Loyal Solutions A/S (LOYAL) AI Stock Analysis

• Market Cap: kr33.25M
• Dividend Yield: N/A
• Average Volume (3M): 8.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• 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: 7,818
• 30 Day Avg. Volume: 8,020
• PEG Ratio: -0.14
• Price to Book (P/B): -0.79
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -5.44
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: kr4.50 ▲(38.89% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and high leverage. While technical analysis shows bullish momentum, the negative P/E ratio and lack of dividend yield raise concerns about valuation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Cash Generation Ability

The positive free cash flow growth rate indicates improved cash generation, which can support operations and strategic investments despite overall financial challenges.

Business Model Strength

The subscription-based revenue model provides predictable income streams and potential for scalability, supporting long-term business stability.

Gross Profit Margin

A stable gross profit margin indicates the company can cover its direct costs, which is crucial for maintaining operations and improving profitability over time.

Negative Factors

Revenue Decline

Significant revenue decline poses a challenge to sustaining operations and growth, indicating potential issues in market demand or competitive positioning.

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth and manage downturns.

Profitability Challenges

Negative profit margins reflect operational inefficiencies and high costs, challenging the company's ability to achieve sustainable profitability.

Loyal Solutions A/S Business Overview & Revenue Model

Company Description

Loyal Solutions A/S (LOYAL) is a technology-driven company specializing in loyalty program management and customer engagement solutions. Operating primarily in the digital marketing and customer relationship management sectors, Loyal Solutions provides innovative platforms that enable businesses to create, manage, and optimize loyalty programs. Their core offerings include software solutions for customer rewards, analytics tools for consumer behavior insights, and mobile applications that enhance user experience and engagement.

How the Company Makes Money

Loyal Solutions generates revenue through a subscription-based model, charging businesses for access to their loyalty program management software and analytics tools. Key revenue streams include monthly or annual subscription fees from clients, transaction fees for each customer engagement within loyalty programs, and consulting services for program implementation and optimization. Additionally, the company may benefit from strategic partnerships with marketing agencies and retail businesses, providing them with tailored solutions that drive customer retention and increase sales, thus contributing to its overall earnings.

Loyal Solutions A/S Financial Statement Overview

Summary

Loyal Solutions A/S faces significant financial challenges, with declining revenues, persistent losses, and high leverage. Despite some positive signs in cash flow improvements, the overall financial health is concerning, with risks related to profitability and solvency.

Income Statement

Loyal Solutions A/S has shown a declining revenue trend with a negative revenue growth rate of -105.1% in the latest period, indicating significant challenges in maintaining sales. The company also exhibits negative profit margins, with a net profit margin of -25.78% and an EBIT margin of -17.35%, reflecting ongoing operational inefficiencies and high costs relative to revenue. Despite these challenges, the gross profit margin of 26.66% suggests some ability to cover direct costs, but overall profitability remains a concern.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -0.95. This indicates a high level of financial leverage and potential solvency issues. The return on equity is positive at 35.41%, but this is skewed by the negative equity base. The equity ratio is not directly calculable due to negative equity, highlighting financial instability and risk.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 26.53%, indicating some improvement in cash generation. However, the operating cash flow remains negative, and the operating cash flow to net income ratio is -0.14, suggesting challenges in converting earnings into cash. The free cash flow to net income ratio of 1.42 indicates that the company is generating more cash than its reported losses, which is a positive sign amidst overall cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.34M	39.12M	40.09M	26.89M	18.27M	14.59M
Gross Profit	10.43M	10.43M	12.67M	3.43M	432.46K	2.48M
EBITDA	-6.74M	-6.09M	-5.33M	-14.22M	-14.10M	-5.95M
Net Income	-10.09M	-10.09M	-8.68M	-17.32M	-18.48M	-9.78M
Balance Sheet
Total Assets	18.66M	18.66M	18.97M	22.21M	22.05M	41.19M
Cash, Cash Equivalents and Short-Term Investments	4.03M	4.03M	1.84M	7.29M	6.32M	26.60M
Total Debt	27.07M	27.07M	18.61M	18.19M	8.33M	9.53M
Total Liabilities	47.14M	47.14M	37.31M	31.89M	14.40M	15.73M
Stockholders Equity	-28.49M	-28.49M	-18.35M	-9.68M	7.65M	25.46M
Cash Flow
Free Cash Flow	-2.92M	-4.14M	-4.47M	-8.40M	-17.70M	-9.34M
Operating Cash Flow	-2.92M	-2.92M	-3.17M	-7.44M	-17.24M	-7.42M
Investing Cash Flow	-1.23M	-1.23M	-1.31M	-852.43K	-1.17M	-2.10M
Financing Cash Flow	6.34M	6.34M	-971.85K	9.27M	-1.87M	31.68M

Loyal Solutions A/S Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.24
• 50DMA: Positive
• 100DMA: Positive
• 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:LOYAL, the sentiment is Positive. The current price of 3.24 is below the 20-day moving average (MA) of 3.26, above the 50-day MA of 3.09, and below the 200-day MA of 3.51, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.66 is Neutral, neither overbought nor oversold. The STOCH value of 37.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ZAPLOX	49 Neutral	kr35.30M	-2.46	-205.97%	―	9.85%	50.72%
LOYAL	47 Neutral	kr33.25M	-2.17	―	―	-4.44%	-14.29%
SILEON	41 Neutral	€12.52M	-0.16	-282.46%	―	-86.29%	75.49%
SPOTR	39 Underperform	kr11.83M	-0.50	-177.14%	―	48.57%	-22.35%