Ovzon AB (OVZON) AI Stock Analysis

• Market Cap: kr4.67B
• Dividend Yield: N/A
• Average Volume (3M): 633.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: 20.47%
• EPS Growth: -2.65%
• Country: SE
• Employees: 38
• Sector: Communication Services
• Sector Strength: 78
• Industry: Telecommunications Services
• EPS (TTM): 0.00
• Shares Outstanding: 111,530,520
• 10 Day Avg. Volume: 427,604
• 30 Day Avg. Volume: 633,110
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: kr47.05
• Price Target Upside: 11.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: kr47.00 ▲(10.98%Upside)

Ovzon AB's stock score is primarily influenced by strong technical momentum, despite financial challenges. The company shows potential with improving cash flows but faces profitability issues and a negative P/E ratio. The absence of dividend yield and rich valuation detract from the score.

Ovzon AB Business Overview & Revenue Model

Company Description

Ovzon AB (OVZON) is a Swedish-based company operating in the telecommunications sector, specializing in satellite communication services. The company provides advanced end-to-end mobile broadband solutions via satellite, offering high-speed internet connectivity, video conferencing, and data services to a variety of sectors including defense, government, media, and other commercial markets.

How the Company Makes Money

Ovzon AB generates revenue primarily through the sale of its satellite communication services. The company's revenue model is based on long-term service agreements and contracts with clients who require reliable and high-performance satellite connectivity. Key revenue streams include service fees for broadband internet access, leasing satellite capacity, and providing specialized communication solutions tailored to customer needs. Significant partnerships with satellite operators and technology providers enhance Ovzon's service offerings and expand its market reach. Additionally, the company invests in developing proprietary satellite technology to improve service delivery and maintain a competitive edge in the market.

Ovzon AB Financial Statement Overview

Summary

Ovzon AB shows moderate revenue growth and improving cash flow but struggles with profitability, indicated by negative EBIT and net profit margins. The balance sheet is strong with a solid equity position, though the company faces challenges with debt management and profitability.

Income Statement

Ovzon AB has shown moderate revenue growth with a TTM increase of 7.49% from the previous year. However, the company is struggling with profitability, as indicated by negative EBIT and Net Profit Margins, which have improved slightly but are still significant at -20.61% and -34.26% respectively for TTM. The EBITDA margin turned positive at 21.17% in TTM, suggesting better operational efficiency. Overall, the company needs to focus on improving its profitability to enhance its financial standing.

Balance Sheet

Ovzon AB's balance sheet shows a solid equity position with an equity ratio of 62.16% in TTM, indicating strong shareholder backing. The debt-to-equity ratio is moderately high at 0.43, which could pose a risk if earnings do not improve. ROE remains negative due to ongoing net losses, reflecting the company's struggles to translate equity into profit. The company should aim to manage its debt levels while working towards profitability.

Cash Flow

The company's cash flow position has improved with positive operating cash flow and a notable shift to positive free cash flow in TTM. The free cash flow to net income ratio is -0.20, indicating challenges in converting income to free cash flow, though it has improved from previous periods. The cash flow to net income ratio is -0.98, suggesting operational cash generation is not yet sufficient to cover net losses. Continued focus on cash flow management is crucial.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	334.00M	290.00M	356.99M	191.38M	160.48M
Gross Profit	162.00M	85.00M	124.69M	24.60M	61.46M
EBITDA	7.00M	-37.00M	-11.90M	-74.07M	-87.67M
Net Income	-162.00M	-60.00M	-36.19M	-83.85M	-104.05M
Balance Sheet
Total Assets	2.77B	2.54B	1.92B	1.85B	1.33B
Cash, Cash Equivalents and Short-Term Investments	126.00M	247.00M	275.61M	406.08M	185.03M
Total Debt	775.00M	657.00M	478.05M	323.67M	5.34M
Total Liabilities	1.18B	765.00M	528.85M	403.05M	36.75M
Stockholders Equity	1.59B	1.78B	1.39B	1.45B	1.29B
Cash Flow
Free Cash Flow	-108.00M	-689.00M	-275.26M	-349.74M	-650.89M
Operating Cash Flow	51.00M	-14.00M	-112.16M	-75.93M	-153.71M
Investing Cash Flow	-158.00M	-668.00M	-150.65M	-273.81M	-496.13M
Financing Cash Flow	-17.00M	651.00M	101.51M	558.62M	581.79M

Ovzon AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.35
• 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:OVZON, the sentiment is Neutral. The current price of 42.35 is below the 20-day moving average (MA) of 44.41, above the 50-day MA of 41.45, and above the 200-day MA of 24.93, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 27.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:OVZON.

Ovzon AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TELIA	69 Neutral	kr133.38B	31.98	11.23%	5.75%	-3.89%	1.42%
TEL2.B	66 Neutral	kr105.74B	25.45	20.92%	4.36%	0.80%	10.58%
SINCH	62 Neutral	$27.76B	―	-20.55%	―	-0.30%	-3365.84%
OVZON	58 Neutral	kr4.67B	―	-7.19%	―	20.47%	-2.65%
Sector *	57 Neutral	kr10.49B	11.57	19.43%	3.84%	-10.55%	8.73%
MTG.B	55 Neutral	kr11.76B	―	-0.52%	―	44.55%	-8.92%
VPLAY.B	51 Neutral	kr4.17B	5.19	-14.02%	―	-3.99%	99.12%

Ovzon AB Corporate Events

Ovzon Secures Additional SEK 72 Million Order from Swedish Defence

Ovzon AB has secured an additional order valued at SEK 72 million from the Swedish Defence Materiel Administration (FMV) for its mobile satellite terminals, which will enhance the FMV’s operational capabilities. This order, complementing a previous SEK 1.04 billion contract, underscores Ovzon’s pivotal role in providing mission-critical communications solutions, reinforcing its market position in high-demand environments.

Ovzon Secures Landmark 1.04 Billion SEK Order from Swedish Defence

Ovzon AB has secured its largest order to date, valued at 1.04 billion SEK, from the Swedish Defence Materiel Administration for its SATCOM solution, which includes satellite network services, mobile satellite terminals, and customer support. This significant contract, which begins delivery in June 2025 and runs for 24 months, underscores Ovzon’s capability to meet critical operational needs and is expected to enhance its market position and accelerate company growth.

Ovzon Secures 5.7 MUSD Renewal for SATCOM Services

Ovzon AB has secured a 12-month renewal order worth 5.7 million USD from an existing European customer for its SATCOM-as-a-Service, which includes a high-performing satellite network and dedicated customer support. This renewal, matching the initial order value from March 2024, highlights Ovzon’s strategic role in supporting Europe’s defense posture amid geopolitical uncertainties.