Guideline Geo AB (GGEO) AI Stock Analysis

• Market Cap: kr109.99M
• Dividend Yield: N/A
• Average Volume (3M): 6.90K
• Price to Earnings (P/E): 54.8
• Beta (1Y): 0.77
• Revenue Growth: 2.20%
• EPS Growth: 50.91%
• Country: SE
• Employees: 93
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.27
• Shares Outstanding: 11,428,058
• 10 Day Avg. Volume: 10,784
• 30 Day Avg. Volume: 6,899
• PEG Ratio: -0.38
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 8.05
• 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: 68 Neutral
• Price Target: kr11.00 ▲(10.00% Upside)

The score is driven primarily by solid financial strength (low leverage and improved cash generation) and supportive technical momentum (price above major moving averages with positive MACD). These positives are tempered by weak profitability versus prior years and a demanding valuation (high P/E), which raises execution risk if margins do not recover.

Positive Factors

Financial Strength

Guideline Geo AB's low leverage and improved cash flow generation enhance its financial resilience, allowing it to withstand economic cycles and invest in growth opportunities.

Revenue Growth

The increase in revenue suggests strong demand for Guideline Geo AB's products, supporting long-term growth prospects and market position.

Cash Generation

Improved cash flow generation provides Guideline Geo AB with the flexibility to reinvest in its business, reduce debt, or return capital to shareholders, supporting sustainable growth.

Negative Factors

Profitability Concerns

Thin margins and lower earnings compared to previous years indicate potential challenges in cost management or pricing power, which could impact long-term profitability.

Margin Compression

Margin compression suggests increased cost pressures or competitive pricing, which could hinder profitability and require strategic adjustments to improve margins.

Return on Equity Decline

A decline in return on equity indicates that the company is not generating sufficient returns on its capital, which may affect investor confidence and long-term value creation.

Guideline Geo AB Business Overview & Revenue Model

Company Description

Guideline Geo AB (publ), through its subsidiaries, provides sensors, software, services, and support for mapping and visualizing the subsurface for use in detecting and mapping groundwater, environmental and geological risk assessments, infrastructure site investigations, and mineral exploration worldwide. The company offers ABEM Terrameter LS 2, a resistivity/IP meter; ABEM Terraloc Pro, a versatile seismograph; ABEM WalkTEM, a tool for surveys in the geological near-surface; and ABEM Terrameter SAS 1000, a geophysical instrument for multiple applications. It also provides MALÅ Easy Locator Pro WideRange HDR, a ground penetrating radar solution for use in utility detection; MALÅ Easy Locator HDR, which offers various ways of obtaining information about the location and depth of buried objects, such as pipes, cables, and other utilities; MALÅ Easy Locator Pro, a GPR solution that provides a choice for utility mapping; MALÅ ConcreteExplorer, a GPR system designed for the non-destructive investigation and imaging of concrete and other man-made structures; MALÅ GroundExplorer, an integrated GPR solution with a range of antenna options and measuring devices; MALÅ ProfessionalExplorer, a control unit coupled with the MALÅ XV Monitor for detecting subsurface targets and geological layers; and MALÅ Imaging Radar Array, a one-pass 3D system for large scale mapping and subsurface object identification. The company was formerly known as Guideline Technology AB (publ) and changed its name to Guideline Geo AB (publ) in June 2013. Guideline Geo AB (publ) is headquartered in Sundbyberg, Sweden.

How the Company Makes Money

Guideline Geo AB (GGEO) generates revenue through the sale of its geophysical instruments and software solutions. The company offers a portfolio of products that cater to various industries, including environmental studies, infrastructure development, and energy exploration. In addition to direct sales, Guideline Geo may also engage in service contracts and consultancy work, providing expertise and support for geophysical projects. Partnerships with industry stakeholders and research institutions may further contribute to revenue by facilitating collaborative projects and technology advancements. The company's focus on innovation and the development of cutting-edge geophysical tools positions it to meet the demands of clients seeking efficient and reliable subsurface investigation solutions.

