Waystream Group AB (WAYS) AI Stock Analysis

• Market Cap: kr334.09M
• Dividend Yield: N/A
• Average Volume (3M): 11.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: 4.90%
• EPS Growth: 1.80%
• Country: SE
• Employees: 19
• Sector: Technology
• Sector Strength: 86
• Industry: Communication Equipment
• EPS (TTM): 0.40
• Shares Outstanding: 8,069,763
• 10 Day Avg. Volume: 7,405
• 30 Day Avg. Volume: 11,651
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr43.00
• Price Target Upside: 7.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: kr43.00 ▲(7.77% Upside)

Waystream Group AB's overall stock score reflects moderate financial stability and strong technical momentum, but is significantly impacted by poor profitability and valuation issues. The positive technical indicators suggest potential short-term gains, yet the overbought signals caution against sustained price growth without improved financial performance.

Waystream Group AB Business Overview & Revenue Model

Company Description

Waystream Holding AB (publ) provides routers and switches that are used in the field of high-speed broadband service networks in Sweden. The company offers ASR 8000, MS 8000, and MS 7000, a hybrid architecture access switches for Internet, TV, wholesale capacity services, and private networks; and optical SFP and SFP+ modules accessories for telecom operators, service providers, and city networks that are used in optical connection and passive coaxial cables. It also provides technical support, training, and professional services. In addition, the company offers IPTV monitoring, point-to-point technology, and ZeroTouch automation solutions. The company was founded in 2001 and is headquartered in Kista, Sweden.

How the Company Makes Money

Waystream Group AB generates revenue through the sale of its networking hardware products, such as switches and routers, to internet service providers (ISPs), data centers, and enterprises. These products are critical components for building and maintaining fiber optic networks, which are increasingly in demand as the need for high-speed internet grows globally. Additionally, the company may also earn revenue through service contracts, including maintenance and support agreements, ensuring ongoing product performance and customer satisfaction. Key partnerships with telecommunications companies and technology distributors further enhance its market reach and revenue potential.

Waystream Group AB Financial Statement Overview

Summary

Waystream Group AB is facing profitability challenges, with negative EBIT and net income margins despite slight revenue growth. The balance sheet is moderately stable with low leverage, yet the declining equity ratio is concerning. Cash flow management is strong, particularly in operating cash flow generation, but inconsistencies in free cash flow growth and investing/financing cash flows suggest potential instability.

Income Statement

Waystream Group AB has experienced fluctuations in its financial performance. The gross profit margin has decreased from previous years, indicating potential challenges in managing cost of sales. Additionally, the company reported negative EBIT and net income margins in recent periods, reflecting profitability issues. However, there is a slight positive revenue growth of 1.91% from 2024 to TTM (Trailing-Twelve-Months), suggesting some potential for recovery.

Balance Sheet

The balance sheet shows a moderate level of financial stability. The debt-to-equity ratio remains low, indicating conservative leverage and manageable debt levels. However, the company's equity ratio has decreased slightly over time, suggesting increased liabilities relative to assets. Return on Equity (ROE) is negative in recent periods due to negative net income, indicating a challenge in generating shareholder returns.

Cash Flow

The company has shown positive trends in cash flows, with a significant increase in free cash flow from previous periods. The operating cash flow to net income ratio is strong, reflecting effective cash generation from operations despite reported losses. However, the free cash flow growth rate is not consistent, and there are fluctuations in investing and financing cash flows, indicating potential instability in cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.36M	115.15M	100.31M	140.34M	91.60M	86.36M
Gross Profit	60.23M	53.75M	62.83M	87.34M	65.43M	55.15M
EBITDA	1.80M	-5.76M	1.39M	27.47M	20.18M	16.31M
Net Income	-6.04M	-11.79M	-4.81M	20.56M	14.77M	11.67M
Balance Sheet
Total Assets	119.30M	113.25M	128.59M	127.18M	78.40M	54.57M
Cash, Cash Equivalents and Short-Term Investments	16.87M	5.07M	2.80M	27.21M	26.24M	7.68M
Total Debt	12.25M	11.17M	12.84M	2.01M	1.99M	1.75M
Total Liabilities	58.23M	56.26M	62.04M	51.78M	24.05M	15.82M
Stockholders Equity	61.07M	56.98M	66.56M	75.40M	54.35M	38.75M
Cash Flow
Free Cash Flow	29.40M	15.09M	-29.02M	978.00K	17.62M	7.25M
Operating Cash Flow	29.40M	15.09M	-17.99M	10.10M	27.00M	11.18M
Investing Cash Flow	-12.87M	-11.18M	-11.02M	-9.12M	-9.39M	-3.93M
Financing Cash Flow	-9.41M	-1.67M	4.78M	-52.00K	740.00K	-5.30M

Waystream Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:WAYS, the sentiment is Positive. The current price of 39.9 is above the 20-day moving average (MA) of 39.69, above the 50-day MA of 38.84, and above the 200-day MA of 25.36, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 52.15 is Neutral, neither overbought nor oversold. The STOCH value of 67.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:WAYS.

Waystream Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$36.05B	6.66	-10.10%	1.86%	8.68%	-8.81%
WAYS	55 Neutral	kr334.09M	―		―	4.90%	1.80%
2I40	―	€22.31M	39.59	2.31%	―	―	―
96W	―	€43.29M	1,870.00	-6.07%	―	―	―
86M	―	€12.07M	―	-23.90%	―	―	―
8580	―	€783.73K	―	-243.02%	―	―	―
ALCA	63 Neutral	kr497.57M	17.88		―	-4.69%	-51.82%