Firefly AB (FIRE) AI Stock Analysis

• Market Cap: kr1.19B
• Dividend Yield: 2.86%
• Average Volume (3M): 1.93K
• Price to Earnings (P/E): 27.4
• Beta (1Y): 0.51
• Revenue Growth: -3.93%
• EPS Growth: -7.54%
• Country: SE
• Employees: 167
• Sector: Technology
• Sector Strength: 88
• Industry: Security & Protection Services
• EPS (TTM): 3.08
• Shares Outstanding: 6,001,400
• 10 Day Avg. Volume: 2,899
• 30 Day Avg. Volume: 1,930
• PEG Ratio: 0.99
• Price to Book (P/B): 6.57
• Price to Sales (P/S): 2.32
• P/FCF Ratio: 29.72
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: kr209.00 ▲(8.29% Upside)

Firefly AB's strong financial performance is the most significant factor driving its stock score, supported by consistent revenue and profit growth, a solid balance sheet, and robust cash flow. Technical analysis indicates strong momentum, though caution is advised due to overbought signals. The valuation is slightly high, but the dividend yield offers some compensation. Overall, the company is well-positioned in its industry, with financial stability and growth potential.

Positive Factors

Strong Financial Performance

Firefly AB's consistent revenue and profit growth, coupled with a robust balance sheet and cash flow, indicate a solid foundation for sustained growth and resilience in the market.

Efficient Cash Generation

The company's ability to generate cash efficiently supports its operations and investments, ensuring financial stability and the capacity to capitalize on growth opportunities.

Low Debt Levels

Firefly AB's low debt levels enhance its financial flexibility and reduce risk, allowing it to navigate economic fluctuations and invest in strategic initiatives.

Negative Factors

Revenue Growth Decline

A decline in revenue growth could indicate challenges in market expansion or product adoption, potentially impacting long-term growth prospects if not addressed.

EPS Growth Decline

A significant decline in EPS growth suggests potential profitability challenges, which may affect investor confidence and the company's ability to reinvest in its business.

Industry Competition

Operating in a highly competitive industry may pressure margins and require continuous innovation, posing challenges to maintaining market position and profitability.

Firefly AB Business Overview & Revenue Model

Company Description

Firefly AB (publ) develops and sells industrial fire prevention and protection systems for the process industries worldwide. The company operates in two business areas, Industrial Applications and Infra Systems. The Industrial Applications business area offers customized fire prevention systems that monitor industrial processes in various areas, such as woodworking, tissue, food, bioenergy, and recycling. The Infra Systems business area provides fire and gas detection systems that monitor infrastructures, such as metros, trains, roads, and cable tunnels under the Sentio brand. It also provides flame and gas detectors under the Omniguard brand to various industries, such as the oil and gas, aerospace, and power industries. In addition, the company offers technical support, maintenance, and training services, as well as spare parts. Further, it offers solutions to the wood panel, wood working, port facility, power generation, bioenergy, tissue, food, tobacco, pulp and paper, recycling, hygiene, other, suppression, detection, and electronic nose industries. The company provides its products and services directly and through distributors. Firefly AB (publ) was founded in 1969 and is based in Stockholm, Sweden.

How the Company Makes Money

Firefly AB generates revenue through multiple streams, primarily by selling its proprietary technology solutions to automotive manufacturers and fleet operators. Key revenue streams include direct sales of software licenses, hardware sales for vehicles, and subscription-based services for data analytics and real-time fleet tracking. Additionally, Firefly collaborates with strategic partners in the automotive and aerospace sectors, which allows for co-development projects and joint ventures that contribute to revenue growth. The company also benefits from government contracts and grants aimed at promoting smart mobility initiatives, further enhancing its earnings potential.

Firefly AB Financial Statement Overview

Summary

Firefly AB showcases strong financial performance across income, balance sheet, and cash flow metrics. The company demonstrates consistent revenue and profit growth, efficient capital structure, and robust cash generation. With minimal debt and strong equity, Firefly AB is well-positioned to sustain its growth trajectory and capitalize on future opportunities in the Security & Protection Services industry.

Income Statement

Firefly AB demonstrated strong revenue growth with a 4% increase from the previous year, continuing its upward trajectory from 2020. The gross profit margin improved to 41.2%, indicating better cost management. The net profit margin rose to 11%, reflecting increased profitability. EBIT and EBITDA margins also improved, showcasing operational efficiency. Overall, the company has shown consistent revenue and profit growth, positioning itself well in the industry.

Balance Sheet

The company maintains a solid balance sheet with an equity ratio of 57.9%, indicating a healthy capital structure. The debt-to-equity ratio is low at 0.01, reflecting minimal leverage risk. Return on equity increased to 31.3%, demonstrating efficient use of shareholders' funds to generate profits. The company's strong equity position and low debt levels highlight financial stability and resilience.

Cash Flow

Firefly AB's free cash flow grew by 6.9%, indicating robust cash generation capabilities. The operating cash flow to net income ratio of 0.78 suggests a strong ability to convert income into cash. The free cash flow to net income ratio of 0.71 further supports the company's efficient cash management. The consistent increase in free cash flow reflects excellent financial health and the ability to fund operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	483.72M	497.06M	477.93M	384.43M	300.23M	264.47M
Gross Profit	194.58M	204.75M	178.67M	134.06M	111.87M	98.65M
EBITDA	60.50M	78.04M	60.96M	46.46M	26.64M	20.17M
Net Income	45.63M	54.83M	45.24M	34.84M	18.82M	14.57M
Balance Sheet
Total Assets	294.65M	303.00M	288.45M	219.37M	192.80M	158.29M
Cash, Cash Equivalents and Short-Term Investments	62.67M	67.87M	52.96M	32.95M	52.66M	40.73M
Total Debt	688.00K	2.06M	1.94M	2.16M	0.00	0.00
Total Liabilities	123.14M	127.67M	140.69M	143.58M	122.43M	94.14M
Stockholders Equity	171.51M	175.33M	147.77M	75.79M	70.37M	64.15M
Cash Flow
Free Cash Flow	53.51M	38.77M	36.25M	-5.56M	23.87M	17.71M
Operating Cash Flow	58.30M	42.54M	41.21M	-1.44M	32.55M	19.05M
Investing Cash Flow	-4.79M	1.53M	-5.01M	-4.33M	-8.89M	-1.62M
Financing Cash Flow	-33.78M	-29.27M	-18.55M	-15.00M	-12.60M	0.00

Firefly AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 193.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:FIRE, the sentiment is Neutral. The current price of 193 is below the 20-day moving average (MA) of 197.63, above the 50-day MA of 188.71, and above the 200-day MA of 182.36, indicating a neutral trend. The MACD of 1.37 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 24.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:FIRE.

Firefly AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIRE	78 Outperform	kr1.19B	27.40	―	2.86%	-3.93%	-7.54%
CARE	71 Outperform	kr642.21M	15.22	―	―	1.30%	-2.54%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LEVEL	54 Neutral	€115.60M	-10.30	-1.58%	―	2.70%	85.94%
TSEC	52 Neutral	kr109.03M	-1.74	―	―	9.39%	-378.80%