Sleep Cycle AB (SLEEP) AI Stock Analysis

• Market Cap: kr637.73M
• Dividend Yield: 5.88%
• Average Volume (3M): 20.60K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.18
• Revenue Growth: 7.78%
• EPS Growth: 32.85%
• Country: SE
• Employees: 33
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 0.70
• Shares Outstanding: 20,277,563
• 10 Day Avg. Volume: 17,249
• 30 Day Avg. Volume: 20,601
• PEG Ratio: 2.77
• Price to Book (P/B): 6.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.73
• 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: kr37.00
• Price Target Upside: 19.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: kr32.00 ▲(3.73%Upside)

Sleep Cycle AB presents a compelling investment opportunity driven by its robust financial performance and attractive valuation. The stock is undervalued with a low P/E ratio and offers a high dividend yield, appealing to income-focused investors. However, the current technical analysis indicates weak market momentum, which may weigh on the stock in the short term but could also present a buying opportunity if conditions improve.

Sleep Cycle AB Business Overview & Revenue Model

Company Description

Sleep Cycle AB (SLEEP) is a Swedish company specializing in sleep monitoring and analysis. The company operates within the health and wellness sector, offering a mobile application that tracks sleep patterns and provides insights to help users improve their sleep quality. The Sleep Cycle app uses sound analysis to monitor sleep cycles, waking users up during their lightest sleep phase for a more refreshed feeling.

How the Company Makes Money

Sleep Cycle AB primarily generates revenue through a freemium business model. The Sleep Cycle app is available for free with basic features, but the company offers a premium subscription model which unlocks advanced features such as detailed sleep statistics, long-term trend analysis, and personalized sleep advice. Additional revenue streams include partnerships with health organizations and potential licensing agreements for their technology. The company's earnings are influenced by the growth of its user base and the conversion rate of free users to premium subscribers.

Sleep Cycle AB Financial Statement Overview

Summary

Sleep Cycle AB is in a strong financial position with consistent revenue growth, effective cost management, and solid profitability metrics. The balance sheet reflects prudent financial management with low leverage, and cash flows remain robust, enhancing financial flexibility. While there are areas for improvement in operational efficiency, the overall outlook is positive, with a solid foundation for future growth.

Income Statement

Sleep Cycle AB demonstrates strong and consistent revenue growth and profitability. The TTM data shows a solid gross profit margin, indicating efficient cost management. However, the net profit margin is slightly lower due to operational expenses. Despite a temporary dip in EBIT for the most recent annual period, the company has maintained stable EBITDA margins, reflecting resilience in operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with a strong equity position, evidenced by a favorable equity ratio. The debt-to-equity ratio is low, indicating conservative leverage practices. Return on equity is healthy, signaling effective use of shareholder funds. The overall financial position is stable, supporting future growth.

Cash Flow

Operating cash flow remains strong, consistently covering net income, which reflects effective cash management. Free cash flow shows a positive growth trajectory, though there was a slight decline in the most recent period due to increased capital expenditures. The overall cash flow situation is solid, supporting potential reinvestment opportunities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	261.53M	236.15M	213.27M	182.94M	159.45M
Gross Profit	201.87M	128.55M	156.65M	141.62M	136.87M
EBITDA	88.45M	64.05M	46.27M	12.37M	56.87M
Net Income	62.64M	46.14M	33.94M	8.11M	44.04M
Balance Sheet
Total Assets	236.49M	230.54M	301.37M	227.76M	104.74M
Cash, Cash Equivalents and Short-Term Investments	144.82M	133.47M	232.86M	165.51M	53.14M
Total Debt	11.74M	15.92M	4.20M	2.49M	912.00K
Total Liabilities	157.04M	169.55M	140.54M	118.86M	104.62M
Stockholders Equity	79.46M	61.00M	160.83M	108.90M	127.00K
Cash Flow
Free Cash Flow	59.73M	51.00M	53.76M	14.15M	46.15M
Operating Cash Flow	63.66M	52.72M	61.53M	20.09M	46.15M
Investing Cash Flow	-3.92M	-6.81M	-7.77M	-5.93M	-16.00K
Financing Cash Flow	-48.36M	-145.30M	14.01M	98.22M	-51.34M

Sleep Cycle AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.85
• 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:SLEEP, the sentiment is Negative. The current price of 30.85 is below the 20-day moving average (MA) of 31.05, below the 50-day MA of 31.15, and below the 200-day MA of 37.34, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 77.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SLEEP.

Sleep Cycle AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLEEP	69 Neutral	kr637.73M	9.83	76.35%	5.88%	7.78%	32.85%
LITI	62 Neutral	€220.60M	795.30	-1.45%	―	5.04%	―
SPEONE	57 Neutral	kr92.06M	1.40	136.25%	―	-48.23%	―
Sector *	50 Neutral	AU$1.52B	1.95	-31.50%	3.09%	16.21%	-7.40%
TERRNT.B	43 Neutral	kr161.31M	―	-162.03%	―	―	54.72%
CHECK	42 Neutral	kr234.31M	―	-11.03%	―	-24.55%	-828.71%

Sleep Cycle AB Corporate Events

Sleep Cycle Partners with HelloFresh, Factor, and YouFoodz for In-App Wellness Offers

Sleep Cycle has announced a new in-app collaboration with HelloFresh, Factor, and YouFoodz, marking the launch of its promotion platform. This initiative aims to connect external brands with Sleep Cycle’s user base through targeted promotions, enhancing user wellness by integrating healthy eating with better sleep outcomes. The collaboration is designed to offer users exclusive deals on nutritious meals, supporting a holistic approach to well-being and strengthening Sleep Cycle’s strategic partnership program.

Sleep Cycle Launches AI-Powered Sleep Apnea Screening Study

Sleep Cycle has announced the launch of a clinical study to validate its new AI-powered feature for screening obstructive sleep apnea using only an iPhone, without additional hardware. This initiative aims to address the global challenge of undiagnosed sleep apnea, which affects millions worldwide, by leveraging smartphone technology and proprietary algorithms to democratize sleep health. The study, led by experts in sleep science and AI, has received ethical approval and aligns with international research standards, highlighting Sleep Cycle’s commitment to innovation and regulatory compliance.