volatile cash generation in 2025 (near-breakeven operating cash flow and negative free cash flow), raising earnings-quality and funding-risk concerns.

Income Statement

Revenue growth is strong and accelerating (about 9% in 2024 to ~51% in 2025), and profitability has clearly improved versus 2020–2023 (moving from losses to positive EBIT and net income in 2024–2025). However, margins were previously volatile and negative for several years, and 2025 margin detail is not provided, so the sustainability of the recent step-up is less proven.

Balance Sheet

Leverage looks conservative with debt modest relative to equity (debt-to-equity ~0.20 in 2024, down from ~0.77 in 2021), and equity has expanded materially from 2020–2025, supporting improved financial resilience. A watch item is that total assets fell from 2024 to 2025, which could reflect working-capital swings or balance sheet contraction, but the capital structure still appears solid.

Cash Flow

Cash generation is the main weak spot: operating cash flow and free cash flow swung sharply from very strong in 2024 (both strongly positive) to low/negative in 2025 (operating cash flow near breakeven and free cash flow negative, with a steep decline versus the prior year). This level of volatility raises risk around earnings quality and funding needs if working capital or investment spend remains elevated.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	203.29M	162.17M	148.86M	118.41M	101.26M
Gross Profit	108.92M	90.40M	86.35M	98.99M	71.91M
EBITDA	26.57M	15.02M	9.94M	8.53M	-12.23M
Net Income	16.57M	8.05M	-4.12M	-1.99M	-17.45M
Balance Sheet
Total Assets	199.78M	225.86M	183.94M	178.96M	126.86M
Cash, Cash Equivalents and Short-Term Investments	96.53M	118.86M	81.69M	92.12M	22.14M
Total Debt	21.24M	20.42M	28.09M	11.75M	30.32M
Total Liabilities	85.34M	124.25M	90.20M	81.17M	87.29M
Stockholders Equity	114.44M	101.61M	93.73M	97.79M	39.57M
Cash Flow
Free Cash Flow	-2.77M	50.94M	-4.58M	22.74M	-38.59M
Operating Cash Flow	1.72M	52.05M	136.00K	25.77M	-32.42M
Investing Cash Flow	-10.52M	-8.86M	-4.27M	-3.03M	-6.17M
Financing Cash Flow	-12.28M	-6.63M	-6.29M	45.45M	41.16M

Advenica AB Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ADVE, the sentiment is Negative. The current price of 18.2 is above the 20-day moving average (MA) of 17.15, below the 50-day MA of 18.43, and below the 200-day MA of 19.80, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 27.70 is Positive, neither overbought nor oversold. The STOCH value of 14.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ADVE.

Advenica AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADVE	55 Neutral	kr655.39M	40.46	22.29%	0.48%	27.82%	305.33%
CLAV	50 Neutral	kr1.81B	497.96	―	―	20.43%	61.67%
FREJA	50 Neutral	kr458.40M	-25.70	―	―	19.18%	48.44%
4C	42 Neutral	kr325.34M	-19.34	―	―	4.32%	57.79%
CYB1	40 Underperform	€1.94M	―	―	―	―	―