Sensys Gatso Group AB (SGG) AI Stock Analysis

• Market Cap: kr495.81M
• Dividend Yield: N/A
• Average Volume (3M): 5.50K
• Price to Earnings (P/E): 86.0
• Beta (1Y): 0.30
• Revenue Growth: 3.66%
• EPS Growth: -114.29%
• Country: SE
• Employees: 306
• Sector: Industrials
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.25
• Shares Outstanding: 11,530,358
• 10 Day Avg. Volume: 5,517
• 30 Day Avg. Volume: 5,498
• PEG Ratio: -1.00
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.41
• 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: kr72.00
• Price Target Upside: 71.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: kr44.00 ▲(4.51%Upside)

The overall stock score reflects the company's stable revenue growth overshadowed by significant profitability and cash flow challenges. Technical analysis indicates neutral momentum, while valuation concerns due to a negative P/E ratio further weigh on the score. Strategic improvements in profitability and operational efficiency are crucial for future performance.

Sensys Gatso Group AB Business Overview & Revenue Model

Company Description

Sensys Gatso Group AB (SGG) is a leading provider in the global traffic safety solutions market, specializing in the development and implementation of advanced traffic enforcement systems. The company is at the forefront of technology in sectors such as traffic management and road safety, offering an array of products including speed enforcement cameras, red-light enforcement systems, and automated traffic control solutions. Sensys Gatso's core mission is to enhance road safety and efficiency through innovative technology and data-driven solutions.

How the Company Makes Money

Sensys Gatso Group AB generates revenue primarily through the sale and maintenance of its traffic enforcement systems and solutions. The company capitalizes on its advanced technology to offer end-to-end solutions, including hardware, software, and support services, to governments and municipalities worldwide. Key revenue streams include the direct sale of enforcement products, long-term service and maintenance contracts, and software solutions that support traffic data analysis and management. Additionally, Sensys Gatso often engages in public-private partnerships, which can provide stable and recurring revenue through shared service agreements. The company's growth is significantly supported by contracts with governmental agencies that seek to improve public safety and traffic management efficiency.

Sensys Gatso Group AB Financial Statement Overview

Summary

Sensys Gatso Group AB shows stable revenue growth but faces profitability challenges with a negative net profit margin and cash flow issues. Despite a solid balance sheet with manageable leverage, the company's decrease in equity ratio and negative return on equity highlight the need for improved profitability and operational efficiency.

Income Statement

The company shows a stable revenue growth trajectory with a TTM revenue increase of 4.34% compared to the previous annual report. Despite a slight decrease in gross profit margin from 38.22% to 38.14%, the net profit margin has turned negative at -0.44% in TTM, indicating profitability challenges. The EBIT and EBITDA margins are consistent at 4.01%. Overall, the revenue growth is promising, but profitability concerns need attention.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.70 in TTM, indicating manageable leverage. However, the equity ratio has decreased to 50.39%, suggesting a lower proportion of equity financing relative to total assets. The return on equity has turned negative in TTM due to the net loss. The balance sheet reflects stability but highlights the need for improved profitability.

Cash Flow

The cash flow statement shows a negative free cash flow of -41.80M in TTM, with a significant decrease from the positive 44.21M in the previous year. Operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is also concerning, reflecting operational and cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	658.59M	631.18M	623.54M	494.57M	506.79M	454.93M
Gross Profit	251.17M	241.21M	252.52M	224.91M	205.94M	161.87M
EBITDA	26.42M	23.21M	76.46M	79.59M	89.51M	56.09M
Net Income	-2.92M	5.93M	12.19M	18.56M	32.58M	5.05M
Balance Sheet
Total Assets	1.14B	1.15B	961.59M	828.25M	797.49M	767.24M
Cash, Cash Equivalents and Short-Term Investments	125.44M	165.32M	48.75M	99.72M	72.46M	108.49M
Total Debt	399.71M	381.85M	157.36M	75.67M	107.80M	108.26M
Total Liabilities	565.28M	527.23M	325.91M	202.19M	235.69M	252.69M
Stockholders Equity	574.06M	615.29M	633.10M	624.17M	561.40M	516.57M
Cash Flow
Free Cash Flow	-41.80M	44.21M	-110.72M	80.54M	-32.81M	-17.54M
Operating Cash Flow	-41.80M	44.21M	-18.32M	125.55M	9.15M	15.47M
Investing Cash Flow	-79.19M	-93.39M	-102.62M	-45.01M	-41.96M	-33.01M
Financing Cash Flow	239.92M	160.12M	70.71M	-55.18M	-3.59M	72.98M

Sensys Gatso Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.10
• 50DMA: Positive
• 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:SGG, the sentiment is Positive. The current price of 42.1 is below the 20-day moving average (MA) of 42.23, below the 50-day MA of 42.32, and below the 200-day MA of 53.65, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 62.64 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
AVT.B	77 Outperform	kr471.04M	35.41	27.66%	1.20%	25.00%	24.34%
AAC	64 Neutral	kr757.98M	―	-1.82%	―	27.57%	86.63%
GGEO	64 Neutral	€102.45M	18.20	4.23%	―	4.75%	-18.12%
Sector *	59 Neutral	AU$1.65B	9.63	11.29%	3.80%	6.45%	5.22%
SGG	57 Neutral	kr495.81M	85.99	-0.48%	―	3.66%	-114.29%
PION.B	50 Neutral	kr266.89M	―	-39.44%	4.53%	-21.21%	-1708.20%
SAXG	43 Neutral	kr61.05M	―	-36.51%	―	-12.51%	69.88%