Nera Telecommunications Ltd (N01) AI Stock Analysis

• Market Cap: S$70.21M
• Dividend Yield: N/A
• Average Volume (3M): 84.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• 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: 124,490
• 30 Day Avg. Volume: 84,796
• PEG Ratio: -2.51
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 11.97
• 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: 58 Neutral
• Price Target: S$0.18 ▲(40.77% Upside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is primarily supported by improving balance sheet risk and a sharp rebound to positive operating/free cash flow in 2025, with additional support from a constructive technical trend. Offsetting these positives, the company remains loss-making with weakened margins and a negative P/E, which keeps the overall score below average.

Positive Factors

Improving leverage and balance-sheet de-risking

Lower debt-to-equity (~0.29 in 2025) and a stronger equity base materially reduce solvency risk and increase financial flexibility. This durable improvement supports capital allocation for investment or cyclical downturns, lowering refinancing pressure and improving credit resilience over months.

Turnaround to positive operating and free cash flow

A move to positive operating and free cash flow in 2025 signals the business can internally fund operations and modest investment without new external financing. Sustained cash generation enhances durability, enabling reinvestment, deleveraging, or buffer against future volatility over the next several quarters.

Revenue stabilization and operating profit improvement

Stabilizing revenue growth and the return of slight operating profitability suggest improved execution or demand stability. If sustained, this supports margin rebuilding and operational leverage, creating a clearer path to consistent positive earnings over the medium term.

Negative Factors

Persistent net losses and negative returns

Continued net losses and negative ROE indicate the firm is not yet converting capital into shareholder returns. This reduces retained earnings, limits reinvestment capacity, and raises the bar for management to deliver sustained profitability and justify capital deployment over coming quarters.

Meaningful gross margin deterioration

Declining gross margins erode the company's ability to translate revenue into profit even if sales stabilize. Persistent margin pressure points to cost, pricing, or product-mix challenges that can constrain durable earnings recovery and require structural responses to restore long-term profitability.

Volatile earnings and cash flow history

High year-to-year volatility in profits and cash flow undermines predictability and raises execution risk. Irregular performance complicates planning, increases the need for higher liquidity buffers, and makes sustainable forecasting and investor confidence harder to achieve over the medium term.

Nera Telecommunications Ltd Business Overview & Revenue Model

Company Description

Nera Telecommunications Ltd designs, engineers, distributes, sells, services, installs, and maintains telecommunication systems and products in transmission networks and satellite communications and information technology networks. It operates through two segments, Wireless Infrastructure Networks (WIN) and Network Infrastructure (NI). The WIN segment provides microwave radios; radio access network, such as small cell solutions, in-building solutions, network optimization, and other RF services; and wireless fidelity services. This segment also offers professional services, including wireless network design and implementation, project management professional services, and it and network consultancy services. The NI segment offers IP Solutions comprising CPE / vCPE, metro ethernet aggregation, residential and business edge, data center edge DCI, converged edge / core, and edge / core core, as well as project coordination, installation, testing and commissioning, training, and after-sales technical support services; technology driven and carrier grade optical network platform solutions, consisting of metro DWDM, long haul DWDM, legacy PCM, SDH, packet, IP and FTTx, data center interconnect, mobile and mobile fronthaul, and FFTx Solutions; private and hybrid cloud solutions; and network security solutions, such as firewalls, DDoS, malware solution, DNS security, public-key infrastructure, forward and reverse proxy, deep packet inspection, and vulnerability management and penetration test solutions. It operates in Singapore, Malaysia, the Philippines, Indonesia, Thailand, Australia, Pakistan, Morocco, Europe, the Middle East, Africa, and internationally. The company was incorporated in 1978 and is headquartered in Singapore.

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

Balance sheet and cash flow are supportive (deleveraging with debt-to-equity ~0.29; 2025 operating cash flow and free cash flow turned solidly positive), but profitability and earnings durability remain weak with a net loss and meaningful margin pressure in 2025 following volatile results across years.

Income Statement

Revenue stabilized in 2025 (annual +4.78% after a sharp decline in 2024), but profitability remains weak. Gross margin fell meaningfully in 2025 versus 2024, and while operating profit turned slightly positive in 2025 after operating losses in 2024, the company still reported a net loss. Results over the period are volatile (profits in 2020 and 2023, losses in 2021–2022 and 2024–2025), suggesting inconsistent execution and limited earnings durability.

