Sinch AB (SINCH) AI Stock Analysis

• Market Cap: $28.74B
• Dividend Yield: N/A
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: -1.62%
• EPS Growth: 94.01%
• Country: SE
• Employees: 3,557
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.01
• Shares Outstanding: 844,936,000
• 10 Day Avg. Volume: 2,007,619
• 30 Day Avg. Volume: 2,545,140
• PEG Ratio: <0.01
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 7.43
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: -34.83
• 1Y Price Target: $34.75
• Price Target Upside: 31.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: kr28.00 ▲(5.66% Upside)

Sinch AB's overall stock score reflects significant financial challenges, with declining revenues and negative profitability margins being the most impactful factors. While the earnings call provided some positive strategic insights, the technical analysis and valuation remain concerning. The company's efforts in AI and RCS developments offer a glimmer of hope, but substantial improvements in financial performance are necessary for a more favorable outlook.

Sinch AB Business Overview & Revenue Model

Company Description

Sinch AB (SINCH) is a leading global provider of communications as a service (CaaS) solutions, specializing in enabling businesses to engage with their customers through various communication channels. Founded in Sweden, the company operates in several sectors, including messaging, voice, and video communications, offering a comprehensive suite of products that facilitate seamless and scalable interactions. Sinch's core services include cloud-based messaging, voice calling, and video conferencing, empowering enterprises to enhance customer engagement and streamline communication processes.

How the Company Makes Money

Sinch generates revenue primarily through its subscription-based model, where businesses pay for access to its communication APIs and services. Key revenue streams include charges for SMS and voice communication, where customers are billed based on usage volume, as well as monthly fees for premium services and features. Additionally, Sinch benefits from significant partnerships with telecom operators and technology companies, which enhance its service offerings and expand its customer base. The company's focus on innovation and integration of emerging technologies further contributes to its earnings, as it continually adapts to meet the evolving needs of businesses in the digital communication landscape.

Sinch AB Financial Statement Overview

Summary

Sinch AB faces significant financial challenges, with declining revenues, negative profitability margins, and mixed cash flow performance. The balance sheet shows a strong equity position but is offset by negative returns on equity. The company needs to address its operational inefficiencies and improve cash flow generation to enhance its financial health.

Income Statement

Sinch AB's income statement reveals a challenging financial period. The TTM data shows a negative revenue growth rate of -1.47%, indicating a decline in sales. The gross profit margin is at 43.37%, which is relatively healthy, but the net profit margin is significantly negative at -22.56%, reflecting substantial losses. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies. Overall, the company faces profitability challenges, with declining revenues and negative margins.

Balance Sheet

The balance sheet shows moderate financial stability. The debt-to-equity ratio is 0.23, indicating a conservative leverage position. However, the return on equity is negative at -23.68%, reflecting the company's inability to generate profits from its equity base. The equity ratio stands at 60.76%, suggesting a strong equity position relative to total assets. While the company maintains a solid equity base, the negative ROE is a concern.

Cash Flow

Cash flow analysis indicates mixed results. The free cash flow growth rate is negative at -20.80%, signaling a decline in cash generation. The operating cash flow to net income ratio is 0.27, suggesting that operating cash flows are not sufficient to cover net losses. The free cash flow to net income ratio is 0.69, indicating some level of cash flow support despite net losses. Overall, the cash flow situation is challenging, with declining free cash flow and insufficient operating cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.54B	28.71B	28.75B	27.72B	16.18B	8.02B
Gross Profit	12.38B	10.07B	2.51B	8.81B	3.93B	2.18B
EBITDA	-819.00M	-3.20B	3.10B	-1.96B	1.96B	686.38M
Net Income	-6.44B	-6.41B	42.00M	-4.94B	907.00M	445.91M
Balance Sheet
Total Assets	42.11B	48.00B	53.13B	57.28B	57.08B	11.63B
Cash, Cash Equivalents and Short-Term Investments	717.00M	1.08B	1.01B	2.17B	1.87B	3.12B
Total Debt	5.96B	7.09B	2.36B	11.34B	12.52B	1.13B
Total Liabilities	16.52B	18.98B	19.47B	22.85B	23.03B	4.12B
Stockholders Equity	25.58B	29.02B	33.66B	34.43B	34.05B	7.51B
Cash Flow
Free Cash Flow	1.45B	2.35B	1.16B	1.86B	150.37M	337.56M
Operating Cash Flow	2.10B	2.94B	1.79B	2.51B	328.71M	453.92M
Investing Cash Flow	-660.00M	-604.00M	-649.00M	-691.00M	-29.06B	-2.97B
Financing Cash Flow	-1.40B	-2.23B	-2.34B	-1.51B	26.45B	5.23B

