I-Tech AB (ITECH) AI Stock Analysis

• Market Cap: kr602.29M
• Dividend Yield: 3.31%
• Average Volume (3M): 30.18K
• Price to Earnings (P/E): 18.8
• Beta (1Y): -0.32
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SE
• Employees: 11
• Sector: Technology
• Sector Strength: 88
• Industry: Biotechnology
• EPS (TTM): 0.62
• Shares Outstanding: 11,997,777
• 10 Day Avg. Volume: 43,174
• 30 Day Avg. Volume: 30,179
• PEG Ratio: -1.25
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 3.71
• P/FCF Ratio: 9.72
• 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): 3.67
• Revenue Forecast (FY): kr189.00M

• Rating: 68 Neutral
• Price Target: kr57.00 ▲(5.95% Upside)
• Action: Downgraded Date: 02/08/26
• Date: Action: Downgraded 02/08/26

The score is supported by strong financial performance (high profitability, low leverage, solid cash generation) and reasonable valuation with a ~4% dividend yield. These positives are materially offset by weak technicals, with the stock trading far below key moving averages and negative momentum/oversold indicators.

Positive Factors

Conservative balance sheet

Very low or zero debt across recent years gives I-Tech durable financial flexibility. Minimal leverage reduces insolvency risk, supports R&D and commercialization spending, and makes the company more resilient to cyclical downturns in the marine coatings market over the next 2–6 months.

Strong cash generation

Consistent operating and free cash flow conversion in recent years indicates the company turns profits into cash reliably. That strengthens near-term funding for commercialization, dividend payments, and working capital needs without depending on external financing.

Proprietary product and profitability ramp

Owning a differentiated active ingredient (Selektope®) and having moved from losses to solid profits suggests product-market fit and pricing power in its niche. This structural commercial traction supports sustained margins and revenue opportunities if adoption continues.

Negative Factors

2025 revenue decline and margin pressure

A notable revenue drop and gross-margin contraction in 2025 weaken earnings quality and raise the risk that recent profitability is sensitive to pricing, mix, or temporary contracts. If persistent, this undermines cash generation and the company's ability to invest in growth.

Single-product and channel concentration

Reliance on a single active ingredient sold into coating formulators concentrates commercial risk: slower adoption, changes in specifications, or a loss of major formulators/customers would materially reduce revenue, limiting diversification and durable revenue stability.

Small scale and historical volatility

Very small headcount and past periods of losses and negative cash flow indicate limited operational scale and potential sensitivity to single large contracts or working-capital swings. This magnifies execution risk and makes results more volatile over the medium term.

I-Tech AB Business Overview & Revenue Model

Company Description

I-Tech AB, a bio-technology company, develops and commercializes fouling prevention products in Sweden. The company offers Selektope, a bio-repellent ingredient for marine coatings that provide hard fouling prevention for ships. Selektope prevent barnacles from settling on coated surfaces by temporarily activating the swimming behaviour of barnacle larvae. It serves marine coatings industry. The company was founded in 2000 and is based in Mölndal, Sweden.

How the Company Makes Money

I-Tech makes money primarily by selling its antifouling biocide ingredient/technology (commonly referenced as Selektope®) into the marine coatings value chain. Revenue is generated when marine coating formulators and paint manufacturers purchase the active substance for incorporation into antifouling paint products sold to ship owners and other end users. The company’s earnings therefore depend on (i) volumes of the ingredient sold, (ii) pricing per unit of product supplied, and (iii) adoption of coatings systems that specify its biocide as part of the formulation. Beyond product sales, any additional revenue streams such as licensing/royalties, service income, or specific partnership economics are null (no specific publicly verifiable details provided in this prompt).

I-Tech AB Financial Statement Overview

Summary

Strong overall fundamentals: high recent profitability, very conservative balance sheet with minimal-to-no debt, and robust operating/free cash flow in 2022–2025. Key risk is the 2025 revenue decline and lower gross margin versus 2024, which could pressure earnings quality if it continues.

Income Statement

Profitability is strong in the most recent periods, with 2025 showing healthy operating and net margins and a solid EBITDA margin. The company also delivered a multi-year ramp from losses in 2020–2021 to meaningful profits in 2022–2025. The key drawback is the 2025 revenue decline (down ~10% versus 2024) and a sharp drop in gross margin versus 2024, which suggests earnings quality is currently more sensitive to pricing/cost mix than a year ago.

Balance Sheet

The balance sheet is very conservative: debt is minimal to none across the period (including zero total debt in 2023 and 2025), resulting in extremely low leverage and strong financial flexibility. Equity has grown over time and returns on equity are solid in recent years (positive and elevated in 2022–2025). The main limitation is that profitability and returns were negative in 2020–2021, highlighting that the business has not been uniformly stable across cycles, even if leverage risk is low.

Cash Flow

Cash generation is a clear strength. Operating cash flow and free cash flow are strong in 2022–2025, and free cash flow in 2025 is roughly in line with net income, indicating profits are translating into cash. Cash flow also improved materially from negative levels in 2021. The primary watch-out is volatility: cash flow was weak/negative in 2021, and growth rates fluctuate meaningfully year to year, which can happen in biotech depending on timing and working-capital swings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	168.12M	179.45M	120.86M	83.63M	52.90M
Gross Profit	44.59M	95.22M	63.54M	45.13M	27.48M
EBITDA	50.77M	54.31M	30.34M	18.06M	1.60M
Net Income	33.19M	39.01M	20.20M	10.62M	-2.65M
Balance Sheet
Total Assets	193.73M	173.11M	152.44M	125.41M	115.12M
Cash, Cash Equivalents and Short-Term Investments	148.16M	100.16M	83.26M	52.75M	35.01M
Total Debt	0.00	7.79M	0.00	2.25M	4.29M
Total Liabilities	19.35M	15.73M	16.20M	9.37M	10.19M
Stockholders Equity	174.39M	157.39M	136.24M	116.03M	104.94M
Cash Flow
Free Cash Flow	64.19M	35.04M	32.76M	20.06M	-2.43M
Operating Cash Flow	64.60M	35.17M	35.14M	20.13M	-1.70M
Investing Cash Flow	-409.00K	-408.00K	-2.38M	-822.00K	-928.00K
Financing Cash Flow	-16.20M	-17.86M	-2.25M	-1.56M	-3.35M

I-Tech AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITECH	68 Neutral	kr602.29M	18.80	―	3.31%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONCO	49 Neutral	kr593.41M	-4.37	―	―	131.20%	32.28%