Serstech AB (SERT) AI Stock Analysis

• Market Cap: kr136.06M
• Dividend Yield: N/A
• Average Volume (3M): 418.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 5.57%
• EPS Growth: -47.82%
• Country: SE
• Employees: 26
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.03
• Shares Outstanding: 254,319,050
• 10 Day Avg. Volume: 584,029
• 30 Day Avg. Volume: 418,342
• PEG Ratio: 0.03
• Price to Book (P/B): 3.82
• Price to Sales (P/S): 5.59
• P/FCF Ratio: -34.40
• 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: 45 Neutral
• Price Target: kr0.52 ▼(-11.03% Downside)

The score is primarily held back by weak financial performance: sharply worsening profitability and meaningful cash burn despite strong gross margins and revenue growth. Technical signals are neutral-to-mixed, offering limited support, while valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

High gross margin and revenue growth

Sustained ~70% gross margins with mid-single-digit revenue growth indicate strong product-level economics. High product margins provide durable room to cover operating costs, fund R&D and software investment, and support eventual path to profitability if scale continues.

Debt-free balance sheet

Having no reported debt materially lowers financial risk and preserves flexibility. This durable strength gives management options—strategic investments, M&A, or bridge financing—without immediate leverage pressure, important while profitability and cash generation recover.

Recurring software and library revenue stream

A recurring software/library revenue component creates customer stickiness and predictable revenue beyond one-off instrument sales. This structural revenue mix supports higher lifetime value, upsell opportunities, and margin expansion over time as installed base grows.

Negative Factors

Severely negative net margin

A ~-49% net margin is a persistent fundamental weakness: even with strong gross margins, operating costs or losses are overwhelming profits. If this persists, it will erode retained capital, hinder reinvestment, and force strategic trade-offs or capital raises.

Weak operating and free cash flow

Negative OCF and FCF reflect cash burn despite revenue growth, creating ongoing funding needs. Over months this increases dependence on external capital, risks dilution or austerity, and limits the company's ability to invest in sales, service or product development.

Declining equity and negative returns on equity

Declining equity and negative ROE signal capital erosion from losses. Even with no debt, shrinking capital restricts resilience to shocks and may compel fundraising or cost cuts. Structural recovery is required to restore investor capital and long-term financial stability.

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

Revenue is growing (+10.6%) with strong gross margin (~70%), but profitability has deteriorated sharply (TTM net margin about -49%) and cash generation is weak (negative operating cash flow and free cash flow). A debt-free balance sheet provides some cushion, but ongoing losses and cash burn raise execution and funding risk.

Income Statement

TTM (Trailing-Twelve-Months) shows revenue growth (+10.6%) and still-strong gross margin (~70%), but profitability has deteriorated sharply: net margin fell to about -49% (vs. -17% in 2024 and near breakeven in 2023) and operating losses widened materially. Overall, the company has attractive product-level economics, but operating cost structure and/or one-offs are overwhelming gross profit in the most recent period.

Balance Sheet

The balance sheet is conservatively financed with no reported debt in TTM (Trailing-Twelve-Months) and 2024, which lowers financial risk. However, equity and assets have declined from 2024 to TTM (Trailing-Twelve-Months), and returns on equity are meaningfully negative in the latest period, reflecting ongoing losses that can continue to erode the capital base if not stabilized.

Cash Flow

Cash generation is weak in TTM (Trailing-Twelve-Months), with operating cash flow negative (-18.9m) and free cash flow also negative (-23.5m), indicating cash burn while the income statement is loss-making. While there have been periods of positive operating cash flow historically (e.g., 2023 and 2024), the latest trajectory points to renewed funding pressure unless operating performance improves or investment levels fall.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.55M	52.26M	62.91M	17.11M	18.65M	20.49M
Gross Profit	32.04M	38.33M	48.59M	12.93M	15.53M	18.22M
EBITDA	-14.32M	-8.78M	12.98M	-21.24M	-9.77M	-6.18M
Net Income	-22.45M	-9.13M	715.00K	-29.57M	-10.25M	-6.73M
Balance Sheet
Total Assets	66.32M	94.72M	59.71M	52.55M	66.56M	56.25M
Cash, Cash Equivalents and Short-Term Investments	18.43M	9.29M	18.47M	1.87M	19.57M	11.40M
Total Debt	0.00	0.00	1.80M	4.74M	1.70M	2.82M
Total Liabilities	8.52M	18.16M	11.74M	25.93M	10.45M	12.38M
Stockholders Equity	57.80M	76.56M	47.97M	26.62M	56.11M	43.87M
Cash Flow
Free Cash Flow	-23.52M	-8.49M	-1.37M	-20.75M	-13.19M	-10.75M
Operating Cash Flow	-18.91M	562.00K	7.63M	-13.16M	-628.00K	3.56M
Investing Cash Flow	-7.45M	-7.95M	-9.00M	-7.59M	-12.55M	-14.31M
Financing Cash Flow	37.88M	-1.80M	17.98M	3.04M	21.36M	6.99M

Serstech AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 0.58, below the 50-day MA of 0.61, and below the 200-day MA of 0.63, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 37.56 is Neutral, neither overbought nor oversold. The STOCH value of 24.52 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	kr453.82M	-24.62	-15.76%	―	―	―
FERRO	52 Neutral	kr377.63M	-6.62	―	―	-57.89%	91.07%
SERT	45 Neutral	kr136.06M	-5.78	-44.96%	―	5.57%	-47.82%
NEXAM	45 Neutral	kr242.91M	-11.65	-7.96%	―	-1.89%	-59.17%
AXIC.A	44 Neutral	kr109.36M	-6.08	-30.10%	―	114.57%	53.86%
XPC	44 Neutral	kr56.20M	-4.41	―	―	―	―