Freja eID Group AB (FREJA) AI Stock Analysis

• Market Cap: kr454.12M
• Dividend Yield: N/A
• Average Volume (3M): 68.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 19.18%
• EPS Growth: 48.44%
• Country: SE
• Employees: 27
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.15
• Shares Outstanding: 28,560,974
• 10 Day Avg. Volume: 62,629
• 30 Day Avg. Volume: 68,328
• PEG Ratio: 0.27
• Price to Book (P/B): -80.48
• Price to Sales (P/S): 5.00
• P/FCF Ratio: -23.10
• 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: 54 Neutral
• Price Target: kr19.50 ▲(21.88% Upside)

The overall stock score is primarily influenced by financial performance challenges, including high leverage and negative cash flow. Technical analysis provides some positive momentum, but the valuation remains unattractive due to negative earnings.

Freja eID Group AB Business Overview & Revenue Model

Company Description

Freja eID Group AB (publ), an IT security company, provides security solutions for banking, government, and businesses worldwide. It offers Freja eID, an eco-system for identities; Freja ID to provide secure access to management teams or other key persons; Freja Self-Service Portal, which simplifies the process of user enrolment; Freja Connect, an identity provider that connects internal authentication system to the outside world; Freja Mobile to provide elevated levels of security and user convenience for login and signing; login devices, such as one-button, keyboard, card, USB, and mobile tokens, as well as Freja Mobile, SMS and email, code cards, and Google authenticators; and Pinelope, a software to create personal identification number (PIN) mailers used to distribute passwords or PINs. The company also provides Chiave Key Management Facility, a key management solution to support the common key types used by banks and payment processors; Chiave Registration Authority that generates cryptographic keys and certificates; and Chiave POS, a system for managing personalization of POS terminals. In addition, it offers general purpose hardware security modules (HSM) that enable companies to add hardware security to critical applications, such as public key infrastructures, databases, and Web and application servers; payment HSMs to secure payments and transactions; and transparent and network encryption products. Further, it provides Verisec Platform of Digital Trust, a platform, which provides a range of tools for securing identities and data; and fulfilment and programming, distribution and logistics, ordering and warehousing, printing and packaging, return handling and warranty management, code management, and training services, as well as various courses. The company was formerly known as Verisec AB (publ) and changed its name to Freja eID Group AB (publ) in November 2020. Freja eID Group AB (publ) was founded in 2002 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Freja eID Group AB generates revenue through multiple channels, primarily by charging fees for its digital identity services and electronic signature solutions. The company offers subscription plans for businesses that require enhanced security for their transactions and identity verification processes. Additional revenue is generated from transaction fees associated with the use of their services in online transactions and partnerships with governmental and financial institutions that require secure identification solutions. Strategic partnerships with other tech firms and integration into existing platforms also contribute to revenue growth, as they expand the reach of Freja's services and enhance their value proposition in the market.

Freja eID Group AB Financial Statement Overview

Summary

Freja eID Group AB shows modest revenue growth and improved gross profit margins. However, it faces significant profitability and cash flow challenges, with high leverage and negative free cash flow, indicating financial instability.

Income Statement

Freja eID Group AB shows a modest revenue growth rate of 4.47% TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has improved to 31.11% TTM, but the negative EBITDA margin highlights ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved but remains negative, suggesting high leverage and financial risk. Return on equity is positive at 15.74% TTM, indicating some efficiency in generating returns from equity. However, the equity ratio is low, reflecting potential financial instability.

Cash Flow

Freja eID Group AB's cash flow situation is concerning, with negative free cash flow growth and a negative free cash flow to net income ratio. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.25M	43.91M	36.29M	29.42M	20.64M	21.90M
Gross Profit	17.11M	10.64M	620.00K	36.56M	25.22M	24.91M
EBITDA	3.11M	-4.35M	-25.52M	-33.74M	-42.68M	-29.53M
Net Income	-14.86M	-23.37M	-31.96M	-38.76M	-52.33M	-45.06M
Balance Sheet
Total Assets	75.70M	60.79M	62.42M	59.85M	93.78M	85.09M
Cash, Cash Equivalents and Short-Term Investments	23.71M	8.43M	5.44M	6.22M	28.30M	23.32M
Total Debt	18.72M	33.83M	19.50M	17.18M	13.59M	5.82M
Total Liabilities	54.64M	63.52M	48.62M	38.50M	34.54M	39.63M
Stockholders Equity	21.06M	-2.73M	13.80M	21.35M	59.24M	45.46M
Cash Flow
Free Cash Flow	-3.21M	-9.50M	-22.90M	-37.38M	-51.13M	-40.38M
Operating Cash Flow	9.31M	1.95M	-8.38M	-25.41M	-41.67M	-28.14M
Investing Cash Flow	-12.37M	-11.45M	-14.00M	2.15M	-9.70M	19.52M
Financing Cash Flow	22.60M	12.37M	21.57M	938.00K	56.28M	21.72M

Freja eID Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.00
• 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:FREJA, the sentiment is Neutral. The current price of 16 is below the 20-day moving average (MA) of 17.25, above the 50-day MA of 14.84, and above the 200-day MA of 12.12, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 45.16 is Neutral, neither overbought nor oversold. The STOCH value of 26.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:FREJA.

Freja eID Group 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	60 Neutral	kr619.32M	26.44	22.29%	0.64%	27.82%	305.33%
FREJA	54 Neutral	kr454.12M	―	―	―	19.18%	48.44%
CLAV	38 Underperform	kr1.16B	-27.53	―	―	20.43%	61.67%
CYB1	36 Underperform	€3.64M	-2.56	―	―	―	―