Freja eID Group AB (FREJA) AI Stock Analysis

• Market Cap: kr324.32M
• Dividend Yield: N/A
• Average Volume (3M): 42.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 23.24%
• EPS Growth: 55.65%
• Country: SE
• Employees: 27
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.19
• Shares Outstanding: 26,475,440
• 10 Day Avg. Volume: 32,400
• 30 Day Avg. Volume: 42,046
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr12.00
• Price Target Upside: -2.04% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: kr12.00 ▼(-2.04% Downside)

Freja eID Group AB's overall stock score is primarily impacted by its financial performance, which shows revenue growth but significant profitability and cash flow challenges. Technical analysis suggests a neutral trend with potential bearish momentum. The valuation is weak due to a negative P/E ratio and no dividend yield.

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 a combination of subscription fees, transaction fees, and service agreements. The company charges businesses and organizations for integrating Freja eID into their systems, allowing them to offer secure digital authentication services to their customers. Additionally, Freja eID Group leverages partnerships with financial institutions, governmental bodies, and other enterprises to expand its user base and drive adoption of its digital identity platform. These partnerships often involve shared revenue models or licensing agreements, contributing significantly to the company's earnings.

Freja eID Group AB Financial Statement Overview

Summary

Freja eID Group AB shows revenue growth but struggles with profitability, indicated by negative margins and financial instability due to high liabilities and negative equity. Cash flow improvements are noted, but free cash flow remains negative.

Income Statement

Freja eID Group AB has shown consistent revenue growth over recent periods, with a notable revenue increase from TTM compared to the previous year. However, the company is struggling with profitability, indicated by negative margins across gross profit, EBIT, and net income. The EBIT and net profit margins are particularly concerning, reflecting operational challenges and cost control issues.

Balance Sheet

The company's balance sheet reveals a negative stockholders' equity, indicating financial distress and high leverage with a significant debt-to-equity ratio. Despite the increase in total assets, the liabilities have surpassed assets, resulting in negative equity. This could pose risks to financial stability and long-term solvency.

Cash Flow

Freja eID Group's cash flow situation shows some positive signs, with an improvement in operating cash flow. However, free cash flow remains negative, impacted by substantial capital expenditures. The operating cash flow to net income ratio is high due to negative net income, indicating reliance on non-operating activities for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.19M	43.91M	36.29M	29.42M	20.64M	21.90M
Gross Profit	14.37M	10.64M	620.00K	36.56M	25.22M	24.91M
EBITDA	-101.00K	-4.35M	-25.52M	-33.74M	-42.68M	-29.53M
Net Income	-17.43M	-23.37M	-31.96M	-38.76M	-52.33M	-45.06M
Balance Sheet
Total Assets	58.42M	60.79M	62.42M	59.85M	93.78M	85.09M
Cash, Cash Equivalents and Short-Term Investments	7.64M	8.43M	5.44M	6.22M	28.30M	23.32M
Total Debt	30.74M	33.83M	19.50M	17.18M	13.59M	5.82M
Total Liabilities	63.71M	63.52M	48.62M	38.50M	34.54M	39.63M
Stockholders Equity	-5.29M	-2.73M	13.80M	21.35M	59.24M	45.46M
Cash Flow
Free Cash Flow	-3.68M	-9.50M	-22.90M	-37.38M	-51.13M	-40.38M
Operating Cash Flow	8.48M	1.95M	-8.38M	-25.41M	-41.67M	-28.14M
Investing Cash Flow	-12.16M	-11.45M	-14.00M	2.15M	-9.70M	19.52M
Financing Cash Flow	2.48M	12.37M	21.57M	938.00K	56.28M	21.72M

Freja eID Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 12.25 is above the 20-day moving average (MA) of 11.91, below the 50-day MA of 12.43, and above the 200-day MA of 11.04, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
ADVE	60 Neutral	843.65M	35.47	20.17%	0.47%	30.59%	2990.29%
FREJA	44 Neutral	kr324.32M	―		―	23.24%	55.65%
CLAV	40 Underperform	1.43B	-33.85	89.17%	―	20.75%	61.27%
CYB1	36 Underperform	3.86M	-2.56	0.00%	―	0.00%	0.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%