Tempest Security AB (TSEC) AI Stock Analysis

• Market Cap: kr114.79M
• Dividend Yield: N/A
• Average Volume (3M): 7.05K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: 2.14%
• EPS Growth: -205444.83%
• Country: SE
• Employees: 557
• Sector: Services
• Sector Strength: N/A
• Industry: Security & Protection Services
• EPS (TTM): -0.89
• Shares Outstanding: 10,483,549
• 10 Day Avg. Volume: 12,318
• 30 Day Avg. Volume: 7,055
• 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: kr11.50
• Price Target Upside: 4.55% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: kr11.50 ▲(4.55% Upside)

The overall stock score is primarily impacted by significant financial challenges, including high leverage and profitability issues. Technical indicators suggest bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors contribute to a low overall score, indicating potential risks for investors.

Tempest Security AB Business Overview & Revenue Model

Company Description

Tempest Security AB (publ) provides security and protection solutions worldwide. The company offers personal security services, such as executive protection, travel security, and residential security; security investigations, including background checks, brand and IP investigations, due diligence and litigation investigations, and protective intelligence services; security consulting services comprising enterprise security risk consulting and crisis management, as well as risk, threat, and vulnerabilities assessments; and physical security services, such as guard services and event security, as well as designs and installs alarm and CCTV systems. It serves corporate, public sector, and high net worth clients. The company was founded in 2004 and is headquartered in Stockholm, Sweden.

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, marked by declining profitability and cash generation issues. While there are some strengths in gross profit margins, the overall financial health is concerning due to negative earnings and high leverage.

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	517.04M	485.63M	438.08M	424.33M	339.66M	299.69M
Gross Profit	242.08M	46.03M	401.33M	368.44M	300.64M	270.92M
EBITDA	-14.03M	403.00K	21.05M	26.12M	-2.99M	12.56M
Net Income	-62.49M	-51.39M	3.69M	9.87M	-12.58M	1.27M
Balance Sheet
Total Assets	228.76M	208.71M	241.90M	235.23M	196.55M	144.68M
Cash, Cash Equivalents and Short-Term Investments	9.00M	15.19M	21.16M	21.19M	26.60M	28.90M
Total Debt	55.41M	36.95M	39.13M	45.25M	35.55M	32.61M
Total Liabilities	210.25M	177.24M	159.79M	157.01M	145.12M	112.82M
Stockholders Equity	18.52M	31.46M	80.00M	77.28M	52.91M	31.86M
Cash Flow
Free Cash Flow	-1.87M	8.97M	16.26M	5.67M	1.65M	12.74M
Operating Cash Flow	-1.34M	9.41M	19.09M	6.77M	3.78M	14.63M
Investing Cash Flow	-562.00K	-3.01M	-1.44M	-21.86M	-31.06M	-3.83M
Financing Cash Flow	-5.04M	-12.74M	-17.50M	9.35M	24.80M	-6.85M

Tempest Security AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TSEC, the sentiment is Negative. The current price of 11 is below the 20-day moving average (MA) of 12.40, below the 50-day MA of 13.41, and below the 200-day MA of 11.34, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 25.18 is Positive, neither overbought nor oversold. The STOCH value of 9.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	kr1.09B	25.05	―	3.06%	-4.33%	-17.01%
CNCJO.B	72 Outperform	€570.85M	11.33	7.25%	14.34%	5.55%	368.20%
SECU.B	64 Neutral	kr80.24B	14.37	14.57%	2.95%	0.44%	267.96%
LOOMIS	60 Neutral	kr24.79B	14.73	13.99%	3.76%	2.91%	20.66%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LEVEL	49 Neutral	kr125.69M	―	-5.16%	―	-3.99%	33.17%
TSEC	39 Underperform	kr114.79M	―	―	―	2.14%	-205444.83%