Senstar Technologies (SNT) AI Stock Analysis

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Senstar Technologies

(NASDAQ:SNT)

66Neutral

Senstar Technologies' recent earnings call showed significant improvement in revenue, margins, and net income, contributing positively to the stock score. However, challenges in financial performance, primarily due to declining revenues and profitability issues, offset this. The technical analysis suggests strong momentum, while the high P/E ratio raises concerns about valuation. Overall, the stock shows potential for growth, but risks remain due to operational inefficiencies and valuation concerns.

Senstar Technologies (SNT) vs. S&P 500 (SPY)

Market Cap

$72.26M

Dividend YieldN/A

Average Volume (3M)22.24K

Price to Earnings (P/E)65.3

Beta (1Y)0.69

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees136

SectorIndustrials

Sector Strength70

IndustrySecurity & Protection Services

Share Statistics

EPS (TTM)0.05

Shares Outstanding23,309,986

10 Day Avg. Volume22,670

30 Day Avg. Volume22,241

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)2.45

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Senstar Technologies Business Overview & Revenue Model

Company DescriptionSenstar Technologies (SNT) is a global leader in providing innovative security solutions for critical infrastructure protection. The company operates in the security and surveillance sectors, offering a comprehensive suite of products including perimeter intrusion detection systems, video management software, and video analytics solutions. Senstar Technologies serves a diverse range of industries, including transportation, utilities, oil and gas, and government facilities, ensuring the safety and security of high-risk environments worldwide.

How the Company Makes MoneySenstar Technologies generates revenue primarily through the sale of its security products and solutions. The company's key revenue streams include the direct sale of perimeter intrusion detection systems, video management software, and video analytics services. In addition to product sales, Senstar Technologies may also earn income from maintenance contracts, software licensing, and professional services, such as installation and system integration. Significant partnerships with global system integrators and distributors also contribute to its earnings, enabling broader market reach and enhanced service delivery. The company's focus on innovation and customer-centric solutions helps maintain its competitive edge and drive revenue growth in the security technology landscape.

Senstar Technologies Financial Statement Overview

Summary

Senstar Technologies faces challenges with declining revenues and profitability, indicated by negative net profit and EBIT margins. Despite a solid balance sheet with low leverage and high equity, cash flow improvements are offset by continued negative free cash flow, signaling operational inefficiencies.

Income Statement

Negative

Senstar Technologies has experienced a decline in total revenue from $35.56 million in 2022 to $32.79 million in 2023, resulting in a revenue growth rate of -7.71%. The gross profit margin in 2023 stands at 57.49%, but the company has seen a negative net profit margin of -3.93% due to a net income loss. Additionally, both EBIT and EBITDA margins are negative, indicating challenges in operational efficiency.

Balance Sheet

Positive

The company maintains a strong equity position with an equity ratio of 73.98% in 2023, suggesting financial stability. The debt-to-equity ratio is low at 0.024, indicating low leverage. However, the return on equity is negative at -3.47% due to net losses, which is a concern for profitability.

Cash Flow

Neutral

Senstar Technologies has shown improvement in operating cash flow, which turned positive in 2023 to $260,000 from a negative $9.52 million in 2022. However, free cash flow remains negative, and the free cash flow to net income ratio is not favorable due to the net loss.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
34.45M	32.79M	35.56M	34.92M	81.27M	86.83M
	Gross Profit
21.38M	18.85M	21.50M	21.98M	34.56M	38.76M
	EBIT
2.68M	-1.26M	54.00K	-788.00K	3.40M	3.94M
	EBITDA
3.00M	-255.00K	3.06M	1.94M	3.99M	6.47M
	Net Income Common Stockholders
1.47M	-1.29M	3.83M	-2.19M	902.00K	2.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
43.93M	14.92M	15.05M	26.40M	27.09M	51.28M
	Total Assets
91.04M	50.27M	51.89M	59.39M	107.98M	127.05M
	Total Debt
5.40M	877.00K	1.00M	1.25M	3.35M	3.43M
	Net Debt
-34.07M	-13.93M	-13.93M	-25.15M	-23.74M	-31.10M
	Total Liabilities
32.71M	13.07M	14.20M	23.63M	40.67M	39.24M
	Stockholders Equity
58.33M	37.19M	37.69M	35.76M	67.31M	87.78M
Cash Flow		Free Cash Flow
0.00	-120.00K	-9.67M	5.07M	1.44M	-6.19M
	Operating Cash Flow
0.00	260.00K	-9.52M	6.03M	2.32M	-4.52M
	Investing Cash Flow
0.00	-334.00K	-237.00K	31.73M	16.22M	-4.78M
	Financing Cash Flow
0.00	-213.00K	19.00K	-39.68M	-28.79M	178.00K

