Terranet AB Class B (TERRNT.B) AI Stock Analysis

• Market Cap: kr134.36M
• Dividend Yield: N/A
• Average Volume (3M): 10.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: N/A
• EPS Growth: 24.94%
• Country: SE
• Employees: 16
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 1,944,403,200
• 10 Day Avg. Volume: 10,863,450
• 30 Day Avg. Volume: 10,496,515
• PEG Ratio: 0.05
• Price to Book (P/B): 5.11
• Price to Sales (P/S): 37.18
• P/FCF Ratio: -3.52
• 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: 43 Neutral
• Price Target: kr0.06 ▼(-8.57% Downside)

The score is held down primarily by very weak profitability and sustained cash burn, which outweigh the improvement in leverage. Technicals add additional pressure with the price below all key moving averages and negative MACD, while valuation is also constrained by a negative P/E and no indicated dividend yield.

Positive Factors

Improving leverage

Declining debt-to-equity to 0.27 in the TTM reduces leverage-related insolvency risk and interest burden, extending the company’s financial runway. A stronger balance sheet supports capital allocation for R&D and OEM partnerships, improving ability to fund product development without immediate external financing.

Strategic automotive positioning

Focus on vehicle connectivity, safety and autonomy aligns with structural industry trends toward ADAS and connected mobility. Persistent OEM demand for real-time processing and navigation algorithms creates a multi-year addressable market that supports recurring licensing and integration projects.

Diversified monetization avenues

A revenue mix of licensing, SaaS subscriptions and OEM partnerships plus potential government grants provides multiple monetization paths. Recurring SaaS and joint-development agreements can create sticky revenue and better cash visibility as product adoption scales, reducing single-revenue-source risk.

Negative Factors

Sustained negative operating cash flow

Consistent negative operating cash flow (~-37M annually) is a structural risk: it depletes cash reserves and forces reliance on external financing. Over months, sustained cash burn constrains product rollouts, commercial expansion and R&D funding unless new capital is secured, increasing dilution or leverage.

Persistent losses and revenue volatility

Large net losses and volatile/small revenue show a cost base far above current scale and unstable recognition. Persistent negative gross and net margins mean the business must drive substantial recurring revenue growth or materially cut costs to reach sustainable profitability, a multi-quarter challenge.

Deeply negative returns on equity

ROE near -136% indicates capital erosion rather than value creation. Deeply negative returns make it harder to attract new equity and raise funding without high dilution, increasing the company’s cost of capital. This undermines resilience to prolonged losses and raises long-term financing risk.

Terranet AB Class B Business Overview & Revenue Model

Company Description

Terranet AB designs and develops sensor applications for road safety. It offers VoxelFlow, a software to detect car front with lightning-fast sensor technology. The company was formerly known as TerraNet Holding AB (publ). The company was founded in 2004 and is headquartered in Lund, Sweden.

How the Company Makes Money

Terranet generates revenue primarily through the licensing of its technology and software solutions to automotive manufacturers and other stakeholders in the transportation industry. The company's revenue model includes direct sales of its proprietary technology, recurring revenue from software-as-a-service (SaaS) subscriptions, and partnerships with major automotive brands for joint development projects. Additionally, Terranet may benefit from government contracts and grants aimed at promoting innovation in transportation technology, further diversifying its revenue streams.

Terranet AB Class B Financial Statement Overview

Summary

Terranet AB Class B is facing significant financial challenges, with declining revenues, negative profit margins, and cash flow constraints. The balance sheet shows some stability, but negative returns and cash flow issues pose significant risks.

Income Statement

Terranet AB Class B has faced significant challenges in its income statement. The company demonstrated a negative revenue growth rate with a decline in revenue from 2,564,000 in 2023 to 1,078,000 in TTM (Trailing-Twelve-Months). Gross profit margin and net profit margin are negative, reflecting ongoing operational difficulties and net losses. Despite a slight improvement in EBIT, negative EBITDA margin indicates persistent profitability issues.

Balance Sheet

The balance sheet reveals moderate financial stability with a debt-to-equity ratio of 0.52 in TTM, suggesting manageable leverage. However, the equity ratio has decreased over time, indicating increased reliance on liabilities. Return on equity remains negative due to consistent net losses, which hinders investor returns.

Cash Flow

Terranet AB Class B's cash flow position is concerning, with negative free cash flow growth and a high operating cash flow to net income ratio, indicating cash flow challenges. The company's ability to generate positive cash flow is limited, leading to reliance on external financing for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	3.95M	2.56M	748.00K	1.37M	825.00K
Gross Profit	-8.81M	-1.44M	-15.47M	-15.24M	-7.45M	-8.86M
EBITDA	-40.83M	-33.86M	-33.59M	-27.23M	-40.81M	-30.13M
Net Income	-44.96M	-39.12M	-73.15M	-93.94M	-47.87M	-38.51M
Balance Sheet
Total Assets	49.95M	52.88M	60.23M	89.44M	115.90M	60.79M
Cash, Cash Equivalents and Short-Term Investments	9.73M	18.54M	29.01M	26.71M	62.79M	44.49M
Total Debt	7.14M	10.52M	18.89M	36.47M	36.93M	8.51M
Total Liabilities	18.87M	24.14M	31.48M	41.05M	42.37M	16.88M
Stockholders Equity	26.08M	28.73M	28.75M	48.38M	73.53M	43.91M
Cash Flow
Free Cash Flow	-43.54M	-41.79M	-37.06M	-31.80M	-51.79M	-33.60M
Operating Cash Flow	-37.60M	-37.17M	-34.11M	-28.12M	-41.59M	-30.39M
Investing Cash Flow	-7.58M	-4.62M	-3.12M	-8.44M	-42.86M	-3.21M
Financing Cash Flow	43.52M	31.29M	39.52M	480.00K	102.75M	66.53M

Terranet AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 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:TERRNT.B, the sentiment is Negative. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 36.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:TERRNT.B.

Terranet AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SFL	54 Neutral	kr78.12M	-42.73	-5.80%	―	5.70%	-142.93%
SFTR	54 Neutral	kr172.87M	148.57	―	―	―	―
BUSER	47 Neutral	kr102.10M	-0.82	―	―	―	―
GREAT	45 Neutral	kr324.94M	-5.41	―	―	-69.94%	-7367.66%
TERRNT.B	43 Neutral	kr134.36M	-1.94	-188.09%	―	―	24.94%