Serstech AB (SERT) AI Stock Analysis

• Market Cap: €172.68M
• Dividend Yield: N/A
• Average Volume (3M): 240.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -10.46%
• EPS Growth: -680.00%
• Country: SE
• Employees: 26
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals
• EPS (TTM): -0.05
• Shares Outstanding: 254,319,050
• 10 Day Avg. Volume: 197,422
• 30 Day Avg. Volume: 240,645
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.13
• 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

• Rating: 47 Neutral
• Price Target: ―

Serstech AB's overall stock score is 47, reflecting a challenging financial position with declining revenues and persistent net losses. The strong balance sheet provides some stability, but cash flow management needs improvement. The technical analysis suggests a neutral to slightly bearish trend, and the stock's valuation is hampered by a negative P/E ratio and lack of dividend yield. Overall, the company needs to enhance revenue growth and profitability to improve its stock performance.

Serstech AB Business Overview & Revenue Model

Company Description

Serstech AB (SERT) is a Swedish company specializing in the development and manufacture of portable chemical identification instruments. These devices are designed to enhance safety and security by allowing for the rapid identification of hazardous materials, drugs, and explosives in various environments. Serstech's products are predominantly used by law enforcement, military, and emergency response teams across the globe, making them a pivotal player in the sectors of safety and security technology.

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

Serstech AB faces challenges in achieving profitability, as reflected in its income statement with declining revenues and persistent net losses. The balance sheet is strong, showing low financial leverage and a high equity ratio, which provides stability. Cash flow management shows room for improvement, with negative free cash flow trends. While the company demonstrates financial resilience, efforts to enhance revenue growth and profitability are crucial for future success.

Income Statement

Serstech AB shows a mixed performance in its income statement. The gross profit margin is relatively healthy, but there is a significant decline in total revenue from 2023 to 2024, indicating a negative revenue growth rate. Additionally, the company has consistently reported net losses, leading to a negative net profit margin. The absence of positive EBIT and negative EBITDA margin further reflect challenges in operational profitability.

Balance Sheet

The balance sheet indicates a strong equity position with an impressive equity ratio, suggesting financial stability. The company has eliminated its total debt, reducing financial risk. However, the return on equity is negative due to ongoing net losses, and this remains a concern for profitability and return for shareholders.

Cash Flow

Cash flow analysis reveals a decline in operating cash flow compared to previous years, yet the company maintains a significant cash reserve. The free cash flow remains negative, indicating cash outflows exceed inflows, primarily due to substantial capital expenditures. The operating cash flow to net income ratio is positive, showing better cash generation relative to net income losses.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
57.98M	52.26M	62.91M	17.11M	18.65M	20.49M
	Gross Profit
40.57M	38.33M	48.59M	12.93M	15.53M	18.22M
	EBIT
-11.05M	-9.04M	-1.25M	-29.28M	-10.68M	-6.54M
	EBITDA
-1.83M	-1.14M	12.98M	-21.24M	-9.77M	-6.18M
	Net Income Common Stockholders
-9.86M	-9.13M	715.00K	-29.57M	-10.25M	-6.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.07M	9.29M	18.47M	1.87M	19.57M	11.40M
	Total Assets
90.43M	94.72M	59.71M	52.55M	66.56M	56.25M
	Total Debt
0.00	0.00	1.80M	4.74M	1.70M	2.82M
	Net Debt
-19.07M	-9.29M	-16.67M	2.87M	-17.88M	-8.58M
	Total Liabilities
15.28M	18.16M	11.74M	25.93M	10.45M	12.38M
	Stockholders Equity
75.15M	76.56M	47.97M	26.62M	56.11M	43.87M
Cash Flow		Free Cash Flow
-11.27M	-8.49M	-1.37M	-20.75M	-13.19M	-10.75M
	Operating Cash Flow
-4.23M	562.00K	7.63M	-13.16M	-628.00K	3.56M
	Investing Cash Flow
-31.12M	-7.95M	-9.00M	-7.59M	-12.55M	-14.31M
	Financing Cash Flow
36.48M	-1.80M	17.98M	3.04M	21.36M	6.99M

Serstech AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 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:SERT, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.76, and below the 200-day MA of 1.01, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 11.34 is Positive, 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 *	60 Neutral	kr34.37B	-7.55	0.97%	13.43%	12.43%	17.85%
AXIC.A	59 Neutral	kr171.43M	―	-27.73%	―	373.74%	46.13%
NEXAM	52 Neutral	€302.63M	―	-5.94%	―	2.29%	45.77%
SERT	47 Neutral	€172.68M	―	-15.65%	―	-10.46%	-680.00%