TagMaster AB Class B (TAGM.B) AI Stock Analysis

• Market Cap: €238.02M
• Dividend Yield: N/A
• Average Volume (3M): 5.15K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.39
• Revenue Growth: 14.89%
• EPS Growth: N/A
• Country: SE
• Employees: 164
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.53
• Shares Outstanding: 14,647,526
• 10 Day Avg. Volume: 5,468
• 30 Day Avg. Volume: 5,149
• PEG Ratio: -0.63
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 3.36
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: kr16.50 ▲(0.61% Upside)

TagMaster AB Class B's overall stock score is driven by its strong financial performance and attractive valuation, despite current bearish technical indicators. The company's solid cash flow and prudent leverage strategy provide a stable foundation, while its low P/E ratio offers potential upside. However, technical analysis suggests caution in the short term due to bearish momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Market Position

Strategic partnerships expand market reach and revenue potential, reinforcing TagMaster's competitive position in the RFID sector.

Cost Management

Strong gross profit margins reflect effective cost management, enhancing profitability and providing a buffer against market fluctuations.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may limit investment in growth opportunities and affect financial flexibility, posing a risk to long-term stability.

Low Net Profit Margin

A low net profit margin suggests limited profitability, which could hinder reinvestment in the business and affect shareholder returns.

Return on Equity

Low return on equity indicates inefficient use of shareholder funds, potentially impacting investor confidence and future capital raising.

TagMaster AB Class B Business Overview & Revenue Model

Company Description

TagMaster AB (publ), a technology company, develops and sells advanced sensor systems and solutions based on radio, radar, magnetic and camera technologies under the TagMaster, CitySync, Balogh, CA Traffic, Magsys, Hikob, and Sensys Networks brand names. The company develops and markets radio frequency identification products for traffic and rail applications; and automatic number plate recognition cameras for vehicle identification and access control. Its products are used in parking and access control, security, traffic, tolling, airport, mining and port, and fleet operation areas. The company exports its products primarily to Europe, the Middle East, Asia, and North America through a network of partners and systems integrators. TagMaster AB (publ) was incorporated in 1994 and is headquartered in Kista, Sweden.

How the Company Makes Money

TagMaster generates revenue through the sale of its RFID products and solutions, which include hardware such as readers and tags, as well as software licensing and service agreements. The company has established key revenue streams from direct sales to end-users, partnerships with system integrators, and collaborations with manufacturers that incorporate TagMaster's technology into their products. Additionally, recurring income from service contracts and software maintenance contributes to the overall revenue. Strategic partnerships with companies in various sectors, including transportation and logistics, further enhance TagMaster's market reach and revenue potential.

TagMaster AB Class B Financial Statement Overview

Summary

TagMaster AB Class B demonstrates strong revenue growth and a solid gross profit margin, indicative of effective cost management. The balance sheet reflects a stable financial position with moderate leverage. However, the decline in free cash flow growth and low net profit margin highlight areas for improvement in profitability and cash management.

Income Statement

TagMaster AB Class B has shown consistent revenue growth, with a TTM revenue growth rate of 6.1%. The gross profit margin remains strong at 68.9%, indicating efficient cost management. However, the net profit margin is relatively low at 1.3%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are modest, reflecting stable operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.46, indicating a balanced approach to leveraging. Return on equity is low at 2.3%, suggesting limited profitability relative to shareholder equity. The equity ratio is healthy, showing a solid capital structure with equity financing making up a significant portion of total assets.

Cash Flow

Free cash flow has decreased by 39.7% in the TTM, which is a concern. However, the operating cash flow to net income ratio is positive, indicating that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is high, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	477.01M	420.44M	404.71M	358.60M	326.89M	286.45M
Gross Profit	263.34M	287.10M	277.12M	244.76M	223.53M	191.50M
EBITDA	60.38M	32.36M	35.61M	9.36M	23.56M	-414.00K
Net Income	21.19M	4.66M	13.68M	24.15M	5.86M	-20.37M
Balance Sheet
Total Assets	474.64M	556.69M	428.58M	413.93M	367.40M	319.15M
Cash, Cash Equivalents and Short-Term Investments	41.76M	46.89M	25.06M	36.22M	53.52M	51.79M
Total Debt	96.73M	147.62M	75.28M	57.28M	64.26M	50.45M
Total Liabilities	218.69M	270.44M	169.29M	161.70M	167.46M	141.40M
Stockholders Equity	255.96M	286.25M	259.29M	252.23M	199.94M	177.76M
Cash Flow
Free Cash Flow	52.31M	57.77M	27.50M	-8.06M	24.98M	23.73M
Operating Cash Flow	53.83M	58.64M	28.45M	-6.68M	26.25M	27.43M
Investing Cash Flow	-62.78M	-64.61M	-51.50M	-1.28M	-33.60M	-1.50M
Financing Cash Flow	4.17M	26.09M	11.96M	-15.04M	4.95M	-9.86M

TagMaster AB Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TAGM.B, the sentiment is Positive. The current price of 16.4 is above the 20-day moving average (MA) of 15.63, above the 50-day MA of 15.88, and above the 200-day MA of 14.80, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.96 is Neutral, neither overbought nor oversold. The STOCH value of 65.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:TAGM.B.

TagMaster AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAGM.B	68 Neutral	€238.02M	11.24	8.23%	―	14.89%	―
KEBNI.B	62 Neutral	€495.25M	84.58	8.68%	―	9.30%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAVEN	55 Neutral	€298.98M	―	-5.81%	―	-9.79%	-144.24%
INCOAX	49 Neutral	€70.88M	―	-24.59%	―	-48.24%	-48.99%
WAYS	48 Neutral	kr265.50M	479.59	―	―	10.55%	―
HDW.B	37 Underperform	―	―	-317.77%	―	-14.71%	93.93%