Sinch AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.50
• 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:SINCH, the sentiment is Negative. The current price of 26.5 is below the 20-day moving average (MA) of 30.21, below the 50-day MA of 30.96, and below the 200-day MA of 27.30, indicating a bearish trend. The MACD of -1.34 indicates Positive momentum. The RSI at 33.86 is Neutral, neither overbought nor oversold. The STOCH value of 6.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SINCH.

Sinch AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEL2.B	68 Neutral	kr104.34B	24.03	20.60%	4.36%	0.51%	14.15%
TELIA	68 Neutral	$140.05B	33.60	10.93%	5.47%	-5.76%	-10.05%
BRE2	67 Neutral	kr2.76B	25.11	―	5.20%	9.72%	4.26%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SINCH	51 Neutral	$28.74B	-4.46	-1.23%	―	-1.62%	94.01%
NETEL	50 Neutral	kr236.50M	-1.85	―	―	-13.07%	-372.35%
TRANS	47 Neutral	kr329.86M	―	0.35%	―	10.36%	-100.68%

Sinch AB Corporate Events

Sinch AB Reports Improved Profitability and Growth

Sinch AB is a leading provider of cloud-based communication services, specializing in messaging, voice, and video solutions for businesses across various industries. The company operates primarily in the Communications Platform as a Service (CPaaS) sector, offering innovative solutions that integrate AI and conversational messaging.

Sinch AB Earnings Call: Profitability Amid Challenges

Sinch AB’s recent earnings call painted a picture of strong profitability and strategic progress, despite some regional challenges and currency headwinds. The company reported a record gross margin and was recognized in Gartner’s Magic Quadrant, underscoring its strategic milestones. However, flat net sales and difficulties in the EMEA and Asia Pacific regions were highlighted as areas of concern. Despite these challenges, Sinch’s initiatives in AI and RCS developments suggest a positive outlook for the future.

Sinch AB Reports Q3 2025 Results: Profitability and Strategic Growth

Sinch AB reported its third-quarter 2025 results, highlighting improved profitability and strategic positioning for long-term growth. Despite a slight decline in net sales due to currency effects, the company saw organic growth in gross profit and EBITDA. Sinch’s strong market position was reinforced by being named a Magic Quadrant Leader by Gartner for the third consecutive year and expanding its AI-driven platform capabilities. The company also saw significant growth in RCS for Business messaging, particularly in the US, and increased email volumes. These developments underscore Sinch’s commitment to leveraging AI and conversational messaging to drive market growth and enhance customer engagement.

The most recent analyst rating on (SE:SINCH) stock is a Hold with a SEK35.00 price target. To see the full list of analyst forecasts on Sinch AB stock, see the SE:SINCH Stock Forecast page.

Sinch AB Approves Long-term Incentive Program for Employees

Sinch AB held an extraordinary general meeting to approve a long-term incentive program, LTI 2025, for up to 625 employees, offering stock options with performance and time-based vesting conditions. The meeting also resolved to hedge financial exposure related to LTI 2025 through a share swap agreement with a third party, as the proposal for the board to acquire own shares did not pass.

The most recent analyst rating on (SE:SINCH) stock is a Buy with a SEK38.30 price target. To see the full list of analyst forecasts on Sinch AB stock, see the SE:SINCH Stock Forecast page.