Tempest Security AB (TSEC) AI Stock Analysis

• Market Cap: kr165.12M
• Dividend Yield: N/A
• Average Volume (3M): 4.82K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• Revenue Growth: 6.25%
• EPS Growth: -1703.58%
• Country: SE
• Employees: 557
• Sector: Services
• Sector Strength: N/A
• Industry: Security & Protection Services
• EPS (TTM): -0.26
• Shares Outstanding: 10,483,549
• 10 Day Avg. Volume: 2,609
• 30 Day Avg. Volume: 4,823
• PEG Ratio: N/A
• 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: kr14.50
• Price Target Upside: 2.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: kr14.50 ▲(2.47% Upside)

The overall stock score is primarily affected by weak financial performance and unattractive valuation metrics. Despite some technical momentum suggesting short-term positive trends, the underlying financial instability and lack of earnings visibility remain significant concerns. Improvement in cash flow and profitability is crucial for a more favorable outlook.

Tempest Security AB Business Overview & Revenue Model

Company Description

Tempest Security AB (TSEC) is a Swedish company specializing in providing comprehensive security services. The company operates across various sectors, including corporate security, technical security solutions, and risk management. Its core services include manned guarding, mobile security, alarm monitoring, and consulting services tailored to meet the diverse needs of its clients.

How the Company Makes Money

Tempest Security AB generates revenue primarily through offering an array of security services to businesses and organizations. Key revenue streams include contracts for manned guarding services, where security personnel are stationed at client sites, and mobile security services, which involve patrols and rapid response units. Additionally, the company earns from technical security solutions, such as alarm system installations and monitoring services. Consulting services, which provide risk assessments and security strategy development for clients, also contribute to their income. Strategic partnerships with technology providers enhance their service offerings, allowing for integrated security solutions, thus expanding their market reach and client base.

Tempest Security AB Financial Statement Overview

Summary

Tempest Security AB faces significant financial challenges, marked by declining profitability and cash generation issues. Negative earnings and high leverage pose risks, despite decent gross profit margins.

Income Statement

The income statement reveals a challenging period for Tempest Security AB, with declining profitability. Gross Profit Margin stands at 49% for TTM, indicating some efficiency in cost management, but negative EBIT and EBITDA margins reflect operational inefficiencies. The Net Profit Margin is negative due to significant net losses, and revenue growth has slowed considerably, signaling potential difficulties in maintaining competitive positioning.

Balance Sheet

The balance sheet indicates moderate financial stability. The Debt-to-Equity ratio of 1.57 suggests a high reliance on debt, posing a risk in a volatile market. ROE has turned negative, reflecting poor profitability against equity. However, the Equity Ratio of 12.7% indicates some resilience, though lower than industry norms. The company may face challenges in sustaining growth without improving leverage and profitability.

Cash Flow

Cash flow analysis shows distress, with Operating Cash Flow turning negative in the TTM period. The Free Cash Flow has also decreased significantly, indicating struggles in generating liquidity from operations. The negative Free Cash Flow to Net Income Ratio highlights challenges in converting earnings into cash, raising concerns about the company's ability to fund operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	512.76M	485.63M	469.36M	424.33M	339.66M	299.69M
Gross Profit	251.23M	46.03M	67.87M	368.44M	300.64M	270.92M
EBITDA	-6.09M	403.00K	21.58M	26.12M	-2.99M	5.25M
Net Income	-56.37M	-51.39M	3.69M	9.87M	-14.12M	1.27M
Balance Sheet
Total Assets	215.70M	208.71M	241.90M	235.23M	196.55M	144.68M
Cash, Cash Equivalents and Short-Term Investments	8.62M	15.19M	21.16M	21.19M	26.60M	28.90M
Total Debt	43.06M	36.95M	39.13M	45.25M	35.55M	32.61M
Total Liabilities	188.29M	177.24M	159.79M	157.01M	145.12M	112.82M
Stockholders Equity	27.41M	31.46M	80.00M	77.28M	52.91M	31.86M
Cash Flow
Free Cash Flow	-4.01M	8.97M	16.26M	5.67M	1.65M	12.74M
Operating Cash Flow	-3.57M	9.41M	19.09M	6.77M	3.78M	14.63M
Investing Cash Flow	-2.00M	-3.01M	-1.44M	-21.86M	-31.06M	-3.83M
Financing Cash Flow	-8.34M	-12.74M	-17.50M	9.35M	24.80M	-6.85M

Tempest Security AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TSEC, the sentiment is Positive. The current price of 14.15 is below the 20-day moving average (MA) of 14.19, above the 50-day MA of 12.21, and above the 200-day MA of 10.95, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 70.29 is Negative, neither overbought nor oversold. The STOCH value of 43.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:TSEC.

Tempest Security AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	€7.28B	13.20	35.20%	3.67%	2.14%	-121.84%
BONAS	58 Neutral	kr215.04M	147.09		―	5.27%	―
STWK	58 Neutral	kr136.32M	―		―	2.74%	75.54%
TSEC	54 Neutral	kr165.12M	―		―	6.25%	-1703.58%