Ovzon AB (OVZON) AI Stock Analysis

• Market Cap: kr3.57B
• Dividend Yield: N/A
• Average Volume (3M): 426.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 77.67%
• EPS Growth: 68.35%
• Country: SE
• Employees: 38
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.30
• Shares Outstanding: 111,530,520
• 10 Day Avg. Volume: 494,827
• 30 Day Avg. Volume: 426,856
• PEG Ratio: -0.07
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 5.72
• P/FCF Ratio: -17.68
• 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: 49 Neutral
• Price Target: kr31.00 ▼(-7.46% Downside)

Ovzon AB's overall stock score is primarily impacted by its financial performance and technical analysis. While the company shows revenue growth and improved cost management, its profitability and cash flow issues are significant concerns. The technical indicators suggest a bearish trend, and the valuation metrics highlight unprofitability, further weighing down the score.

Positive Factors

Revenue Growth

The company has achieved a notable revenue growth rate of 27.58% in the TTM period, indicating strong top-line expansion and market demand.

Manageable Leverage

A manageable debt-to-equity ratio suggests financial stability and the ability to fund operations without excessive risk.

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management at the production level, supporting sustainable operations.

Negative Factors

Profitability Challenges

Ongoing operational challenges are reflected in negative profitability metrics, impacting long-term financial health.

Cash Flow Issues

Substantial cash outflows and limited cash conversion efficiency hinder the company's ability to invest in growth.

Negative Return on Equity

Inefficiencies in generating returns for shareholders could deter investment and affect long-term shareholder value.

Ovzon AB Business Overview & Revenue Model

Company Description

Ovzon AB (OVZON) is a Swedish satellite communication company that specializes in providing high-speed mobile broadband services primarily for the defense, maritime, and media sectors. The company leverages its proprietary satellite technology to deliver reliable connectivity solutions in remote and challenging environments, facilitating both voice and data communications. Ovzon's core offerings include satellite terminals and a cloud-based service platform that enhances user experience and operational efficiency.

How the Company Makes Money

Ovzon generates revenue primarily through the sale of satellite communication services and equipment. The company's revenue model is based on subscription fees for access to its satellite network, as well as one-time fees for the sale and leasing of satellite terminals. Key revenue streams include long-term contracts with government and defense agencies, partnerships with commercial enterprises in maritime and broadcasting sectors, and the provision of tailored communication solutions. Additionally, Ovzon may benefit from collaborations with other technology and communication companies that enhance its service offerings and expand its market reach.

Ovzon AB Financial Statement Overview

Summary

Ovzon AB shows strong revenue growth but faces significant profitability and cash flow challenges. The company's leverage is manageable, but negative returns on equity and cash flow inefficiencies highlight areas for improvement.

Income Statement

Ovzon AB's income statement shows a mixed performance. The company has achieved a notable revenue growth rate of 27.58% in the TTM period, indicating strong top-line expansion. However, profitability remains a concern with negative net profit and EBIT margins, reflecting ongoing operational challenges. The gross profit margin is relatively healthy at 51.81%, suggesting efficient cost management at the production level, but the negative net profit margin of -34.26% highlights significant bottom-line pressures.

Balance Sheet

The balance sheet of Ovzon AB presents a moderate financial position. The debt-to-equity ratio of 0.43 indicates a manageable level of leverage, which is a positive sign for financial stability. However, the return on equity is negative at -7.45%, pointing to inefficiencies in generating returns for shareholders. The equity ratio stands at 59.89%, suggesting a solid equity base relative to total assets, which provides a cushion against financial volatility.

Cash Flow

Ovzon AB's cash flow statement reveals challenges in cash generation. The free cash flow growth rate is significantly negative at -212.5%, indicating substantial cash outflows relative to previous periods. The operating cash flow to net income ratio is 0.36, suggesting limited cash conversion efficiency. The free cash flow to net income ratio of 0.2 further underscores the company's struggles in translating earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	565.00M	334.00M	290.00M	356.99M	191.38M	160.48M
Gross Profit	264.00M	162.00M	85.00M	124.69M	24.60M	61.46M
EBITDA	251.00M	7.00M	-37.00M	-12.62M	-74.07M	-102.48M
Net Income	-25.00M	-162.00M	-60.00M	-36.19M	-83.85M	-104.05M
Balance Sheet
Total Assets	2.61B	2.77B	2.54B	1.92B	1.85B	1.33B
Cash, Cash Equivalents and Short-Term Investments	216.00M	126.00M	247.00M	275.61M	406.08M	185.03M
Total Debt	547.00M	775.00M	657.00M	478.05M	323.67M	5.34M
Total Liabilities	920.00M	1.18B	765.00M	528.85M	403.05M	36.75M
Stockholders Equity	1.69B	1.59B	1.78B	1.39B	1.45B	1.29B
Cash Flow
Free Cash Flow	210.00M	-108.00M	-689.00M	-275.26M	-349.74M	-650.89M
Operating Cash Flow	256.00M	51.00M	-14.00M	-112.16M	-75.93M	-153.71M
Investing Cash Flow	-48.00M	-158.00M	-668.00M	-150.65M	-273.81M	-496.13M
Financing Cash Flow	-81.00M	-17.00M	651.00M	101.51M	558.62M	581.79M

Ovzon AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.50
• 50DMA: Negative
• 100DMA: Negative
• 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:OVZON, the sentiment is Neutral. The current price of 33.5 is above the 20-day moving average (MA) of 32.72, below the 50-day MA of 33.61, and below the 200-day MA of 34.55, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 50.87 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
TEL2.B	73 Outperform	kr103.81B	23.91	20.60%	4.17%	0.51%	14.15%
TELIA	66 Neutral	kr145.61B	34.93	10.93%	5.26%	-5.76%	-10.05%
BRE2	66 Neutral	kr2.79B	25.33	―	5.15%	9.72%	4.26%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IVSO	57 Neutral	kr11.96B	56.41	21.88%	0.89%	5.69%	4.82%
SINCH	51 Neutral	kr25.78B	-73.23	-1.23%	―	-1.62%	94.01%
OVZON	49 Neutral	kr3.57B	-149.42	-1.33%	―	77.67%	68.35%

Ovzon AB Corporate Events

Ovzon AB Reports Strong Q3 2025 Growth and Strategic Developments

Ovzon AB reported strong financial growth for the third quarter of 2025, with significant increases in revenue and profitability compared to the previous year. Key developments include a new loan facility with Danske Bank, the appointment of Jeanette Irekvist as Chief Commercial Officer, and an additional order from the Swedish Defence Materiel Administration for mobile satellite terminals. These developments are expected to enhance Ovzon’s operational capabilities and market positioning, potentially benefiting stakeholders by strengthening the company’s financial stability and expanding its service offerings.

Ovzon AB to Release Q3 2025 Financial Results

Ovzon AB announced the release of their third-quarter 2025 financial results, scheduled for October 31, 2025, followed by a webcast conference featuring CEO Per Norén and CFO André Löfgren. This announcement is significant for stakeholders as it offers insights into the company’s financial health and strategic direction, particularly following the commencement of commercial services on their proprietary satellite, Ovzon 3.

Ovzon AB Secures Refinancing with Danske Bank

Ovzon AB has successfully completed a refinancing agreement with Danske Bank, securing a term loan and a revolving credit facility, each worth 300 MSEK. This move is set to reduce interest expenses and support future growth, enhancing Ovzon’s financial stability and operational capacity in the competitive satellite communications market.