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Ovzon AB (SE:OVZON)
:OVZON

Ovzon AB (OVZON) AI Stock Analysis

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Ovzon AB

(Frankfurt:OVZON)

Rating:58Neutral
Price Target:
kr47.00
▲(5.62%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 (OVZON) vs. iShares MSCI Sweden ETF (EWD)

Ovzon AB Business Overview & Revenue Model

Company DescriptionOvzon AB (OVZON) is a Swedish company specializing in mobile satellite communication services. The company provides high-capacity satellite communication solutions that combine satellite bandwidth with innovative mobile terminals. Ovzon's services are designed to meet the needs of clients requiring reliable and high-speed internet connectivity in remote and mobile environments, serving sectors such as defense, emergency services, media, and maritime industries.
How the Company Makes MoneyOvzon AB generates revenue primarily through the provision of satellite communication services. The company offers a unique service that integrates satellite bandwidth with portable terminals, enabling clients to access high-speed internet in challenging locations. The revenue model is largely based on service contracts with clients who require continuous and reliable communication capabilities. Key revenue streams include leasing satellite terminals, selling communication packages, and providing ongoing support and maintenance services. Ovzon also forms strategic partnerships with satellite operators and ground network providers to enhance service delivery and expand its market reach, contributing to its overall earnings.

Ovzon AB Financial Statement Overview

Summary
Ovzon AB is showing positive revenue growth and improving cash flow, indicating potential for future growth. However, the company faces significant challenges with profitability, evidenced by negative margins and net income. Managing debt levels and achieving operational efficiencies are crucial for future stability.
Income Statement
45
Neutral
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
55
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue359.00M334.00M290.00M356.99M191.38M160.48M
Gross Profit186.00M162.00M85.00M124.69M24.60M61.46M
EBITDA76.00M7.00M-37.00M-11.90M-74.07M-87.67M
Net Income-123.00M-162.00M-60.00M-36.19M-83.85M-104.05M
Balance Sheet
Total Assets2.60B2.77B2.54B1.92B1.85B1.33B
Cash, Cash Equivalents and Short-Term Investments167.00M126.00M247.00M275.61M406.08M185.03M
Total Debt699.00M775.00M657.00M478.05M323.67M5.34M
Total Liabilities985.00M1.18B765.00M528.85M403.05M36.75M
Stockholders Equity1.62B1.59B1.78B1.39B1.45B1.29B
Cash Flow
Free Cash Flow24.00M-108.00M-689.00M-275.26M-349.74M-650.89M
Operating Cash Flow120.00M51.00M-14.00M-112.16M-75.93M-153.71M
Investing Cash Flow-96.00M-158.00M-668.00M-150.65M-273.81M-496.13M
Financing Cash Flow-31.00M-17.00M651.00M101.51M558.62M581.79M

Ovzon AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price44.50
Price Trends
50DMA
34.21
Positive
100DMA
28.83
Positive
200DMA
21.95
Positive
Market Momentum
MACD
3.16
Positive
RSI
62.34
Neutral
STOCH
35.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:OVZON, the sentiment is Positive. The current price of 44.5 is above the 20-day moving average (MA) of 43.25, above the 50-day MA of 34.21, and above the 200-day MA of 21.95, indicating a bullish trend. The MACD of 3.16 indicates Positive momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 35.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:OVZON.

Ovzon AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
kr98.24B25.1516.69%4.54%1.16%5.52%
70
Outperform
kr98.24B25.1516.69%4.54%1.16%5.52%
65
Neutral
kr13.89B-0.89%19.35%-213.30%
65
Neutral
kr13.89B-0.89%19.35%-213.30%
63
Neutral
$132.46B19.449.32%5.79%-1.98%2245.91%
63
Neutral
$132.46B19.449.32%5.79%-1.98%2245.91%
60
Neutral
$24.58B-20.56%1.25%-20115.92%
60
Neutral
$24.58B-20.56%1.25%-20115.92%
58
Neutral
kr14.39B3.9518.70%3.84%-7.94%154.39%
58
Neutral
kr4.78B-7.19%20.47%-2.65%
47
Neutral
$3.43B5.19-15.68%-3.61%99.63%
47
Neutral
$3.43B5.19-15.68%-3.61%99.63%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:OVZON
Ovzon AB
44.50
21.55
93.90%
SE:MTG.B
Modern Times Group AB
119.10
32.30
37.21%
SE:MTG.B
Modern Times Group AB
119.10
32.30
37.21%
SE:TEL2.B
Tele2 AB
141.65
44.91
46.43%
SE:TEL2.B
Tele2 AB
141.65
44.91
46.43%
SE:TELIA
Telia Company AB
34.45
8.01
30.30%
SE:TELIA
Telia Company AB
34.45
8.01
30.30%
SE:SINCH
Sinch AB
29.04
5.34
22.53%
SE:SINCH
Sinch AB
29.04
5.34
22.53%
SE:VPLAY.B
Viaplay
0.73
-0.08
-9.88%

Ovzon AB Corporate Events

Ovzon Secures Landmark 1.04 Billion SEK Order from Swedish Defence
May 30, 2025

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
May 13, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 20, 2025