Nera Telecommunications Ltd (N01) AI Stock Analysis

• Market Cap: S$43.79M
• Dividend Yield: 4.13%
• Average Volume (3M): 110.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -11.99%
• EPS Growth: -2666.67%
• Country: SG
• Employees: 294
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): >-0.01
• Shares Outstanding: 361,897,000
• 10 Day Avg. Volume: 100,070
• 30 Day Avg. Volume: 110,156
• PEG Ratio: 0.08
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -158.64
• 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: 62 Neutral
• Price Target: S$0.00 ▼(-100.00% Downside)

The overall stock score of 62 reflects a mixed outlook for Nera Telecommunications Ltd. The most significant factor is the company's financial performance, which shows challenges in profitability and revenue growth, despite stable leverage and strong free cash flow growth. Technical analysis indicates positive momentum, but caution is advised due to potential overbought conditions. The valuation is mixed, with a negative P/E ratio offset by a high dividend yield.

Nera Telecommunications Ltd Business Overview & Revenue Model

Company Description

Nera Telecommunications Ltd (N01) is a leading provider of telecommunications solutions, specializing in the design, development, and deployment of advanced communication systems. The company operates in various sectors, including satellite communications, broadband services, and network infrastructure. Nera's core products encompass satellite terminals, network management software, and end-to-end communication systems that cater to both commercial and governmental clients, enhancing connectivity in remote and urban areas alike.

How the Company Makes Money

Nera Telecommunications generates revenue primarily through the sale of telecommunications equipment and services, including satellite terminals and network infrastructure solutions. The company also earns income from the provision of maintenance and support services for its products. Additionally, Nera engages in project-based contracts, where it collaborates with partners and clients on custom solutions, further diversifying its revenue streams. Strategic partnerships with major telecommunications companies and government entities enhance its market reach and contribute significantly to its earnings, allowing Nera to tap into larger projects and gain access to new market segments.

Nera Telecommunications Ltd Financial Statement Overview

Summary

Nera Telecommunications Ltd faces challenges in revenue growth and profitability, as reflected in the income statement. The balance sheet remains stable with low leverage, but profitability needs improvement. Cash flow management shows positive signs with strong free cash flow growth, although operational cash conversion remains a concern. Overall, the company needs to focus on enhancing revenue and profitability to improve its financial health.

Income Statement

Nera Telecommunications Ltd has experienced declining revenue and profitability over the TTM period. The gross profit margin has decreased to 21.5% from 24.8% in the previous year, and the net profit margin has turned negative at -6.3%. Revenue growth is negative, indicating a contraction in sales. The company is facing challenges in maintaining operational efficiency, as evidenced by negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.12 in the TTM, indicating manageable leverage. However, the return on equity is negative at -14.6%, reflecting poor profitability. The equity ratio is stable, suggesting a solid capital structure, but the company needs to improve its profitability to enhance shareholder value.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow growth at 137.7% in the TTM, indicating better cash management. The operating cash flow to net income ratio is low, suggesting challenges in converting earnings into cash. However, the free cash flow to net income ratio is strong at 94.6%, highlighting efficient cash generation relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	95.62M	98.25M	141.69M	132.53M	102.61M	131.12M
Gross Profit	20.56M	24.41M	31.24M	29.58M	19.52M	29.83M
EBITDA	-4.04M	-1.07M	7.66M	-2.31M	-12.70M	6.97M
Net Income	-5.99M	-2.81M	5.67M	-7.29M	-15.99M	2.95M
Balance Sheet
Total Assets	101.45M	110.45M	126.83M	152.41M	152.03M	162.35M
Cash, Cash Equivalents and Short-Term Investments	10.21M	14.30M	20.62M	18.20M	23.50M	23.12M
Total Debt	4.96M	14.51M	17.95M	26.94M	33.22M	32.79M
Total Liabilities	61.02M	68.54M	80.25M	111.34M	105.49M	96.09M
Stockholders Equity	40.44M	41.91M	46.58M	41.06M	46.54M	64.14M
Cash Flow
Free Cash Flow	1.38M	-219.00K	6.56M	7.11M	-1.06M	760.00K
Operating Cash Flow	1.46M	59.00K	7.91M	7.64M	-514.00K	3.13M
Investing Cash Flow	194.00K	96.00K	5.14M	-89.00K	898.00K	-2.12M
Financing Cash Flow	-6.46M	-6.68M	-9.97M	-12.11M	640.00K	9.18M

Nera Telecommunications Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:N01, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 71.68 is Negative, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:N01.

Nera Telecommunications Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIX	63 Neutral	S$45.83M	35.26	2.00%	21.43%	4.89%	―
N01	62 Neutral	S$43.79M	―	-13.95%	4.13%	-11.99%	-2666.67%
Y3D	62 Neutral	S$49.03M	8.75	5.07%	―	-6.98%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
A31	61 Neutral	S$147.57M	31.43	40.64%	―	31.67%	250.00%