Guideline Geo AB Financial Statement Overview

Summary

Guideline Geo AB is navigating through a period of declining revenue and profitability, yet maintains a strong balance sheet with no debt and significant equity. The company's operational efficiency is evident in its gross and EBITDA margins, though net profitability has suffered. Cash flow management requires attention to ensure adequate liquidity and support future growth initiatives. Overall, while financial stability is strong, enhancing profitability and cash flow remains crucial for long-term success.

Income Statement

Guideline Geo AB has faced a challenging period with a notable decline in revenue from 2023 to 2024, decreasing by approximately 8.15%. This revenue contraction has weighed on profitability margins, with the net profit margin dropping to 1.78% compared to 7.35% in the previous year. However, the company maintains a strong gross profit margin of 70.48%, indicating efficiency in managing production costs. Despite the reduced EBIT margin at 2.06%, the company has shown resilience with a positive EBITDA margin of 11.34%, highlighting operational strength.

Balance Sheet

The balance sheet of Guideline Geo AB displays robustness with a debt-free structure, providing financial stability. The equity ratio remains strong at 81.59%, reflecting a solid capital base and low financial leverage. Return on equity has declined to 2.40% from 11.10% in 2023, pointing to reduced profitability on equity investment. Overall, the company's financial position remains sound, supported by substantial equity, although profitability challenges persist.

Cash Flow

Cash flow analysis reveals a drop in free cash flow from 2023 to 2024, indicating challenges in generating surplus cash. The operating cash flow to net income ratio stands at 3.73, suggesting effective cash generation relative to accounting profits. However, the free cash flow to net income ratio is 3.73, highlighting a reliance on operating activities for cash generation. The company needs to focus on improving cash flow efficiency to sustain operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	195.72M	185.00M	201.42M	173.18M	141.93M	101.17M
Gross Profit	69.85M	130.37M	137.17M	112.30M	89.83M	73.06M
EBITDA	21.63M	20.98M	29.89M	22.54M	9.60M	33.32M
Net Income	1.99M	3.30M	14.80M	5.53M	-1.38M	30.21M
Balance Sheet
Total Assets	165.00M	168.43M	172.94M	148.04M	143.48M	136.11M
Cash, Cash Equivalents and Short-Term Investments	19.95M	19.34M	22.02M	18.11M	11.24M	30.21M
Total Debt	2.81M	6.75M	0.00	0.00	0.00	0.00
Total Liabilities	34.32M	31.01M	39.66M	29.41M	31.71M	24.07M
Stockholders Equity	130.68M	137.42M	133.27M	118.62M	111.77M	112.04M
Cash Flow
Free Cash Flow	24.11M	12.33M	13.11M	6.42M	-19.26M	-15.81M
Operating Cash Flow	28.97M	12.33M	17.19M	16.50M	-3.12M	896.00K
Investing Cash Flow	-11.46M	-22.27M	-13.34M	-10.07M	-16.13M	51.61M
Financing Cash Flow	-2.25M	6.75M	0.00	0.00	1.00K	-25.27M

Guideline Geo AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.00
• 50DMA: Positive
• 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:GGEO, the sentiment is Positive. The current price of 10 is above the 20-day moving average (MA) of 9.80, above the 50-day MA of 9.25, and above the 200-day MA of 9.50, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 75.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:GGEO.

Guideline Geo AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GGEO	68 Neutral	kr109.99M	54.76	1.33%	―	2.20%	50.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
IMPC	46 Neutral	kr152.04M	-3.01	―	―	―	―
FLEXQ	45 Neutral	kr144.09M	-4.52	―	―	-4.14%	23.99%
BOMILL	44 Neutral	kr71.86M	-3.44	-115.02%	―	-65.29%	-33.93%
OPTI	41 Neutral	kr156.02M	-2.66	―	―	140.86%	34.21%