InCoax Networks AB (INCOAX) AI Stock Analysis

• Market Cap: kr90.05M
• Dividend Yield: N/A
• Average Volume (3M): 84.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• 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: kr0.83 ▲(48.21% Upside)

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

High Gross Margin

A ~91% gross margin indicates very strong product-level economics for the company’s hardware. Over the medium term this provides pricing power and high contribution margins, so if sales stabilize the firm can cover fixed costs faster and more readily convert scale into operating profitability.

Conservative Balance Sheet

A debt-free balance sheet and growing equity base reduce financial distress risk and interest burden, giving the company flexibility to fund near-term operations or product development. This conservatism lengthens runway and supports strategic options while cash generation remains weak.

Multi-year Revenue Scale-up

Meaningful multi-year top-line growth demonstrates market adoption of the Fiber Extension product set and repeatable sales capability. This historical scaling provides a foundation for future operational leverage and margin expansion if the company can stabilize growth and improve retention or recurring services.

Negative Factors

Negative Cash Generation

Persistent negative operating and free cash flow creates an ongoing funding requirement and raises runway risk. Structurally this limits the company's ability to invest in sales, R&D, and deployment, increasing dependence on external financing until core operations become cash-positive.

Sustained Losses & Revenue Slip

Material negative EBIT/net income and a recent ~17% top-line decline show the business hasn't reached durable profitability or consistent growth. Over months this erodes equity, reduces reinvestment capacity, and complicates the pathway to steady margins unless revenue recovery is sustained.

Limited Visibility on Partnerships/Revenue Mix

Lack of disclosed major commercial partnerships and an unclear product vs. services revenue mix reduce clarity on distribution scale and recurring revenue potential. Structurally, this increases execution and concentration risk and makes long-term revenue sustainability harder to assess.

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

Despite strong gross margin (~91% in 2024) and meaningful multi-year revenue scale-up, the core fundamentals remain weak: 2024 EBIT and net income were materially negative (net margin ~-26%), revenue declined ~17% YoY, and operating/free cash flow have been consistently negative (2024 OCF ~-SEK 27.1m). A debt-free balance sheet and higher equity provide some cushion, but persistent losses and cash burn keep the financial score low.

Income Statement

Revenue scaled meaningfully over the period (from ~SEK 2.8m in 2019 to ~SEK 74.5m in 2024), and gross margin is currently very strong (about 91% in 2024). However, profitability remains weak: 2024 EBIT and net income were both materially negative (net margin about -26%), and revenue contracted sharply in 2024 (about -17% year over year). Losses have narrowed versus the extreme 2019–2020 period, but the business has not yet shown a clear path to sustained operating profitability.

Balance Sheet

The balance sheet looks conservatively financed with very low leverage: total debt is zero in 2024 and debt-to-equity has been low historically. Equity has also grown versus earlier years (SEK ~110.5m in 2024 vs ~24.6m in 2020), which provides a buffer. The key weakness is ongoing losses translating into negative returns on equity (about -17% in 2024), which could pressure the capital base over time if profitability and cash generation do not improve.

Cash Flow

Cash generation remains the biggest concern: operating cash flow and free cash flow are negative across all shown years, including 2024 operating cash flow of about -SEK 27.1m. While free cash flow improved substantially versus 2022 (less negative), the company is still consuming cash to operate, and cash flow has not yet demonstrated consistent stabilization. This increases reliance on existing liquidity and/or future funding until operations turn cash-positive.

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: Negative
• Last Price: 0.56
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INCOAX, the sentiment is Negative. The current price of 0.56 is below the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.66, and below the 200-day MA of 1.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 41.72 is Neutral, neither overbought nor oversold. The STOCH value of 16.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	kr585.81M	18.36	―	―	-7.91%	-33.91%
TAGM.B	68 Neutral	kr287.09M	13.55	8.23%	―	14.89%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAYS	55 Neutral	kr342.16M	618.08	―	―	10.55%	―
MAVEN	53 Neutral	kr257.28M	-37.78	-5.81%	―	-9.79%	-144.24%
INCOAX	44 Neutral	kr90.05M	-2.72	-24.59%	―	-48.24%	-48.99%