Education
About Us
Working with TipRanks
Follow Us
SuperCom (SPCB)
NASDAQ:SPCB
Top Page
SuperCom
(NASDAQ:SPCB)
Select Model
Select Model
Rating:54Neutral
Price Target:
$9.00
▲(13.78% Upside)
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 (SPCB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.19M
Dividend YieldN/A
Average Volume (3M)51.49K
Price to Earnings (P/E)22.6
Beta (1Y)0.92
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees124
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.39
Shares Outstanding4,448,300
10 Day Avg. Volume80,949
30 Day Avg. Volume51,493
Financial Highlights & Ratios
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 Cap1.28
Enterprise Value/Revenue1.63
Enterprise Value/Gross Profit3.05
Enterprise Value/Ebitda9.21
Forecast
1Y Price Target
$18.00Price Target Upside127.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SuperCom Business Overview & Revenue Model
Company DescriptionSuperCom 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 MoneySuperCom generates revenue primarily through the sale of its technology solutions and services. The company has a diverse revenue model that includes recurring revenue from software-as-a-service (SaaS) contracts, hardware sales, and ongoing maintenance and support services. Key revenue streams include electronic monitoring services for probation and parole systems, biometric identification systems for secure access and identity verification, and software solutions for healthcare providers. Significant partnerships with government agencies and law enforcement organizations contribute to a stable demand for SuperCom's offerings, further enhancing its earnings potential.
SuperCom Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The earnings call highlights significant operational and financial improvements, particularly in the US market and international expansion, alongside strategic debt reduction and margin growth. However, there are concerns about revenue decline and geographical revenue volatility.Q3-2025 Updates
Positive Updates
Expansion in the US Market
Secured over 30 new electronic monitoring contracts in the US since mid-2024, entering 12 new states and forming 14 partnerships with regional service providers.
International Growth
Awarded a $7 million national electronic monitoring project in Germany, displacing a vendor that had served the German government for over 20 years.
Financial Performance Improvement
Achieved gross margins of 60.8%, up from 45.6% a year ago, and operating income surged to $640,000 from $30,000 in Q3 of last year.
Strategic Debt Reduction
Reduced net debt by nearly $25 million over the past two years, enhancing financial flexibility.
Record EBITDA Growth
EBITDA doubled to $2.2 million from $1.1 million in 2024, reflecting an EBITDA margin of 34.6%.
Negative Updates
Revenue Decline
Revenue for the quarter came in at $6.2 million compared to $6.9 million in Q3 of last year.
Geographical Revenue Volatility
Revenue volatility due to the mix of different projects and stages, with some regions experiencing softer performance.
Company Guidance
During the third-quarter 2025 financial results call for SuperCom Ltd., significant guidance was provided, highlighting the company's strategic growth and financial performance. SuperCom reported a quarterly revenue of $6.2 million, a slight decrease from $6.9 million in the same period last year, but achieved substantial profitability improvements. Gross profit for the quarter increased to $3.8 million, with gross margins expanding to 60.8%, up from 45.6% a year ago. Operating income surged to $640,000, and EBITDA doubled to $2.2 million, reflecting an EBITDA margin of 34.6%. The company also reported a net income of $700,000, turning around from a net loss of $400,000 the previous year. Non-GAAP net income rose to $1.9 million, with non-GAAP EPS reaching $0.39 compared to $0.17 in 2024. For the first nine months of 2025, revenue was $20.4 million, with gross profit increasing to $12.5 million, reflecting a gross margin of 61%, and net income more than doubling to $6 million. The call emphasized SuperCom's expansion in the US market, securing over 30 new contracts since mid-2024, and its strategic foothold in Europe with a $7 million project in Germany. The company's operational strategy and technology investments, including more than $45 million in R&D, position it for sustained growth and margin expansion, especially as its US market presence strengthens.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
Negative
7.91
Price Trends
9.46
Negative
10.02
Negative
9.34
Negative
Market Momentum
-0.26
Positive
34.21
Neutral
15.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPCB, the sentiment is Negative. The current price of 7.91 is below the 20-day moving average (MA) of 9.18, below the 50-day MA of 9.46, and below the 200-day MA of 9.34, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 34.21 is Neutral, neither overbought nor oversold. The STOCH value of 15.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPCB.
SuperCom Risk Analysis
SuperCom disclosed 38 risk factors in its most recent earnings report. SuperCom 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
SuperCom Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $9.43M | -9.35 | -4.31% | ― | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $35.19M | 22.61 | ― | ― | ― | ― | |
51 Neutral | $12.82M | -2.70 | -44.14% | ― | -14.21% | -20.44% | |
47 Neutral | $6.55M | -0.59 | -143.60% | ― | -1.19% | 86.72% | |
44 Neutral | $14.29M | -1.50 | -21.54% | ― | 4.38% | 74.69% | |
40 Underperform | $47.65M | -0.61 | -164.48% | ― | 5.50% | 51.32% |
* Industrials Sector Average
SPCB
SuperCom
7.91
-0.18
-2.22%
BKYI
BIO-key International
0.60
-0.89
-59.46%
VRME
VerifyMe
1.03
-3.10
-75.06%
GFAI
Guardforce AI Co
0.68
-1.09
-61.64%
KSCP
Knightscope Inc Class A
4.14
-6.76
-62.02%
SUGP
SU Group Holdings Ltd
6.44
-5.06
-44.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.