InCoax Networks AB (INCOAX) AI Stock Analysis

• Market Cap: kr120.50M
• Dividend Yield: N/A
• Average Volume (3M): 84.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -48.24%
• EPS Growth: -48.99%
• Country: SE
• Employees: 27
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.06
• Shares Outstanding: 131,267,440
• 10 Day Avg. Volume: 69,095
• 30 Day Avg. Volume: 84,855
• PEG Ratio: 1.86
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 2.18
• P/FCF Ratio: -5.98
• 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: 44 Neutral
• Price Target: kr0.54 ▼(-3.04% Downside)

The score is primarily held down by persistent losses and ongoing cash burn (negative operating/free cash flow), despite strong gross margins and a debt-free balance sheet. Technicals add further pressure with the stock below major moving averages and a negative MACD, while valuation is constrained by a negative P/E and no dividend yield.

Positive Factors

Strong Gross Margins

High gross margins indicate efficient cost management and strong pricing power, which can support profitability as revenue scales.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial stability and flexibility, reducing risk and interest burdens, which is beneficial for long-term growth.

Revenue Scale-Up

Significant revenue growth over the years suggests strong market demand and successful product adoption, supporting future expansion.

Negative Factors

Negative Cash Flow

Consistently negative cash flow indicates ongoing cash burn, which could strain liquidity and necessitate additional funding if not addressed.

Persistent Losses

Ongoing losses highlight challenges in achieving profitability, which could impact long-term viability and investor confidence.

Revenue Decline

A significant revenue decline suggests potential market challenges or competitive pressures, which could hinder growth prospects.

InCoax Networks AB Business Overview & Revenue Model

Company Description

InCoax Networks AB (publ) provides networking products and solutions to telecom and broadband, and hospitality sectors. It offers modems; in:xtnd Access for the implementation, control, and monitoring of coaxial link conditions; and in:xtnd Manage, an advanced network management system. The company also provides control units under in:xtnd Control name, and frequency combiners under in:xtnd Combine name. InCoax Networks AB (publ)was incorporated in 2009 and is headquartered in Gävle, Sweden.

How the Company Makes Money

InCoax Networks AB generates revenue through the sale of its broadband access solutions to telecommunications companies and internet service providers. The company's main revenue streams include the sale of hardware products such as access modems and controllers, which enable the delivery of high-speed internet over existing coaxial networks. Additionally, InCoax may derive income from licensing its technology, providing technical support, and offering related services. Partnerships with telecom operators and ISPs are crucial for the company's business model, as these collaborations help expand the reach and adoption of its solutions. The company's focus on using existing infrastructure for broadband delivery can significantly reduce costs for its clients, making its solutions attractive for market adoption.

InCoax Networks AB Financial Statement Overview

Summary

InCoax Networks AB demonstrates strong revenue growth and a solid equity base, but persistent losses and negative cash flows hinder its financial health. The high gross margin shows potential for future profitability if operational efficiencies can be achieved. The company should focus on converting revenue growth into positive net income and cash flows to enhance its financial standing.

Income Statement

InCoax Networks AB has shown impressive revenue growth, with a significant increase from the prior years, indicating strong top-line performance. However, the company remains unprofitable, as evidenced by negative net income and EBIT margins. The gross profit margin is relatively high, which is a positive sign, but the company needs to improve its operational efficiency to translate this into net profitability.

Balance Sheet

The balance sheet reflects a solid equity position with a high equity ratio, suggesting financial stability. The company has no debt, which reduces financial risk, but it also means missed opportunities for leverage. A positive aspect is the significant cash reserves relative to liabilities, enhancing liquidity. However, the return on equity is negative due to net losses, which remains a concern for investors.

Cash Flow

The cash flow statement reveals challenges in cash generation, with negative operating and free cash flows over recent periods. Despite this, there has been a positive financing cash flow, indicating reliance on external funding. The company needs to improve its cash flow from operations to sustain long-term growth and reduce dependency on financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.97M	74.50M	59.62M	25.92M	20.89M	3.79M
Gross Profit	63.49M	67.48M	50.22M	36.67M	25.29M	1.99M
EBITDA	-29.76M	-18.53M	-15.70M	-21.62M	-23.47M	-56.35M
Net Income	-30.49M	-19.15M	-16.91M	-22.82M	-24.50M	-57.82M
Balance Sheet
Total Assets	159.44M	137.67M	114.93M	123.18M	83.17M	42.25M
Cash, Cash Equivalents and Short-Term Investments	21.89M	2.23M	14.99M	36.30M	34.28M	16.83M
Total Debt	0.00	0.00	3.25M	3.25M	3.25M	3.25M
Total Liabilities	31.01M	27.13M	35.30M	26.92M	21.21M	17.63M
Stockholders Equity	128.43M	110.54M	79.63M	96.26M	61.96M	24.62M
Cash Flow
Free Cash Flow	-19.32M	-27.12M	-11.84M	-55.10M	-44.39M	-55.27M
Operating Cash Flow	-19.32M	-27.12M	-10.04M	-30.68M	-28.18M	-46.83M
Investing Cash Flow	-27.13M	-25.71M	-21.00M	-24.42M	-16.20M	-8.44M
Financing Cash Flow	31.91M	40.06M	9.73M	57.12M	61.84M	42.63M

InCoax Networks AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INCOAX, the sentiment is Positive. The current price of 0.56 is below the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.63, and below the 200-day MA of 1.17, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 72.04 is Negative, neither overbought nor oversold. The STOCH value of 91.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:INCOAX.

InCoax Networks AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALCA	71 Outperform	kr612.78M	19.21	―	―	-7.91%	-33.91%
TAGM.B	68 Neutral	kr283.43M	13.38	8.23%	―	14.89%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAYS	55 Neutral	kr319.56M	577.26	―	―	10.55%	―
MAVEN	53 Neutral	kr320.29M	-47.03	-5.81%	―	-9.79%	-144.24%
INCOAX	44 Neutral	kr120.50M	-3.65	-24.59%	―	-48.24%	-48.99%