Tempest Security AB (TSEC) AI Stock Analysis

• Market Cap: kr109.03M
• Dividend Yield: N/A
• Average Volume (3M): 6.95K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• Revenue Growth: 9.39%
• EPS Growth: -378.80%
• Country: SE
• Employees: 557
• Sector: Services
• Sector Strength: N/A
• Industry: Security & Protection Services
• EPS (TTM): 0.18
• Shares Outstanding: 10,483,549
• 10 Day Avg. Volume: 12,352
• 30 Day Avg. Volume: 6,949
• PEG Ratio: <0.01
• Price to Book (P/B): 3.47
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 12.17
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: kr13.50 ▲(3.85% Upside)

The overall stock score is primarily influenced by the mixed financial performance, with significant concerns about profitability and high leverage. Technical analysis shows strong bullish momentum, but valuation remains a concern due to negative earnings and lack of dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Tempest Security AB's products and services, suggesting a robust market position and potential for future expansion.

Product Diversification

A diverse product portfolio helps Tempest Security AB mitigate risks associated with market fluctuations and enhances its ability to capture various customer segments.

Government Contracts

Stable revenue from government contracts provides Tempest Security AB with a reliable income stream, supporting long-term financial stability and growth potential.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting Tempest Security AB's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Profitability Challenges

Ongoing profitability issues may hinder Tempest Security AB's ability to reinvest in the business, impacting long-term competitiveness and shareholder returns.

Cash Flow Decline

Declining cash flow limits Tempest Security AB's financial flexibility, affecting its capacity to fund operations, pay down debt, and pursue strategic initiatives.

Tempest Security AB Business Overview & Revenue Model

Company Description

Tempest Security AB (TSEC) is a leading provider of innovative security solutions specializing in cybersecurity, physical security, and risk management services. The company operates in various sectors including government, finance, healthcare, and critical infrastructure, offering a comprehensive suite of products such as advanced threat detection systems, surveillance technology, and incident response services. TSEC is committed to protecting its clients from evolving security threats through cutting-edge technology and expert consulting.

How the Company Makes Money

Tempest Security AB generates revenue through multiple streams, primarily by offering subscription-based services for its cybersecurity products, which include software licenses and ongoing support. Additionally, the company earns income from consulting services that help organizations assess their security posture and implement tailored solutions. TSEC also partners with other tech firms to provide integrated security solutions, which can lead to shared revenue opportunities. Furthermore, government contracts and large-scale enterprise agreements contribute significantly to its earnings, providing a steady income flow.

Tempest Security AB Financial Statement Overview

Summary

Tempest Security AB faces significant financial challenges, with high revenue growth overshadowed by profitability issues and high leverage. The company needs to address its operational inefficiencies and improve cash flow management to enhance financial stability and shareholder value.

Income Statement

The income statement shows significant volatility. While there is a strong revenue growth rate of 83.5% in the TTM, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has improved to 46.8% in the TTM, but the negative EBIT and EBITDA margins indicate operational challenges.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 2.99 in the TTM, indicating potential financial risk. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is relatively low, suggesting limited financial stability.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth, with a significant drop of 53.3% in the TTM. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. However, the free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	545.24M	485.63M	438.08M	424.33M	339.66M	299.69M
Gross Profit	138.68M	46.03M	401.33M	368.44M	300.64M	270.92M
EBITDA	-5.15M	403.00K	21.05M	26.12M	-2.99M	12.28M
Net Income	-54.42M	-51.39M	3.69M	9.87M	-12.58M	1.27M
Balance Sheet
Total Assets	212.33M	208.71M	241.90M	235.23M	196.55M	144.68M
Cash, Cash Equivalents and Short-Term Investments	11.88M	15.19M	21.16M	21.19M	26.60M	28.90M
Total Debt	45.35M	36.95M	39.13M	45.25M	35.55M	32.61M
Total Liabilities	192.39M	177.24M	159.79M	157.01M	145.12M	112.82M
Stockholders Equity	19.94M	31.46M	80.00M	77.28M	52.91M	31.86M
Cash Flow
Free Cash Flow	-5.01M	8.97M	16.26M	5.67M	1.65M	12.74M
Operating Cash Flow	-4.56M	9.41M	19.09M	6.77M	3.78M	14.63M
Investing Cash Flow	770.00K	-3.01M	-1.44M	-21.86M	-31.06M	-3.83M
Financing Cash Flow	-1.99M	-12.74M	-17.50M	9.35M	24.80M	-6.85M

Tempest Security AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.00
• 50DMA: Positive
• 100DMA: Negative
• 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:TSEC, the sentiment is Positive. The current price of 13 is above the 20-day moving average (MA) of 11.39, above the 50-day MA of 11.51, and above the 200-day MA of 11.47, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 63.50 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
FIRE	78 Outperform	kr1.19B	27.40	―	2.86%	-3.93%	-7.54%
SECU.B	69 Neutral	kr78.55B	14.07	13.13%	3.10%	-0.74%	6.55%
LOOMIS	66 Neutral	kr24.03B	13.81	14.28%	3.67%	2.58%	19.07%
CNCJO.B	57 Neutral	kr490.14M	19.79	4.07%	16.63%	-1.76%	59.61%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LEVEL	54 Neutral	€115.60M	-10.30	-1.58%	―	2.70%	85.94%
TSEC	52 Neutral	kr109.03M	-1.74	―	―	9.39%	-378.80%