Freja eID Group AB (FREJA) AI Stock Analysis

• Market Cap: kr456.98M
• Dividend Yield: N/A
• Average Volume (3M): 48.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• 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: 28,956
• 30 Day Avg. Volume: 48,411
• 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: 46 Neutral
• Price Target: kr16.00 ▲(3.56% Upside)

Freja eID Group AB's overall stock score is primarily influenced by its financial performance, which shows revenue growth and improved cash flow management but is hampered by ongoing profitability issues. Technical analysis provides a mixed picture with short-term weakness but a longer-term upward trend. Valuation is a concern due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

The company's revenue growth indicates expanding market presence and increasing demand for its digital identity services, which is crucial for long-term business sustainability.

Strategic Partnerships

Partnerships enhance Freja's service reach and value proposition, fostering long-term growth by tapping into new customer bases and leveraging partner networks.

Improved Gross Profit Margins

Improved gross margins suggest better cost management and pricing power, which can lead to enhanced profitability over time.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth opportunities and weather economic downturns.

Negative Cash Flow

Negative cash flow indicates challenges in sustaining operations and funding growth internally, which may necessitate external financing and increase financial risk.

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which could hinder long-term financial health and competitiveness in the market.

Freja eID Group AB Business Overview & Revenue Model

Company Description

Freja eID Group AB (FREJA) is a Swedish company specializing in digital identification and electronic signatures. Operating primarily in the fintech and digital security sectors, Freja provides a range of services aimed at enhancing security and convenience in online transactions, identity verification, and e-governance. Its core products include Freja eID, a mobile application that enables secure authentication and electronic signatures, catering to both individuals and businesses across various industries.

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	49.93M	43.91M	36.29M	29.42M	20.64M	21.90M
Gross Profit	17.09M	10.64M	620.00K	36.56M	25.22M	24.91M
EBITDA	3.41M	-4.35M	-25.52M	-33.74M	-42.68M	-29.53M
Net Income	-14.15M	-23.37M	-31.96M	-38.76M	-52.33M	-45.06M
Balance Sheet
Total Assets	70.66M	60.79M	62.42M	59.85M	93.78M	85.09M
Cash, Cash Equivalents and Short-Term Investments	19.34M	8.43M	5.44M	6.22M	28.30M	23.32M
Total Debt	12.97M	33.83M	19.50M	17.18M	13.59M	5.82M
Total Liabilities	44.11M	63.52M	48.62M	38.50M	34.54M	39.63M
Stockholders Equity	26.55M	-2.73M	13.80M	21.35M	59.24M	45.46M
Cash Flow
Free Cash Flow	-7.45M	-9.50M	-22.90M	-37.38M	-51.13M	-40.38M
Operating Cash Flow	5.14M	1.95M	-8.38M	-25.41M	-41.67M	-28.14M
Investing Cash Flow	-12.44M	-11.45M	-14.00M	2.15M	-9.70M	19.52M
Financing Cash Flow	23.03M	12.37M	21.57M	938.00K	56.28M	21.72M

Freja eID Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.45
• 50DMA: Negative
• 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 15.45 is below the 20-day moving average (MA) of 16.22, below the 50-day MA of 16.10, and above the 200-day MA of 12.50, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 52.54 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
ADVE	62 Neutral	€650.99M	27.79	22.29%	0.62%	27.82%	305.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FREJA	46 Neutral	kr456.98M	―	―	―	19.18%	48.44%
CLAV	37 Underperform	kr1.16B	-27.53	―	―	20.43%	61.67%
CYB1	36 Underperform	€3.64M	-2.56	―	―	―	―