Sensys Gatso Group AB (SGG) AI Stock Analysis

• Market Cap: kr437.00M
• Dividend Yield: N/A
• Average Volume (3M): 6.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 3.75%
• EPS Growth: -181.84%
• Country: SE
• Employees: 306
• Sector: Services
• Sector Strength: N/A
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.70
• 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: 82.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: kr41.00 ▲(8.18% Upside)

Sensys Gatso Group AB's overall stock score is primarily influenced by its financial performance and technical analysis. The company faces significant profitability and cash flow challenges, which are reflected in its financial performance score. Technical indicators suggest a bearish trend with potential for a pullback. Valuation metrics further highlight concerns, with a negative P/E ratio and no dividend yield. These factors collectively result in a below-average stock 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 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	695.25M	631.18M	623.54M	494.57M	506.79M	454.93M
Gross Profit	268.74M	241.21M	252.52M	224.91M	205.94M	161.87M
EBITDA	30.78M	23.21M	76.46M	79.59M	89.51M	56.09M
Net Income	-21.48M	5.93M	12.19M	18.56M	32.58M	5.05M
Balance Sheet
Total Assets	1.15B	1.15B	961.59M	828.25M	797.49M	767.24M
Cash, Cash Equivalents and Short-Term Investments	121.09M	165.32M	48.75M	99.72M	72.46M	108.49M
Total Debt	411.75M	381.85M	157.36M	75.67M	107.80M	108.26M
Total Liabilities	573.85M	527.23M	325.91M	202.19M	235.69M	252.69M
Stockholders Equity	575.74M	615.29M	633.10M	624.17M	561.40M	516.57M
Cash Flow
Free Cash Flow	12.33M	-44.98M	-110.72M	80.54M	-32.81M	-17.54M
Operating Cash Flow	12.33M	44.21M	-18.32M	125.55M	9.15M	15.47M
Investing Cash Flow	-90.11M	-93.39M	-102.62M	-45.01M	-41.96M	-33.01M
Financing Cash Flow	208.63M	160.12M	70.71M	-55.18M	-3.59M	72.98M

Sensys Gatso Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.90
• 50DMA: Negative
• 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 Negative. The current price of 37.9 is below the 20-day moving average (MA) of 38.18, below the 50-day MA of 39.46, and below the 200-day MA of 44.85, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 73.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	―	€5.30B	19.45	17.21%	3.70%	-2.98%	2.44%
SGG	―	kr437.00M	-20.34	-3.48%	―	3.75%	-181.84%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
FING.B	―	$79.16M	-0.87	-37.93%	―	-82.93%	94.83%
ACCON	―	kr603.25M	―	-9.00%	―	-1.32%	51.89%
INSP	―	kr22.20M	―	-93.20%	―	-50.73%	56.20%