Net Insight AB Class B (NETI.B) AI Stock Analysis

• Market Cap: kr1.60B
• Dividend Yield: N/A
• Average Volume (3M): 664.43K
• Price to Earnings (P/E): 1087.5
• Beta (1Y): 0.73
• Revenue Growth: -12.55%
• EPS Growth: -98.16%
• Country: SE
• Employees: 209
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.03
• Shares Outstanding: 340,404,450
• 10 Day Avg. Volume: 457,083
• 30 Day Avg. Volume: 664,428
• 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: kr3.97
• Price Target Upside: -16.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: kr4.00 ▼(-16.32% Downside)

Net Insight AB Class B's overall stock score is primarily impacted by its mixed financial performance and high valuation concerns. The strong balance sheet is a positive factor, but significant cash flow management issues and a very high P/E ratio suggest caution. Technical analysis shows moderate positive momentum, but it is not enough to offset the financial and valuation challenges.

Net Insight AB Class B Business Overview & Revenue Model

Company Description

Net Insight AB (publ) offers media network solutions worldwide. It offers professional media transport solutions, including remote production, customer provisioned networks, live contribution, internet media transport, ATSC 3.0 transport, cloud ingest, and affiliate interconnect and distribution under the Nimbra name, as well as live IP media function virtualization solutions under the Aperi name. The company also provides support, training, and professional services. It sells its products and services through its sales force and network partner. The company serves broadcasters, enterprises, service providers, content owners, and production companies. Net Insight AB (publ) was founded in 1997 and is headquartered in Solna, Sweden.

How the Company Makes Money

Net Insight makes money primarily through the sale and licensing of its technology solutions and services to media and broadcasting companies. Its revenue model includes the sale of hardware products such as video transport solutions, and the licensing of software solutions that enable efficient content delivery and synchronization. Additionally, Net Insight generates recurring revenue from maintenance contracts and support services, as well as from cloud-based services that offer scalable and flexible solutions for live content production and distribution. Significant partnerships with broadcasters and media companies enhance its market reach and contribute to its earnings by leveraging these relationships to expand its customer base and market penetration.

Net Insight AB Class B Financial Statement Overview

Summary

Net Insight AB Class B exhibits a mixed financial performance. The balance sheet is strong with low leverage, but the income statement shows declining profitability and revenue growth challenges. Cash flow management issues are significant, necessitating strategic improvements.

Income Statement

Net Insight AB Class B has shown a decline in revenue growth with a negative rate of -5.78% in the TTM period, indicating potential challenges in maintaining sales momentum. The gross profit margin has decreased from 61.31% in 2024 to 56.33% in the TTM period, suggesting increased cost pressures. The net profit margin has also significantly dropped from 11.68% in 2024 to 0.32% in the TTM period, reflecting reduced profitability. While the company has maintained positive EBIT and EBITDA margins, these have also decreased, indicating a need for operational efficiency improvements.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.077 in the TTM period, indicating prudent financial leverage. The return on equity has decreased to 0.28% in the TTM period from 10.99% in 2024, reflecting reduced profitability. The equity ratio remains robust, suggesting a stable financial position with a high proportion of equity financing.

Cash Flow

Net Insight AB Class B faces challenges in cash flow management, with a significant decline in free cash flow, resulting in a negative free cash flow growth rate of 142.63% in the TTM period. The operating cash flow to net income ratio has decreased to 0.055, indicating potential issues in converting income into cash. The negative free cash flow to net income ratio highlights cash flow constraints, necessitating improved cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	546.59M	608.01M	559.37M	475.12M	380.69M	398.95M
Gross Profit	307.88M	372.79M	341.79M	297.66M	228.38M	243.71M
EBITDA	107.06M	171.18M	149.96M	132.05M	87.67M	28.28M
Net Income	1.76M	71.05M	60.10M	54.02M	23.80M	-9.20M
Balance Sheet
Total Assets	894.54M	834.78M	838.40M	845.20M	828.62M	862.37M
Cash, Cash Equivalents and Short-Term Investments	97.76M	232.94M	266.40M	307.15M	353.66M	281.98M
Total Debt	47.05M	13.29M	24.29M	32.17M	34.20M	45.73M
Total Liabilities	285.27M	188.41M	216.24M	240.11M	182.09M	169.76M
Stockholders Equity	609.27M	646.37M	622.16M	605.09M	646.53M	692.62M
Cash Flow
Free Cash Flow	-83.22M	24.93M	11.26M	58.09M	42.01M	-61.54M
Operating Cash Flow	13.26M	128.24M	107.32M	148.83M	103.72M	15.87M
Investing Cash Flow	-96.49M	-103.31M	-96.29M	-90.90M	8.63M	224.66M
Financing Cash Flow	-54.86M	-59.13M	-52.72M	-104.98M	-41.30M	-7.91M

