Freja eID Group AB (FREJA) AI Stock Analysis

• Market Cap: kr459.83M
• Dividend Yield: N/A
• Average Volume (3M): 48.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• 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 ▲(7.38% 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 (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 is showing signs of revenue growth and improved cash flow management, but it continues to struggle with profitability and generating returns for shareholders. The company's leverage is moderate, but the negative return on equity and net profit margins highlight ongoing financial challenges. Continued focus on improving operational efficiency and profitability is essential for future stability.

Income Statement

Freja eID Group AB has shown some improvement in revenue growth with a TTM increase of 3.48%. However, the company continues to face challenges with negative net profit margins and EBIT margins, indicating ongoing profitability issues. The gross profit margin has improved to 35.46% in the TTM, but the net profit margin remains negative at -30.79%, reflecting significant operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.89 in the TTM, suggesting manageable leverage. However, the return on equity is negative at -457.96%, indicating that the company is not generating positive returns for shareholders. The equity ratio is relatively stable, but the negative ROE highlights profitability concerns.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow growth at 132.06% in the TTM, indicating better cash management. However, the free cash flow to net income ratio is negative, and the operating cash flow to net income ratio is low at 0.21, suggesting that cash generation relative to net income remains a concern.

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: Positive
• Last Price: 14.90
• 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 14.9 is below the 20-day moving average (MA) of 15.18, below the 50-day MA of 15.84, and above the 200-day MA of 13.22, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 44.93 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	63 Neutral	kr858.60M	36.65	22.29%	0.48%	27.82%	305.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FREJA	46 Neutral	kr459.83M	-26.72	―	―	19.18%	48.44%
CLAV	45 Neutral	kr1.46B	-34.75	―	―	20.43%	61.67%
CYB1	40 Underperform	€2.27M	―	―	―	―	―