Litium AB (LITI) AI Stock Analysis

• Market Cap: kr280.56M
• Dividend Yield: N/A
• Average Volume (3M): 45.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 7.86%
• EPS Growth: -189.02%
• Country: SE
• Employees: 22
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 19,349,264
• 10 Day Avg. Volume: 21,186
• 30 Day Avg. Volume: 45,075
• PEG Ratio: -1.47
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 1.73
• P/FCF Ratio: -30.92
• 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: 63 Neutral
• Price Target: kr15.50 ▲(5.44% Upside)

The score is primarily supported by a strong, low-risk balance sheet and improving operating performance, alongside positive technical momentum. These positives are offset by weak valuation signals tied to negative earnings and continued negative (and deteriorating) free cash flow.

Positive Factors

Balance Sheet Health

A strong balance sheet with no debt reduces financial risk and provides flexibility for strategic investments and operations.

Revenue Growth

Consistent revenue growth indicates a robust market position and increasing demand for the company's platform, supporting long-term expansion.

EBITDA Margin Improvement

Improved EBITDA margins reflect better operational efficiency and cost management, enhancing profitability potential over time.

Negative Factors

Negative Free Cash Flow

Negative free cash flow suggests ongoing cash absorption by reinvestment or working capital needs, posing a risk to financial stability.

Near Break-even Profitability

Operating near break-even limits the ability to generate shareholder returns and may hinder investment in growth initiatives.

Volatile Gross Margin

Volatile gross margins create uncertainty around cost stability and pricing power, impacting long-term profitability consistency.

Litium AB Business Overview & Revenue Model

Company Description

Litium AB (publ) operates cloud-based e-commerce platform for retailers, e-retailers, brands, wholesalers, and B2B businesses. The company was incorporated in 1998 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Litium AB generates revenue by offering subscription-based access to its e-commerce platform, which businesses use to build and manage their online stores. The company charges clients a recurring fee based on the services and features they utilize. Additionally, Litium may earn income from professional services, including consulting, implementation, and support services, which help clients effectively use and customize the platform to suit their business needs. Partnerships with technology and marketing firms can also play a role in expanding Litium's market reach and enhancing its service offerings, contributing to its revenue streams.

Litium AB Financial Statement Overview

Summary

Litium AB demonstrates a promising trajectory with strong revenue growth and improved profitability in 2024. The balance sheet is robust with low leverage and a high equity ratio, although past fluctuations suggest potential risks. Cash flow management requires attention due to persistent negative Free Cash Flow, despite improvements in operating cash flow.

Income Statement

Litium AB shows a strong revenue growth trend over the years, with a notable increase from 2023 to 2024, indicating consistent expansion. The Gross Profit Margin improved significantly, reflecting efficient cost management. However, the company has historically struggled with profitability, as seen in negative net income and EBIT margins in past years, though 2024 marks a turnaround with positive figures.

Balance Sheet

The company maintains a solid equity base with a high Equity Ratio, indicating a strong financial foundation and low leverage given the absence of debt. The Return on Equity improved to positive in 2024, showing effective use of equity to generate profits. However, the fluctuation in equity over the years highlights potential volatility in financial stability.

Cash Flow

Litium AB's operating cash flow shows improvement, with positive figures in recent years, signaling better operational efficiency. However, the company has consistently reported negative Free Cash Flow due to high capital expenditures, which could impact liquidity. The Free Cash Flow to Net Income ratio improved with the positive net income in 2024.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.02M	72.34M	68.87M	64.89M	57.94M	48.26M
Gross Profit	40.96M	52.12M	46.18M	37.67M	67.92M	56.82M
EBITDA	17.35M	17.55M	-2.67M	-11.66M	-12.04M	-17.40M
Net Income	-665.87K	708.58K	-3.43M	-12.47M	-12.92M	-18.90M
Balance Sheet
Total Assets	100.54M	101.27M	101.31M	107.17M	85.26M	75.93M
Cash, Cash Equivalents and Short-Term Investments	3.54M	7.10M	11.02M	22.88M	11.16M	14.68M
Total Debt	0.00	0.00	0.00	0.00	416.65K	1.92M
Total Liabilities	16.32M	15.89M	16.77M	19.15M	19.15M	21.76M
Stockholders Equity	84.22M	85.38M	84.54M	88.02M	66.11M	54.17M
Cash Flow
Free Cash Flow	-1.35M	-4.04M	-11.81M	-22.23M	-27.29M	-27.28M
Operating Cash Flow	15.42M	15.78M	9.72M	-574.76K	-4.35M	-7.89M
Investing Cash Flow	-21.30M	-19.82M	-21.54M	-21.65M	-22.94M	-19.39M
Financing Cash Flow	357.00K	124.65K	-49.95K	33.95M	23.78M	40.76M

Litium AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:LITI, the sentiment is Positive. The current price of 14.7 is above the 20-day moving average (MA) of 14.55, above the 50-day MA of 13.74, and above the 200-day MA of 12.00, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 57.20 is Neutral, neither overbought nor oversold. The STOCH value of 20.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:LITI.

Litium AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDMIL	66 Neutral	kr204.32M	73.89	―	3.25%	-18.05%	-71.19%
LITI	63 Neutral	kr280.56M	-384.32	-0.84%	―	7.86%	-189.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SFTR	54 Neutral	kr172.87M	148.57	―	―	―	―
CHECK	52 Neutral	kr128.51M	-6.53	-10.28%	―	-18.26%	-109.47%
BUSER	47 Neutral	kr102.10M	-0.82	―	―	―	―