Sonetel AB (SONE) AI Stock Analysis

• Market Cap: kr43.16M
• Dividend Yield: N/A
• Average Volume (3M): 3.12K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.39
• 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: 1.25
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 2.06
• P/FCF Ratio: 11.97
• 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: 57 Neutral
• Price Target: kr6.00 ▼(-13.04% Downside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is supported primarily by solid recent cash generation and a moderately leveraged balance sheet, but is held back by weak technicals (price below key moving averages with negative MACD and low RSI) and thin/unstable profitability reflected in a negative P/E.

Positive Factors

Free Cash Flow Strength

A 30.36% increase in free cash flow signals durable improvement in cash generation from core operations. Strong FCF supports reinvestment in product, marketing, or partnerships, reduces reliance on external financing, and increases resilience across 2–6 months.

Low Leverage / Stable Balance Sheet

Low debt-to-equity (~0.23) provides financial flexibility and lowers solvency risk. This durable capital structure allows the company to fund growth initiatives, weather demand shocks, and pursue partnerships without stressing liquidity over the medium term.

Revenue Recovery and Margin Improvement

Return to revenue growth (+7.45%) combined with improving EBIT/EBITDA margins indicates recovering demand and better operational efficiency. Sustained topline expansion with margin gains supports a path toward profitability and stronger cash conversion over coming quarters.

Negative Factors

Persistent Losses / Negative ROE

Consistent negative ROE and ongoing net losses signal long-term difficulty converting operating performance into shareholder returns. If unaddressed, this undermines equity value, makes new equity raises dilutive, and pressures strategic options over the medium term.

Margin Pressure at Gross Level

Declining gross margin suggests structural pricing pressure or rising direct costs, reducing the headroom for operating leverage. Persistently negative net margins weaken durability of earnings improvements and constrain the firm's ability to reinvest while restoring profitability.

Small Scale / Limited Resources

A workforce of 39 implies limited internal capacity for product development, sales expansion, and global support. Small scale raises execution risk, increases reliance on partners, and can slow customer acquisition or innovation compared with larger VoIP competitors over the medium term.

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

Balance sheet and cash flow are the main strengths (moderate leverage with debt-to-equity ~0.22; positive TTM operating cash flow ~8.3m and free cash flow ~6.0m with ~23% growth). However, earnings quality is still a key risk: TTM net margin is very thin (~0.9%) and the company has a recent history of annual net losses (2021–2025).

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 5.5% and profitability has improved versus prior annual periods, with positive EBIT margin (~5.9%) and a strong EBITDA margin (~32%). However, net profitability remains very thin (net margin ~0.9% in TTM), and the company has a recent history of annual net losses (2021–2025 annual), indicating earnings quality and consistency are still developing.

Balance Sheet

Leverage looks moderate, with debt-to-equity around ~0.22 in TTM (and generally ~0.23–0.37 historically), which provides balance sheet flexibility. Equity is sizeable relative to assets, but returns on equity are low (TTM ROE ~0.85%) after several years of negative ROE, implying the capital base has not yet been translated into strong shareholder-level profitability.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow is solid (~8.3m) and free cash flow is positive (~6.0m) with strong growth (~23%). That said, cash conversion relative to accounting earnings is not especially strong in TTM (free cash flow to net income ~0.69), and free cash flow has been volatile historically (negative in 2023–2024 annual).

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2021
Income Statement
Total Revenue	31.65M	27.91M	23.38M	23.37M	21.18M	21.89M
Gross Profit	7.53M	12.37M	8.85M	9.69M	15.76M	16.49M
EBITDA	9.46M	8.91M	7.51M	7.66M	6.02M	1.50M
Net Income	172.87K	-554.50K	-2.21M	-768.32K	-1.75M	-6.79M
Balance Sheet
Total Assets	44.04M	43.38M	40.59M	40.26M	40.09M	41.79M
Cash, Cash Equivalents and Short-Term Investments	959.99K	1.20M	267.80K	714.83K	421.55K	281.80K
Total Debt	8.34M	7.07M	7.66M	7.07M	6.96M	8.76M
Total Liabilities	14.58M	12.65M	19.82M	18.32M	17.63M	18.71M
Stockholders Equity	29.45M	30.72M	20.76M	21.93M	22.45M	23.07M
Cash Flow
Free Cash Flow	5.99M	4.81M	-1.23M	-661.85K	861.55K	-102.44K
Operating Cash Flow	8.27M	4.89M	5.45M	6.08M	5.28M	3.49M
Investing Cash Flow	-13.83M	-8.94M	-7.71M	-6.74M	-4.43M	-3.55M
Financing Cash Flow	6.25M	4.98M	1.81M	956.67K	-705.30K	39.24K

Sonetel AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SONE, the sentiment is Negative. The current price of 6.9 is above the 20-day moving average (MA) of 6.52, below the 50-day MA of 7.15, and below the 200-day MA of 7.89, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 38.84 is Neutral, neither overbought nor oversold. The STOCH value of 40.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SONE.

Sonetel AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WPAY	62 Neutral	kr129.08M	29.95	―	―	12.09%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONE	57 Neutral	kr43.16M	-16.29	―	―	17.10%	-267.16%
ADVE	55 Neutral	kr655.39M	40.46	22.29%	0.48%	27.82%	305.33%
CLAV	50 Neutral	kr1.81B	497.96	―	―	20.43%	61.67%
ANOT	42 Neutral	kr45.20M	-0.44	―	―	-36.24%	42.01%
CYB1	40 Underperform	€1.94M	―	―	―	―	―