Sonetel AB (SONE) AI Stock Analysis

• Market Cap: kr60.95M
• Dividend Yield: N/A
• Average Volume (3M): 3.12K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.35
• 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: 56 Neutral
• Price Target: kr7.50 ▲(7.14% Upside)

Sonetel AB's overall stock score is primarily influenced by its financial performance, which shows signs of recovery but is hindered by profitability challenges. Technical analysis indicates bearish momentum, and valuation metrics are weak due to a negative P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

The positive revenue growth rate indicates a recovery from previous declines, suggesting the company is regaining market traction and expanding its customer base.

Cash Flow Generation

Strong free cash flow growth highlights the company's ability to generate cash from operations, providing financial flexibility for investments and debt reduction.

Operational Efficiency

Improved EBIT and EBITDA margins reflect better operational efficiency, indicating effective cost management and potential for enhanced profitability.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, highlighted by a negative net profit margin, may hinder the company's ability to reinvest in growth and compete effectively.

Gross Margin Pressure

Decreased gross profit margin suggests pressure on cost management, which could impact the company's ability to maintain competitive pricing and profitability.

Negative Return on Equity

Consistently negative return on equity indicates challenges in generating returns for shareholders, potentially affecting investor confidence and long-term growth prospects.

Sonetel AB Business Overview & Revenue Model

Company Description

Sonetel AB (SONE) is a global telecommunications company that specializes in providing virtual phone numbers and communication solutions for businesses of all sizes. Operating in the digital communication sector, Sonetel offers services such as international calling, call forwarding, and voice over IP (VoIP) solutions. The company's core product lineup is aimed at helping businesses enhance their communication capabilities across borders, enabling them to establish a local presence in various markets without the need for physical offices.

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: Negative
• Last Price: 7.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7 is below the 20-day moving average (MA) of 8.14, below the 50-day MA of 8.77, and below the 200-day MA of 7.13, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 36.37 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, 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
ADVE	62 Neutral	€650.99M	27.79	22.29%	0.62%	27.82%	305.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONE	56 Neutral	kr60.95M	―	―	―	17.10%	-267.16%
WPAY	51 Neutral	kr158.86M	55.94	―	―	12.09%	―
ANOT	43 Neutral	kr52.58M	―	―	―	-36.24%	42.01%
CLAV	37 Underperform	kr1.16B	-27.53	―	―	20.43%	61.67%
CYB1	36 Underperform	€3.64M	-2.56	―	―	―	―