Rolling Optics (RO) AI Stock Analysis

• Market Cap: kr57.33M
• Dividend Yield: N/A
• Average Volume (3M): 14.62K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.38
• Revenue Growth: -0.73%
• EPS Growth: -136.62%
• Country: SE
• Employees: 18
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 266,636,930
• 10 Day Avg. Volume: 8,681
• 30 Day Avg. Volume: 14,620
• PEG Ratio: 1.29
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 4.14
• P/FCF Ratio: -14.79
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: kr0.26 ▲(4.00% Upside)

The score is driven down primarily by weak financial performance (sharp TTM revenue decline, deep losses, and significant cash burn). Technicals further weigh on the score due to a clear downtrend and bearish momentum indicators. Valuation is not a meaningful positive factor because the negative P/E is driven by losses and no dividend support is available.

Positive Factors

Debt-free balance sheet & sizable equity

A zero-debt capital structure and ~71.9M equity provide durable financial flexibility, reducing near-term default risk while supporting financing options. This buffer lengthens runway during cash burn and enables strategic choices (partnerships, product investment) over the next 2–6 months.

High gross margins (~69%)

Sustained ~69% gross margins indicate strong unit economics and pricing power versus input costs. This structural margin cushion can support recovery: if operating expenses are right-sized or revenue stabilizes, margins make a path to profitability more achievable over a multi-month horizon.

Improving free cash flow trend

Although FCF remains negative, year-over-year improvement signals operational adjustments or revenue mix changes beginning to reduce cash burn. A durable trend toward better FCF lowers refinancing risk and increases the probability management can extend runway or fund prioritized projects in the coming months.

Negative Factors

Sharp revenue decline (TTM -53%)

A 53% TTM revenue drop is a structural red flag: it erodes scale economics, weakens market position, and makes fixed-cost absorption harder. Sustained top-line contraction impedes profitable recovery and increases the likelihood that margins and cash flows remain under pressure for several quarters.

Material negative operating and free cash flow

Persistent cash burn (-19.4M OCF, -28.6M FCF TTM) forces reliance on external financing or equity dilution, constraining investment and strategic flexibility. Over a 2–6 month horizon, continued negative cash flow elevates refinancing risk and may necessitate cost cuts that impair growth potential.

Deep losses and negative returns (net margin ~-46%, ROE ~-25%)

Wide negative margins and a -25% ROE show the company is not converting capital into profits, signaling structural profitability issues. Without sustained revenue recovery or major cost restructuring, continued value destruction and limited ability to reinvest earnings are likely over the medium term.

Rolling Optics Business Overview & Revenue Model

Company Description

Rolling Optics Holding AB (publ) develops, designs, produces, and sells products in visual authentication based on in-house developed and patented technology in micro-optics. The company was founded in 2005 and is based in Solna, Sweden.

How the Company Makes Money

Rolling Optics generates revenue through the sale of its proprietary micro-optical products and solutions. The company primarily earns money by providing high-security anti-counterfeiting labels to industries like pharmaceuticals, electronics, and luxury goods, where brand protection is critical. Additionally, RO offers customized optical design solutions to brands seeking to differentiate their products through unique visual effects. Partnerships with major companies in these sectors, as well as ongoing innovation in optical technology, significantly contribute to RO's earnings by expanding its market reach and enhancing its product offerings.

Rolling Optics Financial Statement Overview

Summary

Overall financial profile is pressured: TTM revenue declined sharply (-53%) and profitability remains weak (TTM net margin ~-46%) with negative operating profit. Cash flow is also a major concern with materially negative operating cash flow (-19.4M) and free cash flow (-28.6M). The balance sheet helps offset some risk (zero debt and sizable equity base), but negative returns (TTM ROE ~-25%) and ongoing losses dominate.

Income Statement

TTM (Trailing-Twelve-Months) revenue fell sharply (-53%) versus the prior annual period, reversing the stronger growth seen in 2023–2024. Profitability remains the key issue: despite consistently high gross margins (TTM ~69%), the company is still deeply loss-making (TTM net margin ~-46% and negative operating profit), indicating operating costs are not scaling with revenue. Overall, the income statement shows solid product economics but weak cost structure and deteriorating near-term momentum.

Balance Sheet

The balance sheet is a relative strength, with zero debt in the latest periods (TTM and 2024 annual) and a sizable equity base (~71.9M), which lowers financial risk and gives flexibility. However, returns remain negative (TTM return on equity ~-25%), showing capital is not currently being converted into profits. In short: strong leverage profile, but weak shareholder returns due to ongoing losses.

Cash Flow

Cash generation is weak: TTM (Trailing-Twelve-Months) operating cash flow is materially negative (-19.4M) and free cash flow is also deeply negative (-28.6M), implying the business is consuming cash rather than funding itself. While free cash flow has improved versus the prior year (strong positive growth rate), the company still relies on existing liquidity/financing capacity to sustain operations. Negative cash flow alongside widening losses in TTM raises near-term execution risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.63M	39.56M	32.82M	20.67M	26.87M	24.35M
Gross Profit	28.85M	29.61M	16.89M	14.44M	18.45M	17.20M
EBITDA	-12.10M	-3.73M	-4.98M	-11.71M	-11.07M	-29.01M
Net Income	-19.25M	-9.29M	-9.51M	-14.25M	-13.29M	-50.25M
Balance Sheet
Total Assets	101.46M	109.21M	105.18M	146.95M	139.35M	144.68M
Cash, Cash Equivalents and Short-Term Investments	25.96M	36.02M	38.53M	86.03M	46.13M	69.95M
Total Debt	0.00	0.00	0.00	15.99M	11.11M	6.62M
Total Liabilities	29.52M	37.21M	32.76M	47.52M	43.63M	37.06M
Stockholders Equity	71.94M	72.00M	72.42M	99.42M	95.71M	107.62M
Cash Flow
Free Cash Flow	-28.64M	-11.07M	-14.08M	-26.55M	-30.25M	-16.82M
Operating Cash Flow	-19.43M	-2.25M	-5.89M	-10.69M	-13.15M	-16.46M
Investing Cash Flow	-9.19M	-8.82M	35.18M	-15.40M	-15.49M	47.93M
Financing Cash Flow	19.18M	8.56M	-33.42M	22.60M	4.83M	19.25M

Rolling Optics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 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:RO, the sentiment is Negative. The current price of 0.25 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.37, and below the 200-day MA of 0.74, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 45.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:RO.

Rolling Optics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ACCON	54 Neutral	kr751.69M	-30.12	-9.00%	―	-1.32%	51.89%
GPX	46 Neutral	kr64.91M	-6.62	―	―	-15.54%	-263.54%
RO	44 Neutral	kr57.33M	-2.29	-26.75%	―	-0.73%	-136.62%
FING.B	43 Neutral	kr68.18M	-0.75	-37.93%	―	-82.93%	94.83%
INSP	42 Neutral	kr8.55M	-0.31	-93.13%	―	-0.75%	65.47%