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: 1.02
• Enterprise Value/Gross Profit: 3.60
• Enterprise Value/Ebitda: 6.20
• 1Y Price Target: $40.48
• Price Target Upside: 30.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: kr28.00 ▼(-9.82% Downside)

Sinch AB's overall stock score reflects significant financial challenges and bearish technical indicators. However, positive earnings call highlights, including strategic initiatives in AI and RCS, provide some optimism. The stock's valuation remains unattractive due to ongoing losses and lack of dividend yield.

Positive Factors

Gross Margin Expansion

The expansion of gross margin to 35% indicates Sinch's ability to enhance profitability through higher-value services, which can lead to sustainable earnings growth.

AI and RCS Developments

Sinch's advancements in AI and RCS position it as a leader in conversational messaging, potentially driving long-term growth and competitive advantage.

Adjusted EBITDA Growth

The growth in adjusted EBITDA and margin improvement reflect operational efficiency and the potential for sustained profitability.

Negative Factors

Flat Net Sales

Flat net sales indicate challenges in revenue growth, which could hinder Sinch's ability to scale and compete effectively in the long term.

Competitive Pressure in EMEA

Declines in EMEA sales and profit suggest competitive challenges that may impact Sinch's market position and growth prospects in the region.

Currency Headwinds

Currency fluctuations pose a risk to financial stability, potentially affecting Sinch's profitability and international competitiveness.

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 and usage-based pricing for its communication services. Key revenue streams include charges for API usage in messaging, voice calls, and video services, where businesses pay based on the volume of messages sent or calls made. Additionally, Sinch earns revenue from value-added services, such as number verification and customer analytics. Significant partnerships with major telecom operators and integration with popular software platforms enhance Sinch's offerings, allowing them to reach a broader customer base and drive higher transaction volumes, thus contributing to its overall earnings.

Sinch AB Financial Statement Overview

Summary

Sinch AB faces significant financial challenges, particularly in profitability and revenue growth. The income statement shows ongoing losses and operational inefficiencies. The balance sheet is stable with manageable leverage, but profitability needs improvement. Cash flow is positive, but declining free cash flow growth is concerning.

Income Statement

Sinch AB's income statement reveals a challenging financial period. The company has experienced a decline in revenue growth, with a negative growth rate in the TTM period. Gross profit margins have decreased over time, and the net profit margin is negative, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Despite these challenges, the company has shown resilience in past periods with positive growth rates.

Balance Sheet

The balance sheet of Sinch AB shows a moderate financial position. The debt-to-equity ratio is relatively low, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on its equity. The equity ratio is stable, reflecting a solid capital structure, but the company needs to improve profitability to enhance shareholder value.

Cash Flow

Sinch AB's cash flow statement indicates mixed performance. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from operations despite net losses. However, the free cash flow growth rate is negative in the TTM period, highlighting potential cash flow challenges. The free cash flow to net income ratio is relatively strong, indicating efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.05B	28.71B	28.75B	27.72B	16.18B	8.02B
Gross Profit	7.93B	10.07B	2.51B	8.81B	3.93B	2.18B
EBITDA	4.60B	-3.20B	3.10B	-1.96B	1.96B	686.38M
Net Income	-356.00M	-6.41B	42.00M	-4.94B	907.00M	445.91M
Balance Sheet
Total Assets	41.10B	48.00B	53.13B	57.28B	57.08B	11.63B
Cash, Cash Equivalents and Short-Term Investments	592.00M	1.08B	1.01B	2.17B	1.87B	3.12B
Total Debt	6.33B	7.09B	2.36B	11.34B	12.52B	1.13B
Total Liabilities	16.57B	18.98B	19.47B	22.85B	23.03B	4.12B
Stockholders Equity	24.52B	29.02B	33.66B	34.43B	34.05B	7.51B
Cash Flow
Free Cash Flow	1.40B	2.35B	1.16B	1.86B	150.37M	337.56M
Operating Cash Flow	2.06B	2.94B	1.79B	2.51B	328.71M	453.92M
Investing Cash Flow	-668.00M	-604.00M	-649.00M	-691.00M	-29.06B	-2.97B
Financing Cash Flow	-1.84B	-2.23B	-2.34B	-1.51B	26.45B	5.23B

Sinch AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SINCH, the sentiment is Positive. The current price of 31.05 is above the 20-day moving average (MA) of 28.32, above the 50-day MA of 30.32, and above the 200-day MA of 27.58, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 62.82 is Neutral, neither overbought nor oversold. The STOCH value of 93.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	73 Outperform	kr104.34B	24.03	20.60%	4.31%	0.51%	14.15%
TELIA	66 Neutral	kr143.96B	34.54	10.93%	5.32%	-5.76%	-10.05%
BRE2	66 Neutral	kr2.79B	25.37	―	5.13%	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%
TRANS	48 Neutral	€327.29M	―	0.35%	―	10.36%	-100.68%
NETEL	40 Underperform	kr236.50M	-1.85	―	―	-13.07%	-372.35%

Sinch AB Corporate Events

Sinch AB Announces Increase in Shares and Votes

Sinch AB has announced an increase in its number of shares and votes to 845,578,116 following the issuance of 642,149 new shares due to the exercise of stock options and warrants. This change reflects the company’s ongoing incentive programs and may impact its market positioning and shareholder value.

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.