Sonetel AB (SONE) AI Stock Analysis

• Market Cap: kr66.25M
• Dividend Yield: N/A
• Average Volume (3M): 3.12K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.36
• Revenue Growth: 17.10%
• EPS Growth: -267.16%
• Country: SE
• Employees: 39
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.15
• Shares Outstanding: 7,571,381
• 10 Day Avg. Volume: 2,438
• 30 Day Avg. Volume: 3,123
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: kr9.00 ▲(30.43% Upside)

The score is driven primarily by improving financial performance (revenue recovery and strong free cash flow growth) and a generally supportive price trend. These positives are meaningfully offset by continued profitability issues (negative margins/ROE) and weak valuation signals implied by the negative P/E, with momentum indicators remaining mixed.

Positive Factors

Revenue Growth

Sonetel's reported revenue growth of ~7.45% indicates durable demand recovery for virtual numbers and VoIP services. Sustained top-line momentum supports scale in subscription tiers, helps improve unit economics over time, and underpins reinvestment in product and market expansion.

Free Cash Flow Generation

A 30.36% rise in free cash flow and robust operating cash flow show the company is increasingly converting operations into cash. This strengthens self-funding capacity for product development, partnerships, and debt reduction, improving long-term financial flexibility and resilience.

Balance Sheet Strength

Low leverage (debt-to-equity ~0.23) and reduced total debt reflect a conservative balance sheet that can absorb downturns and finance organic growth. This structural strength preserves optionality for strategic investments and lowers refinancing risk over the medium term.

Negative Factors

Profitability Shortfalls

Persistent negative net margins and ROE show Sonetel has not converted revenue into sustainable shareholder returns. Structural profitability gaps limit retained earnings, constrain reinvestment without external capital, and raise the bar for achieving durable profitability.

Gross Margin Pressure

A declining gross profit margin signals cost or product-mix pressures that can erode long-term margin sustainability. Without improved pricing power or cost structure optimization, margin compression will reduce operating leverage and the firm's ability to convert revenue into lasting profits.

Earnings Quality Mismatch

A negative free cash flow to net income ratio indicates a disconnect between cash generation and accounting profits. Even with rising FCF, this mismatch suggests persistent accounting losses that can impede equity accumulation and make achieving consistent reported profitability more difficult.

Sonetel AB Business Overview & Revenue Model

Company Description

Sonetel AB (publ) provides telephone services to small businesses worldwide. The company offers services, such as phone numbers, conference calls, and international calls. The company is based in Stockholm, Sweden.

How the Company Makes Money

Sonetel generates revenue primarily through subscription fees for its virtual phone number services, which allow businesses to receive calls from customers around the world as if they were local. The company also monetizes its offerings through pay-as-you-go calling rates, where customers are charged for outgoing calls made using their virtual numbers. Additional revenue streams include value-added services such as call forwarding, voicemail, and advanced call handling features. Sonetel has formed strategic partnerships with telecommunications providers to enhance its service offerings and reliability, contributing positively to its earnings. Moreover, the company leverages a tiered pricing model, which incentivizes users to upgrade to higher-tier plans for more features, thereby increasing its average revenue per user.

Sonetel AB Financial Statement Overview

Summary

Sonetel AB is experiencing consistent net losses impacting its financial health. While revenue remains stable, the company faces challenges in profitability and cash flow management, which are critical for long-term sustainability.

Income Statement

Sonetel AB has seen a stable revenue with minor fluctuations over the years, but the company is currently experiencing negative net income, impacting overall profitability. The gross profit margin is healthy, but the net profit margin is negative due to consistent net losses. While EBITDA margin shows potential operational efficiency, EBIT margin has been volatile, indicating challenges in managing operating expenses.

Balance Sheet

The company's debt-to-equity ratio is moderate, suggesting a balanced approach to leveraging. However, the return on equity is negative due to recurring net losses, which is concerning. The equity ratio indicates a stable financial structure, though the declining stockholder's equity over recent years poses a risk to financial stability.

Cash Flow

Sonetel AB's cash flow situation is challenging, with negative free cash flow growth observed. The operating cash flow to net income ratio is positive, suggesting operational activities are generating cash despite net income losses. However, the free cash flow to net income ratio is negative, emphasizing cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	27.91M	―	27.91M	23.38M	23.37M	21.18M
Gross Profit	12.37M	―	12.37M	8.85M	9.69M	15.76M
EBITDA	8.91M	―	8.91M	7.51M	7.66M	6.02M
Net Income	-554.51K	―	-554.50K	-2.21M	-768.32K	-1.75M
Balance Sheet
Total Assets	43.38M	―	43.38M	40.59M	40.26M	40.09M
Cash, Cash Equivalents and Short-Term Investments	1.20M	―	1.20M	267.80K	714.83K	421.55K
Total Debt	7.07M	―	7.07M	7.66M	7.07M	6.96M
Total Liabilities	12.65M	―	12.65M	19.82M	18.32M	17.63M
Stockholders Equity	30.72M	―	30.72M	20.76M	21.93M	22.45M
Cash Flow
Free Cash Flow	4.81M	―	4.81M	-1.23M	-661.85K	861.55K
Operating Cash Flow	4.89M	―	4.89M	5.45M	6.08M	5.28M
Investing Cash Flow	-8.94M	―	-8.94M	-7.71M	-6.74M	-4.43M
Financing Cash Flow	4.98M	―	4.98M	1.81M	956.67K	-705.30K

Sonetel AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.90
• 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:SONE, the sentiment is Positive. The current price of 6.9 is below the 20-day moving average (MA) of 7.05, below the 50-day MA of 7.65, and below the 200-day MA of 7.42, indicating a bullish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 61.38 is Neutral, neither overbought nor oversold. The STOCH value of 87.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SONE.

Sonetel AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONE	65 Neutral	kr66.25M	-24.44	―	―	17.10%	-267.16%
ADVE	63 Neutral	kr844.53M	36.05	22.29%	0.48%	27.82%	305.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WPAY	51 Neutral	kr141.98M	48.25	―	―	12.09%	―
CLAV	45 Neutral	kr1.51B	-34.75	―	―	20.43%	61.67%
CYB1	40 Underperform	€2.27M	―	―	―	―	―
ANOT	39 Underperform	kr48.94M	-0.40	―	―	-36.24%	42.01%