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: 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: 12,352
• 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: 38 Underperform
• Price Target: kr10.50 ▲(6.49% Upside)

The overall stock score is primarily impacted by significant financial challenges, including high leverage and profitability issues. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield.

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, 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	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: 9.86
• 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 9.86 is below the 20-day moving average (MA) of 10.72, below the 50-day MA of 12.22, and below the 200-day MA of 11.34, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 22.32 is Positive, neither overbought nor oversold. The STOCH value of 7.75 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	78 Outperform	kr1.19B	27.40	―	2.76%	-4.33%	-17.01%
CNCJO.B	71 Outperform	kr566.17M	11.31	7.25%	14.46%	5.55%	368.20%
SECU.B	69 Neutral	kr78.55B	14.07	13.13%	2.88%	-0.74%	6.55%
LOOMIS	62 Neutral	kr24.03B	13.81	14.28%	3.87%	2.58%	19.07%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LEVEL	54 Neutral	€115.60M	-10.30	-5.16%	―	-3.99%	33.17%
TSEC	38 Underperform	kr109.03M	-1.74	―	―	2.14%	-205444.83%