Irisity AB (IRIS) AI Stock Analysis

• Market Cap: kr50.52M
• Dividend Yield: N/A
• Average Volume (3M): 554.40K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• Revenue Growth: -41.32%
• EPS Growth: 34.95%
• Country: SE
• Employees: 76
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.18
• Shares Outstanding: 384,201,930
• 10 Day Avg. Volume: 311,167
• 30 Day Avg. Volume: 554,400
• PEG Ratio: 0.08
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -1.36
• 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: 45 Neutral
• Price Target: kr0.17 ▲(33.85% Upside)

The overall stock score reflects significant financial challenges, with persistent net losses and negative cash flows being the most critical factors. Technical analysis shows some positive momentum, but the valuation remains unattractive due to the lack of profitability. The absence of earnings call data and corporate events further limits the assessment.

Positive Factors

Recurring Revenue Model

The subscription-based revenue model provides a stable and predictable income stream, enhancing financial stability and supporting long-term growth.

Technological Advancements

Continuous innovation in AI and video analytics positions Irisity as a leader in smart surveillance, driving demand and potential market expansion.

Low Leverage

Low leverage provides financial flexibility, reducing risk and enabling the company to invest in growth opportunities without excessive debt burden.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in market demand or competitive positioning, which could impact long-term financial health and growth prospects.

Negative Cash Flow

Negative cash flow reflects liquidity challenges, limiting the company's ability to invest in growth and potentially leading to financial instability.

Operational Inefficiencies

Operational inefficiencies hinder profitability, suggesting the need for strategic improvements to enhance margins and overall financial performance.

Irisity AB Business Overview & Revenue Model

Company Description

Irisity AB (IRIS) is a Swedish technology company specializing in artificial intelligence and computer vision solutions, primarily for the security and surveillance sectors. The company develops advanced video analytics software that enhances traditional security systems by providing real-time insights and improved threat detection capabilities. Irisity's core offerings include its AI-driven video surveillance solutions that cater to various industries, including public safety, transportation, retail, and critical infrastructure.

How the Company Makes Money

Irisity AB generates revenue through a subscription-based model for its software services, which allows customers to access and utilize its AI video analytics solutions. This recurring revenue stream is a key component of its business model. Additionally, the company earns money from the sale of licenses for its software products and from hardware sales, such as cameras and other security equipment that are integrated with its software. Significant partnerships with security service providers and integrators enhance its market reach, while ongoing technological advancements and a growing demand for smart surveillance solutions contribute to its revenue growth.

Irisity AB Financial Statement Overview

Summary

Irisity AB is facing significant financial challenges, with declining revenues, persistent net losses, and negative cash flows. The low leverage provides some flexibility, but the company needs to address its operational inefficiencies to improve profitability and cash generation, crucial for long-term sustainability.

Income Statement

Irisity AB has experienced declining revenue from 2023 to 2024 and consistent negative net income over the years. The EBIT and EBITDA margins are both negative, indicating operating inefficiencies. Despite some gross profit, the company is struggling to convert it into positive net income, reflecting operational challenges.

Balance Sheet

The company's debt-to-equity ratio remains low, suggesting conservative leverage. However, the equity ratio has declined, and the return on equity is negative due to continuing net losses. This indicates financial instability and a need for improved profitability to enhance shareholder value.

Cash Flow

Irisity AB's cash flow statement shows negative operating cash flow and free cash flow, reflecting liquidity challenges. The company has been unable to generate positive free cash flow over recent periods, highlighting operational cash generation issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.15M	103.94M	117.60M	87.68M	77.29M	36.77M
Gross Profit	76.07M	106.59M	129.13M	94.79M	70.97M	32.00M
EBITDA	-101.50M	-92.48M	-89.84M	-94.64M	-10.94M	-11.49M
Net Income	-221.60M	-216.07M	-132.53M	-136.93M	-23.93M	-19.61M
Balance Sheet
Total Assets	528.78M	738.23M	760.19M	863.39M	898.89M	137.87M
Cash, Cash Equivalents and Short-Term Investments	1.59M	7.55M	13.64M	17.58M	71.34M	65.15M
Total Debt	46.95M	12.65M	23.28M	15.00M	1.17M	2.34M
Total Liabilities	131.05M	117.20M	128.54M	124.31M	136.85M	20.11M
Stockholders Equity	397.73M	621.02M	631.65M	739.07M	762.04M	117.76M
Cash Flow
Free Cash Flow	-29.77M	-59.87M	-69.65M	-68.28M	-43.25M	-21.18M
Operating Cash Flow	-55.61M	-59.87M	-42.71M	-41.96M	-27.44M	-11.14M
Investing Cash Flow	-23.14M	-33.96M	-26.94M	-26.33M	-90.16M	-10.04M
Financing Cash Flow	77.46M	87.75M	63.16M	13.77M	123.79M	46.53M

Irisity AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 50DMA: Negative
• 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:IRIS, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.14, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.20 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:IRIS.

Irisity AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SECU.B	69 Neutral	kr81.81B	16.22	13.13%	3.15%	-0.74%	6.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CARE	63 Neutral	kr595.99M	13.89	―	―	1.30%	-2.54%
LEVEL	54 Neutral	kr123.59M	-49.49	-1.58%	―	2.70%	85.94%
TSEC	52 Neutral	kr126.33M	-2.31	―	―	9.39%	-378.80%
IRIS	45 Neutral	kr50.52M	-0.08	-44.40%	―	-41.32%	34.95%
PREC	42 Neutral	kr176.12M	-11.79	-10.30%	―	-3.27%	-23.22%