Sensys Gatso Group AB (SGG) AI Stock Analysis

• Market Cap: kr430.08M
• Dividend Yield: N/A
• Average Volume (3M): 6.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 9.96%
• EPS Growth: -176.74%
• Country: SE
• Employees: 306
• Sector: Services
• Sector Strength: N/A
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.50
• Shares Outstanding: 11,530,358
• 10 Day Avg. Volume: 7,798
• 30 Day Avg. Volume: 6,090
• PEG Ratio: -2.46
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 1.20
• P/FCF Ratio: -16.79
• 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: kr69.00
• Price Target Upside: 68.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: kr43.00 ▲(4.88% Upside)

The overall stock score of 59 reflects moderate financial performance with positive cash flow generation but challenges in profitability and leverage. Technical analysis shows short-term bullish momentum, while valuation metrics highlight concerns due to a negative P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory and suggests that the company is successfully expanding its market presence and product adoption, which is crucial for long-term sustainability.

Strong Capital Structure

A strong capital structure with a healthy equity ratio provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Diverse Revenue Streams

Diversified revenue streams from hardware, software, and service contracts, especially long-term government contracts, provide stability and reduce dependency on a single income source, enhancing resilience.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, as indicated by a negative net profit margin, can hinder the company's ability to reinvest in growth and innovation, impacting long-term competitiveness.

Cash Flow Issues

Negative free cash flow growth highlights cash management issues, limiting the company's ability to fund operations and strategic initiatives without relying on external financing.

Increasing Leverage

Increasing leverage, while currently manageable, could pose risks if not controlled, potentially leading to higher interest expenses and reduced financial flexibility in the future.

Sensys Gatso Group AB Business Overview & Revenue Model

Company Description

Sensys Gatso Group AB (SGG) is a leading global provider of intelligent traffic solutions, focusing on enhancing road safety and improving traffic efficiency. The company operates in the sectors of traffic enforcement, road safety, and data analytics. SGG's core products and services include automated traffic enforcement systems, speed cameras, red-light cameras, and software solutions that facilitate traffic management and data analysis for municipalities and law enforcement agencies.

How the Company Makes Money

Sensys Gatso Group AB generates revenue primarily through the sale of its traffic enforcement systems and related software solutions. Key revenue streams include the direct sales of hardware such as speed and red-light cameras, as well as recurring revenue from maintenance contracts and software subscriptions. The company also benefits from partnerships with governmental agencies and municipalities, which often involve long-term contracts for the installation and operation of traffic enforcement systems. Additionally, SGG may receive revenue from consulting services related to traffic data analysis and optimization, further diversifying its income sources.

Sensys Gatso Group AB Financial Statement Overview

Summary

Sensys Gatso Group AB demonstrates moderate revenue growth but faces profitability challenges, as indicated by negative net profit margins and return on equity. The balance sheet is stable with a healthy equity ratio, but increasing leverage could pose risks. Cash flow metrics highlight significant challenges, with negative growth in free cash flow. Overall, the company needs to focus on improving profitability and cash flow management to enhance financial health.

Income Statement

Sensys Gatso Group AB shows a moderate revenue growth rate of 5.57% in the TTM, indicating a positive trajectory. However, the company is experiencing a negative net profit margin of -0.44%, reflecting challenges in profitability. The gross profit margin is stable at 38.14%, but the EBIT and EBITDA margins are relatively low at 4.01%, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio of 0.70 indicates a moderate level of leverage, which is manageable but has increased over the years. The return on equity is negative at -0.47%, highlighting profitability challenges. However, the equity ratio is healthy at 50.08%, suggesting a strong capital structure.

Cash Flow

The free cash flow growth rate is significantly negative at -129.50%, indicating cash flow challenges. The operating cash flow to net income ratio is negative, reflecting difficulties in converting income into cash. However, the free cash flow to net income ratio is 1.0, showing that free cash flow is aligned with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	719.26M	631.18M	623.54M	494.57M	506.79M	454.93M
Gross Profit	284.82M	241.21M	252.52M	224.91M	205.94M	161.87M
EBITDA	46.07M	23.21M	76.46M	79.59M	89.51M	56.09M
Net Income	-12.87M	5.93M	12.19M	18.56M	32.58M	5.05M
Balance Sheet
Total Assets	1.13B	1.15B	961.59M	828.25M	797.49M	767.24M
Cash, Cash Equivalents and Short-Term Investments	115.76M	165.32M	48.75M	99.72M	72.46M	108.49M
Total Debt	407.50M	381.85M	157.36M	75.67M	107.80M	108.26M
Total Liabilities	557.83M	527.23M	325.91M	202.19M	235.69M	252.69M
Stockholders Equity	577.04M	615.29M	633.10M	624.17M	561.40M	516.57M
Cash Flow
Free Cash Flow	41.84M	-44.98M	-110.72M	80.54M	-32.81M	-17.54M
Operating Cash Flow	41.84M	44.21M	-18.32M	125.55M	9.15M	15.47M
Investing Cash Flow	-98.33M	-93.39M	-102.62M	-45.01M	-41.96M	-33.01M
Financing Cash Flow	-79.71M	160.12M	70.71M	-55.18M	-3.59M	72.98M

Sensys Gatso Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.00
• 50DMA: Positive
• 100DMA: Positive
• 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:SGG, the sentiment is Positive. The current price of 41 is above the 20-day moving average (MA) of 37.91, above the 50-day MA of 38.54, and below the 200-day MA of 42.65, indicating a neutral trend. The MACD of 0.51 indicates Negative momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 77.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SGG.

Sensys Gatso Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOTE	66 Neutral	€5.36B	19.67	17.21%	3.96%	-2.98%	2.44%
SGG	59 Neutral	kr430.08M	-20.02	―	―	9.96%	-176.74%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
FING.B	49 Neutral	kr83.71M	―	-37.93%	―	-82.93%	94.83%
ACCON	48 Neutral	kr767.78M	―	-9.00%	―	-1.32%	51.89%
INSP	39 Underperform	kr8.23M	―	-93.13%	―	-0.75%	65.47%