Loyal Solutions A/S (LOYAL) AI Stock Analysis

• Market Cap: kr25.27M
• Dividend Yield: N/A
• Average Volume (3M): 49.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -4.44%
• EPS Growth: -14.29%
• Country: SE
• Employees: 20
• Sector: Services
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): -0.69
• Shares Outstanding: 9,499,998
• 10 Day Avg. Volume: 31,899
• 30 Day Avg. Volume: 49,898
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr2.50
• Price Target Upside: -2.34% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: kr2.50 ▼(-2.34% Downside)

Loyal Solutions A/S has a low overall stock score due to significant financial challenges, weak technical indicators, and poor valuation metrics. The company's declining revenues, persistent losses, and high leverage are the most significant factors impacting its score. Technical analysis suggests bearish momentum, and the negative P/E ratio highlights ongoing profitability issues.

Loyal Solutions A/S Business Overview & Revenue Model

Company Description

Loyal Solutions A/S (LOYAL) is a Danish company specializing in providing advanced loyalty solutions tailored to enhance customer engagement and retention for businesses across various sectors. The company's core products include a robust suite of loyalty program management tools and platforms that enable clients to create customized, data-driven loyalty programs that drive customer interaction and long-term loyalty. Their services are designed to be flexible and scalable, catering to the unique needs of industries ranging from retail to travel and finance.

How the Company Makes Money

Loyal Solutions A/S generates revenue primarily through the licensing of its loyalty platform to businesses seeking to implement or enhance customer loyalty programs. The company charges subscription fees for the use of its software-as-a-service (SaaS) platform, which may vary based on the scale and complexity of the deployment. Additionally, Loyal Solutions may earn income from professional services such as consulting, customization, and integration support, assisting clients in optimizing their loyalty strategies. Significant partnerships with key industry players can also contribute to revenue by expanding the reach and adoption of the company's platform.

Loyal Solutions A/S Financial Statement Overview

Summary

Loyal Solutions A/S has shown strong revenue growth but remains unprofitable with negative EBIT and net income margins. The balance sheet indicates high leverage risk with negative equity, and cash flow analysis reveals liquidity issues with negative free cash flow and reliance on external financing.

Income Statement

Loyal Solutions A/S has shown significant revenue growth, increasing from over 10 million in 2020 to approximately 40 million in 2024. However, despite the top-line growth, the company remains unprofitable, with negative EBIT and net income margins throughout the period, indicating challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity, suggesting liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, but high liabilities relative to assets indicate leverage risk. The company's financial stability appears weak, posing potential solvency issues.

Cash Flow

Cash flow analysis shows consistent negative free cash flow, though there is a slight improvement in operating cash flow in the latest period. The cash flow to net income ratios indicate cash flow challenges relative to net income losses, highlighting liquidity concerns. The reliance on financing activities in some years underscores the need for external funds to sustain operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.12M	40.09M	26.89M	18.27M	14.59M
Gross Profit	10.43M	12.67M	3.43M	432.46K	2.48M
EBITDA	-6.09M	-5.33M	-14.22M	-14.50M	-5.95M
Net Income	-10.09M	-8.68M	-17.32M	-18.48M	-9.78M
Balance Sheet
Total Assets	18.66M	18.97M	22.21M	22.05M	41.19M
Cash, Cash Equivalents and Short-Term Investments	4.03M	1.84M	7.29M	6.32M	26.60M
Total Debt	27.07M	18.61M	18.19M	8.33M	9.53M
Total Liabilities	47.14M	37.31M	31.89M	14.40M	15.73M
Stockholders Equity	-28.49M	-18.35M	-9.68M	7.65M	25.46M
Cash Flow
Free Cash Flow	-4.14M	-4.47M	-8.40M	-17.70M	-9.34M
Operating Cash Flow	-2.92M	-3.17M	-7.44M	-17.24M	-7.42M
Investing Cash Flow	-1.23M	-1.31M	-852.43K	-1.17M	-2.10M
Financing Cash Flow	6.34M	-971.85K	9.27M	-1.87M	31.68M

Loyal Solutions A/S Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:LOYAL, the sentiment is Negative. The current price of 2.56 is below the 20-day moving average (MA) of 2.70, below the 50-day MA of 2.75, and below the 200-day MA of 5.57, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:LOYAL.

Loyal Solutions A/S Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	56 Neutral	$13.75B	13.24	10.03%	0.92%	7.13%	-12.93%
LOYAL	40 Underperform	kr25.27M	―		―	-4.44%	-14.29%
6V6	―	€1.42M	―	-152.04%	―	―	―
8040	―	€2.89M	―	-257.50%	―	―	―
DH1	―	€4.00M	―	-562.64%	―	―	―
7PN	―	€836.76K	―	-282.46%	―	―	―
FLOWS	―	kr60.73M	57.41		―	―	―