Sensys Gatso Group AB (SGG) AI Stock Analysis

• Market Cap: kr517.71M
• Dividend Yield: N/A
• Average Volume (3M): 7.53K
• Price to Earnings (P/E): 86.0
• Beta (1Y): 0.36
• Revenue Growth: 3.66%
• EPS Growth: -114.29%
• Country: SE
• Employees: 306
• Sector: Services
• Sector Strength: N/A
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -1.30
• Shares Outstanding: 11,530,358
• 10 Day Avg. Volume: 12,340
• 30 Day Avg. Volume: 7,528
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: kr45.00
• Price Target Upside: -2.17% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: kr45.00 ▼(-2.17% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. While revenue growth is stable, profitability and cash flow issues are significant concerns. Technical indicators show mild bullish momentum but also potential weakness. Valuation challenges due to a negative P/E ratio and lack of dividend yield further impact the score.

Sensys Gatso Group AB Business Overview & Revenue Model

Company Description

Sensys Gatso Group AB (publ), together with its subsidiaries, designs, develops, owns, operates, markets, and sells traffic management and enforcement solutions to nations, cities, and fleet owners worldwide. It operates through Managed Services and Systems Sales segments. The company offers speed enforcement systems, such as fixed spot, portable, moving in-vehicle, and smart in-tunnel speed, as well as dual speed warning and enforcement systems, and section control solutions; red-light enforcement system, a road safety asset for risk intersections; Automated Traffic Enforcement as a Service; and stopping violation systems for school buses, and school crossing dual warning and enforcement systems, as well as managed services. It also provides vehicle access control solutions for security and traffic management applications, including vehicle restricted urban zones, dedicated vehicle lane compliance, low emission zones, and selective short-cut enforcement; automated license plate recognition based system that helps to check vehicles on roadworthiness, insurance, registration, and tax requirements, as well as to monitor and trace the stolen vehicles and vehicles linked to national security issues. In addition, the company's back office software solutions include Flux, a sensor management platform; Puls, a data collection and analytics based software; and Xilium, a violation processing software. It serves police and road authorities, and private operators directly or through partners, agents, and distributors. The company was incorporated in 1982 and is headquartered in Jönköping, Sweden.

How the Company Makes Money

Sensys Gatso Group AB generates revenue through multiple streams, including the sale of hardware and software solutions for traffic enforcement, as well as service contracts for maintenance and operation of their systems. A significant part of their income comes from long-term contracts with municipalities and government agencies, where they provide end-to-end solutions that include installation, support, and data analytics. Additionally, SGG benefits from partnerships with technology providers and local governments, which can lead to joint ventures and collaborative projects that further enhance their market reach and revenue potential.

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: 46.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 46 is above the 20-day moving average (MA) of 43.54, above the 50-day MA of 43.18, and below the 200-day MA of 49.18, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 67.00 is Neutral, neither overbought nor oversold. The STOCH value of 88.77 is Negative, 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
Sector *	62 Neutral	kr26.92B	-5.83	-7.45%	3.53%	6.20%	-105.50%
SGG	54 Neutral	kr517.71M	85.99	-0.48%	―	3.66%	-114.29%
FGRRF	―	$14.84M	―	-95.82%	―	―	―
NQA	―	€489.42M	20.86	16.64%	―	―	―
7YV	―	€2.16M	―	-91.67%	―	―	―
2LU	―	€33.43M	―	-10.88%	―	―	―
UNIBAP	―	kr375.08M	51.48		―	―	―