SuperCom (SPCB) AI Stock Analysis

• Market Cap: $57.47M
• Dividend Yield: N/A
• Average Volume (3M): 141.79K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 0.83
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 124
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.49
• Shares Outstanding: 4,448,300
• 10 Day Avg. Volume: 141,713
• 30 Day Avg. Volume: 141,788
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: $13.75
• Price Target Upside: 6.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 59 Neutral
• Price Target: $9.50 ▼(-26.36% Downside)

SuperCom's overall stock score reflects a mixed financial performance with notable improvements in profitability and strategic expansion efforts. However, challenges with cash flow and high leverage remain significant risks. The technical indicators suggest a bearish trend, while the valuation is moderate. The positive sentiment from the earnings call, driven by margin expansion and U.S. market growth, provides a more optimistic outlook.

Positive Factors

U.S. Market Expansion

Expanding into the U.S. market with new contracts and partnerships strengthens SuperCom's market position and growth potential, offering long-term revenue opportunities.

Margin Expansion

Sustained margin expansion indicates improved cost management and profitability, enhancing SuperCom's financial health and competitive edge over time.

Cash Position

A strong cash position enhances SuperCom's ability to invest in growth opportunities, manage debt, and weather economic fluctuations, supporting long-term stability.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting SuperCom's ability to invest in growth and manage economic downturns.

Cash Flow Challenges

Ongoing cash flow challenges may hinder SuperCom's ability to fund operations and growth initiatives, posing a risk to long-term financial health.

Revenue Decline

A decline in revenue can signal potential issues in market demand or competitiveness, affecting SuperCom's ability to sustain growth and profitability.

SuperCom Business Overview & Revenue Model

Company Description

SuperCom (SPCB) is a global provider of advanced security and identification solutions, primarily serving government and commercial sectors. The company specializes in electronic monitoring, identity management, and biometric solutions, offering products and services such as GPS tracking, electronic monitoring systems, and software for managing identity and data security. SuperCom aims to enhance public safety, streamline operations, and improve efficiency through its innovative technologies.

How the Company Makes Money

SuperCom generates revenue through multiple streams, including the sale of hardware and software solutions, subscription services for its electronic monitoring systems, and government contracts for identity management projects. The company also benefits from partnerships with law enforcement agencies and government entities, providing tailored solutions that meet specific security and monitoring needs. Additionally, recurring revenue from maintenance and support services contributes to its overall earnings, ensuring a steady income from existing installations and system upgrades.

SuperCom Financial Statement Overview

Summary

SuperCom is making progress in improving its financial performance, with positive net income and revenue growth. However, challenges remain with cash flow generation and high leverage, impacting financial stability. Continued focus on profitability and debt reduction is critical.

Income Statement

SuperCom has shown a positive turnaround in its income statement. The gross profit margin improved to 48.43% in 2024 from 38.47% in 2023, indicating better cost management. The net profit margin also turned positive to 2.39% from a negative margin in 2023, highlighting improved profitability. Revenue grew by 4.01% year-over-year, showing modest growth. However, EBIT and EBITDA margins remain slim at 0.08% and 19.73% respectively, indicating profitability is still a concern.

Balance Sheet

The balance sheet reflects a high level of leverage, with a debt-to-equity ratio of 2.63 in 2024. Although stockholders' equity has improved, the return on equity is only 5.65%, suggesting room for improvement in generating returns for shareholders. The equity ratio is at 25.46%, indicating that a significant portion of assets is financed by debt, which poses a financial risk.

Cash Flow

Cash flow performance remains a challenge for SuperCom. Despite negative free cash flow, it has improved slightly from -$5.73 million in 2023 to -$4.38 million in 2024. Operating cash flow to net income ratio is negative due to ongoing operating losses, and the free cash flow to net income ratio is also unfavorable. These metrics highlight the company's struggle to generate positive cash flow from its operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.84M	27.64M	26.57M	17.65M	12.27M	11.77M
Gross Profit	13.90M	13.38M	10.22M	6.39M	6.20M	5.58M
EBITDA	3.47M	5.46M	1.47M	-3.29M	-4.26M	-1.33M
Net Income	1.55M	661.00K	-4.02M	-7.46M	-10.14M	-7.87M
Balance Sheet
Total Assets	49.57M	45.92M	44.75M	42.04M	42.12M	40.34M
Cash, Cash Equivalents and Short-Term Investments	6.09M	3.54M	5.21M	4.04M	3.54M	3.14M
Total Debt	30.87M	30.73M	35.35M	34.16M	31.58M	22.16M
Total Liabilities	35.77M	34.23M	39.94M	38.91M	37.73M	35.42M
Stockholders Equity	13.81M	11.70M	4.82M	3.13M	4.39M	4.92M
Cash Flow
Free Cash Flow	1.64M	-4.64M	-5.73M	-6.79M	-11.10M	-7.92M
Operating Cash Flow	1.64M	-1.29M	-2.37M	-4.65M	-9.41M	-6.51M
Investing Cash Flow	0.00	-3.35M	-3.37M	-2.19M	-1.64M	-1.57M
Financing Cash Flow	0.00	2.60M	6.80M	6.74M	11.70M	10.83M

SuperCom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPCB, the sentiment is Positive. The current price of 12.9 is above the 20-day moving average (MA) of 10.79, above the 50-day MA of 10.09, and above the 200-day MA of 8.78, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 68.75 is Neutral, neither overbought nor oversold. The STOCH value of 84.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPCB.

SuperCom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPCB	59 Neutral	$57.47M	37.68	9.92%	―	―	―
VRME	50 Neutral	11.28M	-2.65	-26.23%	―	-13.20%	-89.43%
GFAI	50 Neutral	23.55M	-2.48	-18.30%	―	4.38%	74.69%
BKYI	48 Neutral	5.17M	-0.60	-114.02%	―	13.96%	85.22%
KSCP	44 Neutral	55.60M	-0.58	-205.74%	―	-6.61%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

SuperCom Corporate Events

SuperCom Ltd. Reports Strong Financial Growth in Mid-2025

SuperCom Ltd. released its condensed interim consolidated financial statements for the period ending June 30, 2025, showing a significant increase in total assets from $45,924,000 in December 2024 to $65,479,000. This financial growth is highlighted by an increase in cash and cash equivalents and trade receivables, indicating improved liquidity and operational performance. The company’s strategic financial management and operational execution appear to be positively impacting its market position and stakeholder confidence.