Senstar Technologies Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.10

Price Trends

50DMA

3.46

Negative

100DMA

3.37

Negative

200DMA

2.51

Positive

Market Momentum

MACD

-0.13

Positive

RSI

43.52

Neutral

STOCH

59.85

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNT, the sentiment is Negative. The current price of 3.1 is below the 20-day moving average (MA) of 3.28, below the 50-day MA of 3.46, and above the 200-day MA of 2.51, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 59.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNT.

Senstar Technologies Risk Analysis

Senstar Technologies disclosed 35 risk factors in its most recent earnings report. Senstar Technologies reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Senstar Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSIS	75 Outperform	$3.18B	24.37	16.85%	―	20.69%	17.89%
SNT	66 Neutral	$72.26M	65.29	-3.47%	―	―	―
ICFI	66 Neutral	$1.53B	14.28	11.60%	0.67%	2.88%	33.76%
Sector *	62 Neutral	$7.70B	13.14	3.53%	3.32%	3.90%	-14.25%
AVAV	58 Neutral	$4.13B	125.18	3.94%	―	5.21%	―

* Industrials Sector Average

Performance Comparison

SNT

Senstar Technologies

3.10

1.72

124.64%

AVAV

AeroVironment

142.80

-3.32

-2.27%

ICFI

Icf International

83.01

-56.58

-40.53%

OSIS

OSI Systems

192.70

55.39

40.34%

Senstar Technologies Earnings Call Summary

Earnings Call Date: Nov 12, 2024 | % Change Since: 78.16% | Next Earnings Date: Apr 23, 2025

Earnings Call Sentiment Positive

The earnings call highlighted several positive financial metrics, including revenue growth, margin expansion, and net income improvement. Despite minor declines in specific regions and sectors, the overall financial health and strategic direction appear strong.

Highlights

Revenue Increase

Revenue increased by 8% compared to Q3 2023 and is up 7% year-to-date.

Gross Margin Expansion

Gross margin was exceptionally strong at 68%, an 11.4% point increase over Q3 2023, driven by streamlining activities, price adjustments, and a favorable product mix.

Operating Expenses Reduction

Operating expenses decreased by 3.6% from Q3 2023 and 9.2% year-to-date due to diligent expense control.

Geographical Sales Growth

Significant sales growth in the U.S. (12%) and EMEA (26%) across key verticals.

Net Income Improvement

Net income attributable to shareholders was $1.3 million compared to a net loss of $122,000 in the same quarter last year.

EBITDA Growth

EBITDA for the third quarter was $2 million, a significant increase from $322,000 in Q3 2023.

New Product Success

Initial sales from the MultiSensor product are promising, highlighting its innovative impact in the market.

Lowlights

APAC and Latin America Sales Decline

Sales in APAC and Latin America declined slightly, with APAC at 14% of revenue versus 16% last year, and Latin America at 3% versus 7%.

Logistics and Oil & Gas Revenue Decline

Slight revenue decline in logistics and oil & gas sectors, though future opportunities are anticipated.

Lack of Forward Guidance

No forward-looking statements provided regarding the impact of MultiSensor on 2025 growth or Q4 profitability.

Company Guidance

In the third quarter of 2024, Senstar Technologies reported a notable 8% increase in revenue compared to the same period in 2023, amounting to $9.7 million. Their gross margin improved significantly to 68%, an 11.4 percentage point increase from the previous year, driven by strategic price adjustments and product mix optimization. Operating expenses decreased by 3.6%, enhancing profitability, with operating income rising to $1.8 million from $123,000 a year earlier. The company experienced strong sales growth in the U.S. and EMEA, with a 26% sales increase in EMEA and a 12% increase in the U.S. Key verticals like correctional facilities and utilities saw heightened demand, contributing to this growth. In Q3 2024, Senstar's net income was $1.3 million, or $0.06 per share, a significant turnaround from a net loss of $122,000 in Q3 2023. Additionally, the company's EBITDA rose to $2 million from $322,000 year-over-year. Cash and cash equivalents stood at $19.5 million as of September 30, 2024, or $0.84 per share.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.