Balance Sheet

Leverage looks manageable with debt-to-equity improving to ~0.29 in 2025 from higher levels earlier in the period, indicating balance sheet de-risking. Equity remains substantial relative to debt, supporting financial flexibility. The key weakness is returns: return on equity is negative in 2024–2025, reflecting that the capital base is not currently generating profits, despite the healthier leverage profile.

Cash Flow

Cash generation improved sharply in 2025 with positive operating cash flow (~4.1M) and positive free cash flow (~4.0M) after weak/negative free cash flow in 2024. Free cash flow growth in 2025 is very strong off a low base, and cash conversion looks better than earnings given net losses. The main risk is consistency: 2024 operating cash flow was minimal and free cash flow was negative, highlighting meaningful year-to-year volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	95.62M	100.19M	98.25M	141.69M	132.53M	102.61M
Gross Profit	20.56M	17.83M	24.41M	31.24M	29.58M	19.52M
EBITDA	-4.04M	3.25M	-1.07M	7.66M	-2.31M	-12.70M
Net Income	-5.99M	-2.99M	-2.81M	5.67M	-7.29M	-15.99M
Balance Sheet
Total Assets	101.45M	101.54M	110.45M	126.83M	152.41M	152.03M
Cash, Cash Equivalents and Short-Term Investments	10.21M	10.18M	14.30M	20.62M	18.20M	23.50M
Total Debt	4.96M	11.20M	14.51M	17.95M	26.94M	33.22M
Total Liabilities	61.02M	62.81M	68.54M	80.25M	111.34M	105.49M
Stockholders Equity	40.44M	38.73M	41.91M	46.58M	41.06M	46.54M
Cash Flow
Free Cash Flow	1.38M	4.02M	-219.00K	6.56M	7.11M	-1.06M
Operating Cash Flow	1.46M	4.06M	59.00K	7.91M	7.64M	-514.00K
Investing Cash Flow	194.00K	-96.00K	96.00K	5.14M	-89.00K	898.00K
Financing Cash Flow	-6.46M	-8.09M	-6.68M	-9.97M	-12.11M	640.00K

Nera Telecommunications Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 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 SG:N01, the sentiment is Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.16, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 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
Y3D	69 Neutral	S$53.41M	-67.78	5.07%	4.10%	-6.98%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
N01	58 Neutral	S$70.21M	-23.37	-13.95%	―	-11.99%	-2666.67%
A31	57 Neutral	S$335.19M	65.00	40.64%	―	31.67%	250.00%
BIX	54 Neutral	S$40.83M	54.44	2.00%	26.09%	4.89%	―

Nera Telecommunications Ltd Corporate Events

Nera Telecommunications Wins S$2.4 Million Cybersecurity Support Contract

Nera Telecommunications Ltd has secured a three-year contract worth about S$2.4 million from an established institutional asset management group to provide technical management and operational support for cybersecurity. The mandate includes 24/7 Security Information and Event Management monitoring, Security Operations Centre support, and security operations platform management, strengthening the Group’s push into managed services and enhancing its cybersecurity offerings while contributing positively to its current financial year performance.

The contract underscores Nera Telecommunications’ strategy to deepen its cyber defence competencies and position itself as a provider of integrated, mission-critical IT and security solutions. By winning work from a financial sector client, the Group reinforces its credibility in high-stakes environments and signals potential for further growth in recurring cybersecurity service revenue, which could bolster its competitive standing in the regional telecoms and IT services market.

The most recent analyst rating on (SG:N01) stock is a Hold with a S$0.19 price target. To see the full list of analyst forecasts on Nera Telecommunications Ltd stock, see the SG:N01 Stock Forecast page.

Nera Telecommunications Wins Over S$15 Million in Southeast Asian Smart Services Contracts

Nera Telecommunications has secured a frame contract renewal and additional variation orders from two major Southeast Asian service providers, with a combined value exceeding S$15 million, to deliver smart services training and deploy trained personnel across roughly 200 rural sites. The multi-year agreements include 12‑ to 60‑month managed services and Network Operations Centre support for operations, maintenance and network performance monitoring, and are expected to boost the Group’s financial performance this year while reinforcing its role in enabling digital commerce and economic development in underserved communities.

The most recent analyst rating on (SG:N01) stock is a Hold with a S$0.19 price target. To see the full list of analyst forecasts on Nera Telecommunications Ltd stock, see the SG:N01 Stock Forecast page.