SuperCom (SPCB) AI Stock Analysis

• Market Cap: $41.24M
• Dividend Yield: N/A
• Average Volume (3M): 93.88K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 1.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 124
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.39
• Shares Outstanding: 4,448,300
• 10 Day Avg. Volume: 119,336
• 30 Day Avg. Volume: 93,880
• PEG Ratio: -0.12
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -1.80
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $18.00
• Price Target Upside: 94.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $9.00 ▼(-2.91% Downside)

SuperCom's overall stock score reflects a mix of improving financial performance and strategic growth initiatives, offset by high leverage and negative cash flow. Technical indicators suggest bearish momentum, and valuation appears stretched, limiting immediate upside potential.

Positive Factors

US Market Expansion

Expanding into 12 new states with 14 partnerships strengthens SuperCom's market position and revenue potential in a key market.

International Growth

Winning a major project in Germany enhances SuperCom's international footprint and displaces long-standing competitors, indicating strong competitive positioning.

Margin Improvement

Significant margin expansion reflects improved cost management and operational efficiency, supporting long-term profitability.

Negative Factors

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, affecting long-term stability.

Negative Cash Flow

Ongoing negative cash flow indicates struggles in generating cash from operations, potentially impacting future investments and growth.

Revenue Decline

Declining revenue suggests challenges in maintaining sales momentum, which could hinder long-term growth prospects if not addressed.

SuperCom Business Overview & Revenue Model

Company Description

SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. It offers MAGNA, a common platform for national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. The company's PureRF suite is a solution based on RFID tag technology to identify, locate, track, monitor, count, and protect people and objects. Its PureRF suite comprises PureRF tags, hands-free long-range RFID asset and vehicle tags, PureRF readers, PureRF activators, and PureRF initializers, house arrest monitoring systems, PureTag RF bracelets, PureCom RF base stations, GPS offender tracking systems, PureTrack, PureBeacon, PureMonitor offender electronic monitoring software, inmate monitoring systems, DoorGuard tracking station, and personnel tags. In addition, the company offers domestic violence victim protection systems. Further, it provides connectivity products and solutions comprising AVIDITY WBSac, BOLSTER WBSn, BreezeULTRA P6000, Arena controller, and BreezeNET B. Additionally, the company offers Safend's Encryption Suite that protects the organization's sensitive data; and designs solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. It sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives and resellers. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was incorporated in 1988 and is headquartered in Tel Aviv-Yafo, Israel.

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's financial performance shows improvement in profitability with a positive net profit margin and revenue growth. However, high leverage and negative cash flow remain significant concerns, impacting financial stability.

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	27.72M	27.64M	26.57M	17.65M	12.27M	11.77M
Gross Profit	14.76M	13.38M	10.22M	6.39M	6.20M	5.58M
EBITDA	4.89M	5.46M	1.47M	-3.29M	-4.26M	-1.33M
Net Income	3.73M	661.00K	-4.02M	-7.46M	-10.14M	-7.87M
Balance Sheet
Total Assets	65.48M	45.92M	44.75M	42.04M	42.12M	40.34M
Cash, Cash Equivalents and Short-Term Investments	15.42M	3.54M	5.21M	4.04M	3.54M	3.14M
Total Debt	24.41M	30.73M	35.35M	34.16M	31.75M	22.16M
Total Liabilities	28.23M	34.23M	39.94M	38.91M	37.73M	35.42M
Stockholders Equity	37.25M	11.70M	4.82M	3.13M	4.39M	4.92M
Cash Flow
Free Cash Flow	-1.33M	-4.64M	-5.73M	-6.79M	-11.10M	-7.92M
Operating Cash Flow	-345.00K	-1.29M	-2.37M	-4.65M	-9.41M	-6.51M
Investing Cash Flow	-2.16M	-3.35M	-3.37M	-2.19M	-1.64M	-1.57M
Financing Cash Flow	-49.00K	2.60M	6.80M	6.74M	11.70M	10.83M

SuperCom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPCB, the sentiment is Neutral. The current price of 9.27 is below the 20-day moving average (MA) of 9.51, below the 50-day MA of 10.61, and above the 200-day MA of 9.23, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 64.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPCB.

SuperCom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUGP	66 Neutral	$8.31M	―	-4.31%	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SPCB	54 Neutral	$41.24M	26.50	―	―	―	―
VRME	48 Neutral	$11.46M	-2.69	-44.14%	―	-14.21%	-20.44%
BKYI	47 Neutral	$8.76M	―	-143.60%	―	-1.19%	86.72%
GFAI	47 Neutral	$17.77M	-1.87	-21.54%	―	4.38%	74.69%
KSCP	41 Neutral	$55.82M	―	-164.48%	―	5.50%	51.32%

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.