Safeguard Scientifics (SFES) AI Stock Analysis

• Market Cap: $12.38M
• Dividend Yield: N/A
• Average Volume (3M): 24.47K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: N/A
• EPS Growth: 12.57%
• Country: US
• Employees: 33
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.62
• Shares Outstanding: 16,722,994
• 10 Day Avg. Volume: 67,574
• 30 Day Avg. Volume: 24,469
• PEG Ratio: -0.84
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.81
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 42 Neutral
• Price Target: ―

The overall score is primarily impacted by the weak financial performance, characterized by a lack of revenue and profitability, and negative cash flow. Technical analysis provides some positive momentum, but the near-overbought indicators suggest caution. Valuation remains unattractive due to negative earnings and no dividend yield.

Positive Factors

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to potentially invest in opportunities without the burden of high debt.

Strategic Partnerships

Strong partnerships enhance the company's ability to source and scale investments, supporting long-term growth and value creation in its portfolio.

Industry Focus

Focusing on high-growth sectors like healthcare and digital media positions the company to benefit from sector-specific trends and innovations.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates poor cash generation, which can limit the company's ability to invest in growth opportunities and meet financial obligations.

Lack of Revenue

The absence of revenue highlights challenges in monetizing investments, which can hinder the company's ability to achieve profitability and sustain operations.

Declining Equity

Shrinking equity base may indicate underlying financial instability, reducing the company's capacity to absorb losses and invest in future growth.

Safeguard Scientifics Business Overview & Revenue Model

Company Description

Safeguard Scientifics, Inc. (SFES) is an American private equity and venture capital firm that specializes in growth-stage and early-stage investments. The company focuses on partnering with entrepreneurs in the healthcare, financial services, and digital media sectors, providing them with the capital and operational expertise needed to scale their businesses. Safeguard Scientifics aims to create value by offering strategic guidance and support to its portfolio companies, helping them navigate complex market dynamics and achieve sustainable growth.

How the Company Makes Money

Safeguard Scientifics makes money primarily through the capital appreciation of its investments in portfolio companies. The company's revenue model involves acquiring equity stakes in healthcare, financial services, and digital media companies, and then working closely with these businesses to enhance their value. Safeguard's earnings are realized through exits, such as mergers, acquisitions, or public offerings, where they sell their equity stakes at a profit. Additionally, the company may earn revenue from management fees associated with its investment activities. Significant partnerships with entrepreneurs and other investors contribute to its ability to identify promising investment opportunities and optimize the growth potential of its portfolio.

Safeguard Scientifics Financial Statement Overview

Summary

Safeguard Scientifics is facing significant challenges across all financial verticals. The lack of revenue and profitability is a major concern, as reflected in the negative income statement metrics. While the balance sheet shows low leverage, diminishing equity and assets raise stability concerns. The cash flow statement highlights cash generation issues, with consistent negative free cash flow. Overall, the financial health appears to be weak, with critical areas needing strategic improvement.

Income Statement

The company has consistently had zero revenue over the years, leading to negative gross profit, EBIT, and EBITDA. The net income has also been negative, indicating a lack of profitability. Revenue growth is non-existent due to the absence of revenue, resulting in poor overall performance on the income statement.

Balance Sheet

The company has maintained a relatively low debt-to-equity ratio over the years, indicating low leverage. However, the continuous decline in stockholders' equity suggests potential risks. The equity ratio is relatively healthy, but the declining asset base and shrinking equity are concerning.

Cash Flow

There is a consistent negative free cash flow, and the operating cash flow has been negative across all reported years, reflecting poor cash generation capabilities. The lack of free cash flow growth and negative operating cash flow to net income ratios indicate cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-374.00K	-319.00K	-271.00K	-229.00K	-311.00K
EBITDA	-10.01M	-9.51M	-13.99M	27.23M	-37.30M
Net Income	-10.38M	-9.83M	-14.26M	27.00M	-37.62M
Balance Sheet
Total Assets	11.30M	22.84M	37.69M	54.03M	69.03M
Cash, Cash Equivalents and Short-Term Investments	6.82M	9.50M	20.17M	29.29M	15.60M
Total Debt	760.00K	1.25M	1.68M	2.05M	2.38M
Total Liabilities	1.48M	2.86M	3.12M	3.46M	6.16M
Stockholders Equity	9.83M	19.98M	34.58M	50.57M	62.88M
Cash Flow
Free Cash Flow	-2.98M	-3.31M	-3.26M	-8.15M	-8.14M
Operating Cash Flow	-2.98M	-3.31M	-3.26M	-8.15M	-8.14M
Investing Cash Flow	285.00K	5.72M	-4.66M	58.11M	-1.27M
Financing Cash Flow	-9.00K	-6.25M	-3.49M	-40.80M	-40.00K

Safeguard Scientifics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.74
• 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 SFES, the sentiment is Negative. The current price of 0.74 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.87, and below the 200-day MA of 0.83, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 35.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFES.

Safeguard Scientifics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MLCI	56 Neutral	$6.71M	-7.80	-25.88%	1.07%	66.65%	-1497.99%
MAAS	49 Neutral	$1.12B	>-0.01	―	―	2195.36%	-35.59%
SFES	42 Neutral	$12.38M	―	-47.44%	―	―	12.57%
CWD	42 Neutral	$13.49M	-0.15	-1438.14%	―	-62.09%	-99.89%
BTTC	34 Underperform	$4.24M	-1.08	-82.72%	―	-100.00%	54.46%