Serstech AB (SERT) AI Stock Analysis

• Market Cap: kr101.73M
• Dividend Yield: N/A
• Average Volume (3M): 418.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: 5.57%
• EPS Growth: -47.82%
• Country: SE
• Employees: 26
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.04
• Shares Outstanding: 254,319,050
• 10 Day Avg. Volume: 584,029
• 30 Day Avg. Volume: 418,342
• PEG Ratio: -0.02
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 3.75
• P/FCF Ratio: -5.04
• 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): 0.23
• Revenue Forecast (FY): kr72.50M

• Rating: 42 Neutral
• Price Target: kr0.35 ▼(-39.14% Downside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is primarily held down by deteriorating financial performance (shrinking revenue, deeply negative margins, and significant TTM cash burn) and a bearish technical setup (price below all key moving averages with negative MACD). Valuation provides limited offset because the negative P/E reflects losses and there is no dividend yield data to support the case.

Positive Factors

Specialized Product Market

Serstech sells specialized handheld Raman chemical-ID instruments into stable, mission-critical end markets (law enforcement, customs, emergency response). Those customers value reliable identification and certification, creating durable demand, higher switching costs and repeatable after-sales/software revenue streams.

High Gross Margins

A ~70% gross margin indicates strong product-level economics from hardware and software/library sales. That margin profile can sustain R&D, maintain product differentiation and enable investment in recurring software/content, providing a structural cushion if unit volumes recover.

Low Financial Leverage

With no debt on the balance sheet, Serstech has lower refinancing risk and greater financial flexibility. This conservatism buys time to execute strategy or raise equity without imminent debt service constraints, supporting longer-term product and market development.

Negative Factors

Declining Revenue

Sustained top-line decline (TTM down ~15%) signals weakening market traction or competitive pressure. Lower revenue undermines operating leverage for a hardware-centric business, making it harder to cover fixed R&D, manufacturing and support costs and jeopardizing long-term margin recovery.

Severe Cash Burn

Material negative operating and free cash flow (TTM OCF ≈ -28M, FCF ≈ -31M) creates runway and funding risk. Ongoing cash burn requires external financing or dilution if losses persist, constraining strategic investments and risking interruptions to product development and customer support.

Deep Negative Profitability

Despite strong gross margins, the company reports steep operating and net losses (EBIT ≈ -50%, net ≈ -49%), indicating structural issues scaling the business or high operating expenses. Persistent losses erode equity, limit reinvestment capacity and increase dependency on external capital.

Serstech AB Business Overview & Revenue Model

Company Description

Serstech AB provides chemical identification instruments worldwide. It offers the Serstech 100 Indicator, a handheld, small, and light Raman spectrometer for measuring chemicals, such as explosives, narcotics, toxic industrial chemicals, pharmaceuticals, and chemical warfare agents; and ChemDash, a central management software for Serstech devices. The company also provides Serstech Arx and Serstech Arx+ revolutionizing instruments for quick and precise identification of chemical substances; and Serstech's SERS kit that allows for quick identification of low concentrations and narcotics samples. It offers its solutions for explosive, CBRN and hazmat, narcotics, and pharma applications. Serstech AB was incorporated in 2006 and is headquartered in Lund, Sweden.

How the Company Makes Money

Serstech AB generates revenue primarily through the sale of its handheld chemical identification devices. The company offers comprehensive solutions that include both hardware and accompanying software, which enable seamless integration and data management. Apart from direct sales, Serstech also engages in service contracts and maintenance agreements, providing ongoing support and updates to its clients. Partnerships with governmental agencies and collaborations with international distributors further expand their market reach, contributing significantly to their earnings. Additionally, Serstech frequently participates in public tenders, securing contracts that bolster its revenue stream.

Serstech AB Financial Statement Overview

Summary

Operating performance is weak: TTM revenue fell 15.3% and profitability deteriorated sharply (EBIT margin ~-50%, net margin ~-49%). Cash flow is a major risk with TTM operating cash flow around -28.0M and free cash flow around -31.0M. The balance sheet has no debt (0 debt-to-equity), but equity has declined meaningfully and ROE is negative (~-33%), indicating ongoing value erosion.

Income Statement

Revenue has deteriorated into TTM (Trailing-Twelve-Months), down 15.3% versus the prior period, and profitability has weakened materially. While gross margins remain high (TTM gross margin ~70%), the company is not converting that into earnings: TTM operating profitability is deeply negative (EBIT margin ~-50%; EBITDA margin ~-31%) and net margin is also sharply negative (~-49%). Results show volatility—2023 was modestly profitable at the net level, but the business reverted to significant losses in 2024 and worsened further in TTM.

Balance Sheet

The balance sheet is relatively conservative from a leverage standpoint, with total debt at 0 in both 2024 and TTM (Trailing-Twelve-Months) and a 0.0 debt-to-equity ratio, which reduces financial risk. However, equity has declined meaningfully (2024 equity ~76.6M vs TTM ~47.8M), consistent with ongoing losses, and returns on equity are negative in TTM (about -33%), signaling value erosion despite low leverage.

Cash Flow

Cash generation has turned notably weaker in TTM (Trailing-Twelve-Months), with operating cash flow at about -28.0M and free cash flow at about -31.0M, indicating elevated cash burn. This contrasts with 2024 where operating cash flow was slightly positive (~0.6M) but still paired with negative free cash flow (~-8.5M). While free cash flow growth is shown as positive in TTM, the absolute level remains deeply negative, raising funding and runway risk if losses persist.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	38.59M	52.26M	62.91M	17.11M	18.65M
Gross Profit	-28.92M	38.33M	48.59M	12.93M	15.53M
EBITDA	-20.59M	-8.78M	12.98M	-21.24M	-9.77M
Net Income	-29.27M	-9.13M	715.00K	-29.57M	-10.25M
Balance Sheet
Total Assets	57.49M	94.72M	59.71M	52.55M	66.56M
Cash, Cash Equivalents and Short-Term Investments	9.76M	9.29M	18.47M	1.87M	19.57M
Total Debt	0.00	0.00	1.80M	4.74M	1.70M
Total Liabilities	9.71M	18.16M	11.74M	25.93M	10.45M
Stockholders Equity	47.79M	76.56M	47.97M	26.62M	56.11M
Cash Flow
Free Cash Flow	-28.67M	-8.49M	-1.37M	-20.75M	-13.19M
Operating Cash Flow	-28.02M	562.00K	7.63M	-13.16M	-628.00K
Investing Cash Flow	-9.40M	-7.95M	-9.00M	-7.59M	-12.55M
Financing Cash Flow	37.88M	-1.80M	17.98M	3.04M	21.36M

Serstech AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SERT, the sentiment is Negative. The current price of 0.58 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.55, and below the 200-day MA of 0.60, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 26.88 is Positive, neither overbought nor oversold. The STOCH value of 21.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SERT.

Serstech AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ARCT	56 Neutral	kr373.87M	-17.60	-15.76%	―	―	―
FERRO	48 Neutral	kr321.53M	-11.16	―	―	-57.89%	91.07%
NEXAM	45 Neutral	kr239.83M	-11.45	-7.96%	―	-1.89%	-59.17%
AXIC.A	44 Neutral	kr82.76M	-4.14	-30.10%	―	114.57%	53.86%
XPC	44 Neutral	kr59.50M	-4.41	―	―	―	―
SERT	42 Neutral	kr101.73M	-3.48	-44.96%	―	5.57%	-47.82%