Precise Biometrics AB (PREC) AI Stock Analysis

• Market Cap: kr207.38M
• Dividend Yield: N/A
• Average Volume (3M): 136.32K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.62
• Revenue Growth: 6.33%
• EPS Growth: 39.32%
• Country: SE
• Employees: 35
• Sector: Technology
• Sector Strength: 88
• Industry: Security & Protection Services
• EPS (TTM): -0.07
• Shares Outstanding: 77,379,326
• 10 Day Avg. Volume: 100,446
• 30 Day Avg. Volume: 136,322
• 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: kr2.50
• Price Target Upside: -7.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: kr2.50 ▼(-7.41% Downside)

The overall stock score is primarily influenced by financial performance challenges, including profitability and cash flow issues, and weak technical indicators. The negative P/E ratio and lack of dividend yield further weigh down the valuation score, resulting in a low overall score.

Precise Biometrics AB Business Overview & Revenue Model

Company Description

Precise Biometrics AB (PREC) is a Swedish technology company specializing in biometric software and solutions, primarily focusing on fingerprint recognition and identity verification. The company operates in sectors such as mobile security, access control, and digital identity management, offering products that enhance security and user convenience across various devices and applications. Precise Biometrics develops its core product, the Precise BioMatch algorithm, which is used in smartphones, tablets, and smart cards to provide secure and efficient fingerprint authentication.

How the Company Makes Money

Precise Biometrics generates revenue primarily through the licensing of its biometric software and solutions to device manufacturers, service providers, and enterprises. The company has established key revenue streams from software licenses, royalties, and maintenance agreements associated with its fingerprint recognition technology. Additionally, Precise Biometrics engages in strategic partnerships with hardware manufacturers and technology companies to integrate its biometric solutions into their products, further expanding its market reach. The demand for secure biometric authentication in mobile devices and other applications contributes significantly to the company's earnings.

Precise Biometrics AB Financial Statement Overview

Summary

Precise Biometrics AB faces challenges in revenue growth and profitability, with consistent net losses impacting its financial performance. The balance sheet remains strong with a robust equity base, indicating financial stability. Cash flow from operations is improving, but historical fluctuations in free cash flow highlight potential liquidity risks.

Income Statement

The company has experienced a decline in revenue over the TTM (Trailing-Twelve-Months) period compared to the previous year. The gross profit margin remains relatively strong at 72.5%, but the net profit margin is negative due to continued losses, indicating operational challenges. EBIT and EBITDA margins are also negative, reflecting persistent unprofitability and cost management issues.

Balance Sheet

Precise Biometrics AB maintains a healthy equity position with an equity ratio of 71.2%, indicating a strong capital structure. However, the debt-to-equity ratio is low at 0.13, suggesting limited financial leverage. The company's return on equity is negative due to net losses, but overall, the balance sheet shows financial stability with a substantial equity base.

Cash Flow

The operating cash flow to net income ratio is positive, indicating that the company generates sufficient cash from operations relative to its net losses. Free cash flow has improved to positive in the TTM period, reflecting better cash management. However, past free cash flow has been negative, suggesting volatility in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.38M	86.85M	75.07M	91.02M	83.32M	92.35M
Gross Profit	62.38M	63.07M	47.82M	65.04M	63.54M	77.77M
EBITDA	-13.68M	14.40M	-985.00K	-1.00M	-9.30M	-3.32M
Net Income	-12.86M	-8.43M	-26.40M	-22.23M	-13.45M	-12.16M
Balance Sheet
Total Assets	190.31M	203.07M	212.66M	213.22M	241.05M	152.95M
Cash, Cash Equivalents and Short-Term Investments	33.58M	37.70M	47.53M	46.41M	64.10M	76.26M
Total Debt	18.62M	9.59M	4.52M	32.73M	7.59M	6.80M
Total Liabilities	52.24M	51.90M	53.35M	66.92M	113.00M	38.91M
Stockholders Equity	138.07M	151.16M	159.32M	146.30M	128.05M	114.04M
Cash Flow
Free Cash Flow	293.00K	-1.28M	-26.08M	-17.81M	-21.07M	4.00M
Operating Cash Flow	12.44M	10.05M	-10.76M	3.93M	-1.49M	21.79M
Investing Cash Flow	-18.32M	-17.50M	-25.32M	-60.01M	-30.26M	-17.79M
Financing Cash Flow	-2.07M	-2.54M	37.29M	38.31M	19.54M	-1.38M

Precise Biometrics AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PREC, the sentiment is Negative. The current price of 2.7 is below the 20-day moving average (MA) of 2.83, below the 50-day MA of 2.99, and below the 200-day MA of 3.79, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 15.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:PREC.

Precise Biometrics AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEVEL	54 Neutral	124.01M	-11.20	-3.03%	―	-3.99%	33.17%
TSEC	54 Neutral	145.20M	-2.28	-163.32%	―	2.14%	-205444.83%
PREC	43 Neutral	kr207.38M	―	-8.90%	―	6.33%	39.32%
IRIS	41 Neutral	39.26M	-0.09	-34.79%	―	-37.37%	23.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Precise Biometrics AB Corporate Events

Precise Biometrics AB Reports Strong First Half of 2025

Precise Biometrics AB has released its interim report for the first half of 2025, highlighting its continued innovation and leadership in the biometrics and cybersecurity sectors. The company’s focus on expanding its market presence through advanced biometric solutions positions it strongly within the industry, benefiting stakeholders and enhancing its competitive edge.

Precise Biometrics Announces Q2 2025 Interim Report and Q&A Session

Precise Biometrics is set to release its Q2 2025 interim report on August 15, accompanied by a video interview with CEO Joakim Nydemark. A live Q&A session with the CEO and CFO Maria Wester will follow, providing stakeholders an opportunity to engage directly with the company’s leadership. This event underscores Precise Biometrics’ commitment to transparency and stakeholder engagement, potentially impacting investor confidence and market positioning.

Precise Biometrics AB’s 2025 AGM Highlights Strategic Growth Initiatives

The 2025 Annual General Meeting of Precise Biometrics AB resulted in several key decisions, including the adoption of the income statement and balance sheet, and the re-election of board members with Victor Kuzmin joining as a new member. The meeting approved a long-term incentive program involving up to 1,200,000 warrants and authorized the board to issue shares or convertible instruments, potentially increasing the company’s share capital by up to 20%. These decisions reflect Precise Biometrics’ strategic focus on growth and employee engagement, aiming to enhance its market position and operational capabilities.

Precise Biometrics Expands Visitor Management Business with New Features and Global Growth

Precise Biometrics is expanding its visitor management system business by launching new features in its Precise Visit by EastCoast system, enhancing usability, security, and the visitor experience. The company is focusing on cloud adoption, geographical expansion, and a growing customer base, with new customer wins including major international industrial groups and businesses across the Nordics. The company is also seeing increased cloud migration among existing customers, with deployments expanding to countries like Japan, Australia, and Germany. These developments are strengthening Precise’s position as a leading provider of visitor management and security solutions.