Wise Group AB (WISE) AI Stock Analysis

• Market Cap: €98.67M
• Dividend Yield: N/A
• Average Volume (3M): 1.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: -20.88%
• EPS Growth: 14.14%
• Country: SE
• Employees: 397
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -0.67
• Shares Outstanding: 7,390,860
• 10 Day Avg. Volume: 1,013
• 30 Day Avg. Volume: 1,319
• PEG Ratio: -0.36
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 39.39
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: kr12.00 ▼(-7.34% Downside)

Wise Group AB's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and profitability. Technical analysis further indicates bearish momentum, with the stock trading below key moving averages and approaching oversold conditions. The negative P/E ratio and lack of dividend yield also weigh heavily on the valuation score.

Positive Factors

Recurring Revenue Model

Recurring revenue from subscriptions provides a stable income stream, enhancing financial predictability and long-term business sustainability.

Strategic Partnerships

Partnerships expand market access and service offerings, leveraging complementary strengths to drive growth and competitive advantage.

Cash Flow Improvements

Improving free cash flow indicates better cash management, enhancing the company's ability to invest in growth and reduce debt.

Negative Factors

Declining Revenue

Consistent revenue decline reflects challenges in market demand or competitiveness, potentially impacting long-term growth prospects.

Growing Debt Reliance

Increased debt reliance can strain financial flexibility, limiting the company's ability to invest in new opportunities or weather downturns.

Negative Profitability

Negative profitability indicates operational inefficiencies, which could hinder investment in innovation and market expansion.

Wise Group AB Business Overview & Revenue Model

Company Description

Wise Group AB (WISE) is a Swedish company that specializes in providing innovative solutions in the fields of digital transformation, software development, and IT consulting. The company operates primarily in the technology sector, offering a range of services designed to enhance business efficiency and competitiveness. Core products include custom software development, cloud solutions, and digital strategy consulting, catering to various industries such as finance, healthcare, and retail.

How the Company Makes Money

Wise Group AB generates revenue through multiple streams, primarily from project-based consulting services, where they charge clients for custom software development and IT advisory services. Additionally, the company earns income through recurring revenue models, such as subscription fees for cloud-based solutions and ongoing support services. Strategic partnerships with technology providers and industry leaders also contribute to their earnings by providing access to new markets and enhancing service offerings. These collaborations enable Wise Group AB to leverage complementary strengths and expand their client base, ultimately driving revenue growth.

Wise Group AB Financial Statement Overview

Summary

Wise Group AB faces challenges with declining revenues and profitability, as evidenced by negative net income and EBIT in recent years. The balance sheet reveals growing debt reliance, while cash flow remains volatile but shows signs of stabilization. Future improvements in revenue and cost control are crucial for financial health recovery.

Income Statement

Wise Group AB has experienced a decline in revenue over the past few years, with a notable drop from 2020 to 2023. Gross profit margins have been inconsistent, and the company has reported negative EBIT and net income in recent periods, indicating operational challenges. Despite these issues, EBITDA margins suggest some capacity for positive cash flow generation.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the decline in stockholders' equity over the past years raises concerns about the company's financial health. The equity ratio has also decreased, suggesting an increased reliance on debt financing.

Cash Flow

Cash flow analysis reveals volatility, with free cash flow fluctuating significantly. While operating cash flow remains positive, the conversion of operating cash flow to net income is inconsistent, reflecting challenges in sustaining profitability. Recent improvements in free cash flow suggest potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	530.78M	630.63M	803.10M	910.46M	744.59M	686.26M
Gross Profit	218.35M	264.18M	315.38M	412.93M	340.71M	273.83M
EBITDA	3.58M	7.53M	9.58M	68.89M	100.09M	3.85M
Net Income	-19.89M	-19.15M	-16.19M	19.14M	41.37M	-2.17M
Balance Sheet
Total Assets	190.87M	237.76M	306.30M	409.88M	404.27M	412.09M
Cash, Cash Equivalents and Short-Term Investments	20.75M	36.91M	53.70M	104.03M	114.28M	41.37M
Total Debt	49.71M	61.30M	71.38M	104.75M	95.25M	122.34M
Total Liabilities	136.40M	169.25M	219.42M	277.22M	262.55M	311.84M
Stockholders Equity	54.47M	68.50M	86.87M	132.66M	141.72M	100.25M
Cash Flow
Free Cash Flow	12.21M	3.19M	-7.00K	49.49M	19.59M	40.89M
Operating Cash Flow	1.81M	3.19M	924.00K	57.59M	21.83M	60.43M
Investing Cash Flow	-1.30M	252.00K	-586.00K	-8.33M	83.38M	-17.19M
Financing Cash Flow	-14.61M	-20.37M	-51.24M	-61.17M	-32.49M	-7.42M

Wise Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:WISE, the sentiment is Negative. The current price of 12.95 is below the 20-day moving average (MA) of 13.19, below the 50-day MA of 13.79, and below the 200-day MA of 16.30, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 44.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:WISE.

Wise Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEDI	74 Outperform	kr430.32M	10.73	―	5.79%	-17.43%	-39.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HEGR	46 Neutral	€23.41M	―	-8.40%	―	-11.42%	-116.40%
WISE	45 Neutral	€98.67M	-4.28	-29.57%	―	-20.88%	14.14%
PION.B	44 Neutral	€269.78M	-5.46	-18.85%	―	-17.32%	36.05%