Waystream Group AB (WAYS) AI Stock Analysis

• Market Cap: kr335.70M
• Dividend Yield: N/A
• Average Volume (3M): 8.07K
• Price to Earnings (P/E): 572.9
• Beta (1Y): 0.43
• Revenue Growth: 10.55%
• EPS Growth: N/A
• Country: SE
• Employees: 19
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.10
• Shares Outstanding: 8,069,763
• 10 Day Avg. Volume: 7,621
• 30 Day Avg. Volume: 8,071
• PEG Ratio: -0.17
• Price to Book (P/B): 4.49
• Price to Sales (P/S): 2.41
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: kr41.00 ▲(3.54% Upside)

The score is supported by a strong, low-debt balance sheet and an earnings rebound in 2025, but it is held back by inconsistent cash flow conversion and an extremely high P/E valuation. Technicals are mixed, with short-term weakness despite a still-favorable longer-term trend.

Positive Factors

Conservative balance sheet / very low debt

Near-zero reported debt and materially positive equity give Waystream long-term financial flexibility. This reduces refinancing and solvency risk, supports capex or product investment without reliance on external debt, and preserves the ability to withstand telecom spending cycles for 2–6 months and beyond.

Return to profitability and recent revenue growth

Rebounding from multi-year losses to positive net income alongside consecutive revenue increases indicates improving operational leverage and demand for products. Sustained revenue growth and restored profits make internal funding of operations and selective reinvestment more viable over coming quarters.

Focus on Ethernet access switches for telcos/ISPs

A clear, specialized product focus in carrier/municipal access networking aligns with structural industry trends like fiber rollouts and broadband expansion. Niche expertise supports competitive differentiation, recurring project demand, and stickier customer relationships with operators over multi-year network upgrade cycles.

Negative Factors

Inconsistent cash flow conversion

Material volatility in OCF and FCF suggests working-capital swings or reinvestment needs that can absorb operating profits. This inconsistent cash conversion constrains discretionary spending, increases reliance on careful cash management, and raises execution risk when scaling deployments or funding new product work.

Choppy earnings history and earnings quality risk

Frequent swings between profit and loss reduce predictability of margins and make strategic planning harder. For a vendor tied to telecom capex cycles, this cyclicality may reflect project timing or concentration risk, weakening confidence in sustained margin improvement and complicating multi-period forecasting.

Small organizational scale and limited diversification

A very small headcount and narrow product set limit R&D throughput, customer support scale, and geographic sales reach. This heightens dependency on a few large customers or projects, increases execution risk when competing against larger vendors, and can slow response to evolving standards.

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 and software solutions to telecommunications operators and service providers. The company's key revenue streams include the direct sales of its routers and switches, as well as recurring revenue from software licenses and maintenance contracts. Additionally, Waystream benefits from strategic partnerships with various telecommunications companies and technology firms that facilitate the integration of its products into larger network infrastructures. The growing demand for high-speed internet and the expansion of fiber optic networks contribute significantly to the company’s earnings, as service providers seek reliable solutions to meet increasing consumer data needs.

Waystream Group AB Financial Statement Overview

Summary

Profitability rebounded in 2025 (net income 10.3M on 136.9M revenue) after losses in 2023–2024, and revenue growth has been solid recently. The balance sheet is a major strength with near-zero debt versus 73.5M equity, but cash flow conversion has been volatile (negative OCF/FCF in 2023 and free cash flow reported as 0 in 2025 despite stronger operating cash flow).

Income Statement

The company returned to profitability in 2025 (annual) with net income of 10.3M on 136.9M of revenue, rebounding from losses in 2024 and 2023. Revenue growth has been solid recently (about +15% in 2024 and +10% in 2025), but the longer-term trajectory is choppy (sharp decline in 2023 after a very strong 2022). Profitability is therefore improving, but earnings quality still looks somewhat volatile given the swing from strong profits (2020–2022) to losses (2023–2024) and back to profits (2025).

Balance Sheet

The balance sheet looks conservatively financed with very low debt in 2025 (near-zero total debt of ~0.001M) versus 73.5M of equity, following already modest leverage in prior years (debt-to-equity around ~0.19–0.20 in 2023–2024 and very low in 2020–2022). Equity has grown versus 2024, supporting financial flexibility. The main weakness is that recent losses (2023–2024) pressured returns on equity, even though leverage is not a constraint.

Cash Flow

Cash generation has been inconsistent. Operating cash flow improved materially in 2024 (15.1M) and strengthened further in 2025 (37.6M), but 2023 saw negative operating cash flow (-18.0M) and deeply negative free cash flow (-29.0M). Free cash flow was positive in 2024 (3.9M) but is reported as 0 in 2025, suggesting reinvestment or working-capital swings may be absorbing cash despite higher operating inflows. Overall, cash flow momentum is positive, but variability remains a key risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	136.87M	115.15M	100.31M	140.34M	91.60M
Gross Profit	15.76M	53.75M	62.83M	87.34M	65.43M
EBITDA	24.16M	-5.76M	1.39M	27.47M	20.18M
Net Income	10.30M	-11.79M	-4.81M	20.56M	14.77M
Balance Sheet
Total Assets	147.15M	113.25M	128.59M	127.18M	78.40M
Cash, Cash Equivalents and Short-Term Investments	21.30M	5.07M	2.80M	27.21M	26.24M
Total Debt	1.00K	11.17M	12.84M	2.01M	1.99M
Total Liabilities	73.68M	56.26M	62.04M	51.78M	24.05M
Stockholders Equity	73.47M	56.98M	66.56M	75.40M	54.35M
Cash Flow
Free Cash Flow	0.00	3.91M	-29.02M	978.00K	17.62M
Operating Cash Flow	37.64M	15.09M	-17.99M	10.10M	27.00M
Investing Cash Flow	-15.54M	-11.18M	-11.02M	-9.12M	-9.39M
Financing Cash Flow	-5.92M	-1.67M	4.78M	-52.00K	740.00K

Waystream Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.60
• 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 39.6 is below the 20-day moving average (MA) of 40.96, above the 50-day MA of 39.19, and above the 200-day MA of 36.34, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 68.82 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
TAGM.B	71 Outperform	kr364.72M	15.07	8.23%	―	14.89%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAYS	60 Neutral	kr335.70M	572.89	―	―	10.55%	―
ALCA	57 Neutral	kr556.40M	18.06	―	―	-7.91%	-33.91%
MAVEN	44 Neutral	kr213.18M	-14.40	-5.81%	―	-9.79%	-144.24%
INCOAX	44 Neutral	kr70.88M	-2.14	-24.59%	―	-48.24%	-48.99%