Image Systems AB (IS) AI Stock Analysis

• Market Cap: kr83.86M
• Dividend Yield: N/A
• Average Volume (3M): 93.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -1.95%
• EPS Growth: -179.81%
• Country: SE
• Employees: 75
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -0.10
• Shares Outstanding: 89,207,820
• 10 Day Avg. Volume: 36,482
• 30 Day Avg. Volume: 93,232
• PEG Ratio: 0.03
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 5.17
• 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): kr217.00M

• Rating: 52 Neutral
• Price Target: kr0.98 ▼(-17.12% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is held back primarily by unstable and recently deteriorating profitability (2025 losses after a profitable 2024) and weak technical trends (below key moving averages with negative MACD). These are partly offset by a conservative balance sheet and generally positive operating/free cash flow, while valuation is inconclusive due to a negative P/E and no dividend yield data.

Positive Factors

Conservative balance sheet

Low debt-to-equity and a sizable equity base reduce balance-sheet risk and provide financial flexibility. This durability allows the company to fund project deliveries, invest in product development or spare parts inventory, and weather cyclical demand without urgent refinancing.

Resilient cash generation

Positive operating and free cash flow in 2025, despite a reported loss, shows underlying cash-generation ability. For a project-and-service business this supports working capital, aftermarket service delivery and spare-part inventory, reducing reliance on external funding over the medium term.

Installed-base and aftermarket model

The business mixes system sales with aftermarket services and software support tied to an installed base. That creates recurring revenue, customer stickiness and higher lifetime value, helping stabilize revenues and margins across project cycles and supporting follow-on system sales.

Negative Factors

Volatile profitability

Sharp swings from modest operating profits to negative gross profit and operating losses indicate unstable margin economics. This volatility undermines long-term margin predictability, complicates reinvestment decisions and raises execution risk for delivering profitable, complex industrial projects.

Inconsistent revenue growth

Irregular top-line performance reduces scale benefits and makes backlog and capacity planning harder. For a systems integrator reliant on project flows and aftermarket conversion, inconsistent revenue curtails predictable spare-part/service growth and weakens long-term operational leverage.

Earnings and ROE instability

Wide swings in ROE reflect persistent earnings instability and reduce shareholder return predictability. That can raise the company’s cost of capital, limit ability to attract external funding for expansion, and constrain strategic investments or sustained dividend policies.

Image Systems AB Business Overview & Revenue Model

Company Description

Image Systems AB provides non-contact measurement products and systems worldwide. The company offers solutions for motion analysis of images from high speed cameras, as well as high resolution film scanning primarily used for surveillance in the defense, automotive, and research and development industries. Its solutions are based on image processing algorithms and contain measuring techniques for log sorting, saw line optimization, and board handling connected to automation systems in sawmill industry. The company offers TEMA, a software suite for advanced motion analysis tests; TrackEye, a system for advanced motion analysis on military test ranges; digital image correlation, an optical non-contact full-field-deformation analysis method to determine strain and deformation of an object under load; and scanner for air defense surveillance and reconnaissance. Image Systems AB was founded in 1983 and is based in Linköping, Sweden.

How the Company Makes Money

Image Systems AB generates revenue through multiple channels including direct sales of software licenses, subscription-based models for its software platforms, and offering professional services such as consulting and technical support. Key revenue streams include recurring revenue from subscriptions for ongoing access to software updates and support, as well as project-based revenue from custom solutions and integrations. The company also engages in strategic partnerships with other technology firms and industry leaders, which not only enhances its product offerings but can also lead to joint ventures and collaborative projects that provide additional income. Furthermore, Image Systems AB may participate in government and private sector contracts, contributing to its earnings through specialized projects in sectors like healthcare and security.

Image Systems AB Financial Statement Overview

Summary

Financials are mixed: the balance sheet is conservative (low debt-to-equity and solid equity base) and cash flow remained positive in 2025 despite a net loss, but profitability has been highly volatile with a sharp deterioration in 2025 (negative gross profit and operating losses) following a profitable 2024.