Net Insight AB Class B Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.78
• 50DMA: Positive
• 100DMA: Positive
• 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:NETI.B, the sentiment is Neutral. The current price of 4.78 is below the 20-day moving average (MA) of 4.87, above the 50-day MA of 4.43, and below the 200-day MA of 4.91, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 24.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:NETI.B.

Net Insight AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPEN	66 Neutral	4.02B	28.79	8.09%	1.02%	-9.14%	-29.28%
TAGM.B	65 Neutral	221.91M	38.82	2.39%	―	7.65%	17.27%
MAVEN	55 Neutral	410.06M	-56.29	―	―	-14.52%	-124.02%
NETI.B	54 Neutral	kr1.60B	1,087.50	0.15%	―	-12.55%	-98.16%
INCOAX	49 Neutral	143.08M	-3.97	―	―	-33.82%	-140.75%
GAPW.B	46 Neutral	677.43M	-16.33	―	―	89.00%	37.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Net Insight AB Class B Corporate Events

Net Insight AB Reports Decline in Sales Amid Market Challenges, Secures Major US Order

Net Insight AB reported a significant decline in net sales and earnings for the first half of 2025, impacted by a challenging market environment and currency effects. Despite these challenges, the company secured a historic USD 6 million order for its media solutions in the US and expanded its time synchronization customer base. The company has implemented a cost-saving program to counteract market hesitancy and is poised to launch a new 400G IP platform to address evolving market demands. The board has decided to pause the share buyback mandate to maintain financial flexibility amid macroeconomic uncertainties.

Net Insight AB to Release Interim Report and Host Web Conference

Net Insight AB announced the release of its interim report for the first half of 2025, scheduled for July 18, 2025. The report will be accompanied by a live web conference featuring presentations from CEO Crister Fritzson and CFO Cecilia Höjgård Höök. This event provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder engagement.

Net Insight Secures Landmark $6 Million U.S. Sports Venue Deal

Net Insight AB has secured a significant $6 million deal with a U.S. customer for its advanced media solutions, marking one of the largest contracts in the company’s history. This agreement, involving the delivery of Nimbra 1060s for live media transport, strengthens Net Insight’s presence in the U.S. market and underscores its strategic focus on expanding network capacity and remote production capabilities at sports venues. The deal highlights the company’s competitive edge and the trust placed in its technology, reinforcing its position as a leader in the managed solutions segment.

Net Insight Partners with Türk Telekom and Parallel Wireless to Drive 6G Open RAN Innovation

Net Insight, in collaboration with Türk Telekom and Parallel Wireless, is advancing the development of 6G Open RAN solutions by integrating innovative GPS/GNSS-independent synchronization technology into the standardized ORAN network architecture. This partnership aims to shape global 6G standards, enhance network security and reliability, and reduce costs by eliminating dependency on satellite systems, positioning the companies at the forefront of next-generation network innovation.

Net Insight Cancels Repurchased Shares to Optimize Structure

Net Insight AB has announced the cancellation of 6,838,570 repurchased B shares, following a resolution at the Annual General Meeting. This adjustment leaves the total number of shares at 341,404,439, maintaining the company’s share capital at SEK 13,929,720.36. This move is part of the company’s ongoing efforts to optimize its share structure, potentially impacting shareholder value and voting rights distribution.