Sinch AB (SINCH) AI Stock Analysis

• Market Cap: $25.10B
• Dividend Yield: N/A
• Average Volume (3M): 4.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: -0.30%
• EPS Growth: -3365.84%
• Country: SE
• Employees: 3,557
• Sector: Communication Services
• Sector Strength: 91
• Industry: Telecommunications Services
• EPS (TTM): 0.50
• Shares Outstanding: 844,936,000
• 10 Day Avg. Volume: 2,230,181
• 30 Day Avg. Volume: 4,843,434
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: -34.83
• 1Y Price Target: $31.52
• Price Target Upside: 6.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 49 Neutral
• Price Target: kr29.00 ▼(-2.39% Downside)

Sinch AB's overall stock score reflects significant financial challenges, with declining revenues and negative profitability margins being the most impactful factors. Technical analysis and valuation metrics further highlight bearish sentiment and unattractive valuation. The earnings call provided some positive insights into strategic initiatives and cash flow management, but these are overshadowed by the broader financial difficulties.

Sinch AB Business Overview & Revenue Model

Company Description

Sinch AB (publ) provides cloud communications services and solutions for enterprises and mobile operators in Sweden, France, the United Kingdom, Germany, Brazil, India, Singapore, other European countries, the United States, and internationally. It operates through four segments: Messaging, Voice and Video, Email, and Operators. The company offers conversation, messaging, verification, and calling APIs, channels, numbers, and inteliquent and solutions, which include marketing team, operations, customer service, conversational marketing, commerce, and care, as well as mobile identity and security. It serves to financial services, healthcare, media and entertainment, retail, telecommunication, and travel and transport industries. The company was formerly known as CLX Communications AB (publ) and changed its name to Sinch AB (publ) in July 2019. Sinch AB (publ) was founded in 2008 and is headquartered in Stockholm, Sweden.

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	3.13B	-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: Neutral
• Last Price: 29.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SINCH, the sentiment is Neutral. The current price of 29.71 is below the 20-day moving average (MA) of 30.68, below the 50-day MA of 30.17, and above the 200-day MA of 24.40, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 34.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:SINCH.

Sinch AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$44.05B	4.50	-12.81%	4.08%	1.86%	-43.08%
SINCH	49 Neutral	$25.10B	―	-20.55%	―	-0.30%	-3365.84%
0QE6	―	kr114.94B	27.49	20.92%	―	―	―
TLSNF	―	$14.18B	33.98	11.23%	4.96%	―	―
9G8	―	€51.41M	33.66	3.44%	―	―	―
BRE2	68 Neutral	kr3.12B	28.10		2.76%	9.75%	12.84%
NETEL	59 Neutral	kr487.06M	―		―	-6.27%	-201.92%

Sinch AB Corporate Events

Sinch AB Increases Share Count Following Stock Option Exercise

Sinch AB announced an increase in its total number of shares and votes to 844,935,967 due to the issuance of 311,881 new shares following the exercise of stock options within its incentive programs. This development reflects Sinch’s ongoing growth and commitment to incentivizing its workforce, potentially impacting its market position and shareholder value.

The most recent analyst rating on (SE:SINCH) stock is a Buy with a SEK43.00 price target. To see the full list of analyst forecasts on Sinch AB stock, see the SE:SINCH Stock Forecast page.

Sinch AB Reports Steady Growth Amid Currency Challenges

Sinch AB reported continued profitable growth in the first half of 2025, despite facing significant currency headwinds. The company achieved organic growth in gross profit across all regions and product categories, with a notable 6% increase in the Americas. Sinch is focusing on strategic growth levers, including expanding its enterprise customer base, enhancing its RCS and email products, and integrating AI into its platform. The company’s financial position remains strong, allowing for share buybacks, although it remains cautious about the macro-economic environment.

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.

Sinch AB Announces Share Repurchase Plan to Enhance Shareholder Value

Sinch AB’s Board of Directors has resolved to repurchase up to ten percent of its own shares, amounting to 84,493,596 shares, as part of a strategy to optimize the company’s capital and share structure, ultimately aiming to increase shareholder value. The repurchase will be conducted on Nasdaq Stockholm and will adhere to the exchange’s regulations, with the process set to begin on July 23, 2025, and continue until the Annual General Meeting in 2026.

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.

Sinch AB Announces Extraordinary General Meeting for Shareholders

Sinch AB has announced an extraordinary general meeting scheduled for August 14, 2025, allowing shareholders to participate in person, by proxy, or through postal voting. This meeting is significant for stakeholders as it provides an opportunity for shareholder engagement and decision-making, potentially impacting the company’s governance and future strategies.

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.

Sinch AB Announces Change in Shares and Votes

Sinch AB has announced a change in its number of shares and votes, now totaling 844,624,086, following the issuance of 67,864 new shares due to stock options exercised under incentive programs. This development reflects the company’s ongoing growth and commitment to incentivizing its workforce, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (SE:SINCH) stock is a Buy with a SEK55.00 price target. To see the full list of analyst forecasts on Sinch AB stock, see the SE:SINCH Stock Forecast page.

Sinch AB 2025 AGM Resolutions and Strategic Authorizations

Sinch AB’s 2025 Annual General Meeting resulted in several key resolutions, including the adoption of financial statements and the decision not to distribute dividends for 2024. The meeting also re-elected board members and approved remuneration for directors and auditors. Additionally, the board was authorized to issue new shares and acquire own shares to optimize capital structure, although a proposed long-term incentive program was not adopted.

The most recent analyst rating on (SE:SINCH) stock is a Buy with a SEK55.00 price target. To see the full list of analyst forecasts on Sinch AB stock, see the SE:SINCH Stock Forecast page.