Income Statement

Profitability has been volatile. After a profitable 2024 (about 4.7% operating margin and 4.7% net margin), results deteriorated sharply in 2025 with negative gross profit and operating losses (roughly -8% to -9% margins) on modest revenue decline (~4%). Revenue growth has also been inconsistent (up strongly in 2022 and 2024, down in 2023 and 2025), suggesting limited earnings stability and execution risk despite periods of healthy gross profitability in prior years.

Balance Sheet

Leverage looks conservative, with debt-to-equity consistently low (~0.13–0.27) and equity remaining sizable versus assets. That provides financial flexibility and reduces balance-sheet risk. The key weakness is shareholder return volatility: return on equity swung from positive mid-single-digits (2022–2024) to negative in 2023 and again materially negative in 2025, reflecting earnings instability rather than structural over-leverage.

Cash Flow

Cash generation is generally a relative strength: operating cash flow and free cash flow were positive in 2025 (despite a net loss) and were strong in 2022 and 2024. However, cash flows have been uneven—2023 saw very weak operating cash flow and negative free cash flow, and 2025 free cash flow declined materially versus 2024. Overall, cash flow resilience is good but not consistently reliable year-to-year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	168.50M	184.90M	160.70M	171.10M	152.20M
Gross Profit	-14.10M	141.10M	122.80M	123.80M	109.70M
EBITDA	9.10M	26.80M	15.50M	21.70M	16.60M
Net Income	-14.60M	8.60M	-6.80M	8.60M	100.00K
Balance Sheet
Total Assets	189.50M	225.90M	183.00M	194.70M	196.30M
Cash, Cash Equivalents and Short-Term Investments	8.90M	12.70M	6.60M	22.50M	7.10M
Total Debt	18.40M	19.50M	14.60M	18.80M	24.90M
Total Liabilities	79.80M	101.30M	67.00M	71.80M	82.30M
Stockholders Equity	109.70M	124.60M	116.00M	122.90M	114.00M
Cash Flow
Free Cash Flow	20.70M	13.80M	-9.70M	21.50M	7.60M
Operating Cash Flow	22.30M	39.20M	1.70M	31.30M	15.70M
Investing Cash Flow	-18.00M	-25.40M	-11.40M	-9.80M	-8.10M
Financing Cash Flow	-8.10M	-7.70M	-6.20M	-6.10M	-4.30M

Image Systems AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:IS, the sentiment is Negative. The current price of 1.18 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 1.09, and below the 200-day MA of 1.57, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 40.39 is Neutral, neither overbought nor oversold. The STOCH value of 34.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:IS.

Image Systems AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SFL	54 Neutral	kr63.39M	-4.00	-5.80%	―	5.70%	-142.93%
IS	52 Neutral	kr83.86M	-5.75	-7.33%	―	-1.95%	-179.81%
MODEL	44 Neutral	kr127.57M	-3.73	-223.35%	―	―	―
INCOAX	44 Neutral	kr65.63M	-1.99	-24.59%	―	-48.24%	-48.99%
SOLT	43 Neutral	kr141.54M	-0.10	-46.09%	―	-24.54%	-102.75%
CHECK	43 Neutral	kr71.73M	-0.55	-10.28%	―	-18.26%	-109.47%

Image Systems AB Corporate Events

Image Systems Preserves Cash and Margin as 2025 Downturn Forces Dividend Pause

Image Systems AB reported a weak fourth quarter and full-year 2025, as cautious investment sentiment and prolonged decision-making in key markets sharply reduced order intake, net sales and earnings, pushing the company to a loss for the year and leading the board to propose no dividend. Despite the downturn, the group maintained a solid 68% gross margin and positive operating cash flow, preserving financial flexibility to selectively invest in product development, AI integration and commercialization, particularly in export-oriented wood processing solutions and subscription-based motion analysis services, which are expected to bolster revenue predictability and position the company for improved profitability when market conditions recover.

The most recent analyst rating on (SE:IS) stock is a Hold with a SEK1.00 price target. To see the full list of analyst forecasts on Image Systems AB stock, see the SE:IS Stock Forecast page.