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WISeKey International Holding (WKEY)
NASDAQ:WKEY
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WISeKey International Holding
(NASDAQ:WKEY)
Rating:42Neutral
Price Target:
$5.50
▼(-7.41%Downside)
Positive Factors
Financial Stability
WKEY has sufficient capital to fund operations through 2029, with a strong cash position.
Growth Potential
A $145M new business pipeline is projected for 2026–2028, indicating significant growth potential.
Security Innovations
WKEY is expected to play an important role in protecting devices and information against emerging quantum computing threats.
Negative Factors
Declining Demand
2024 revenue declined 57.6% year-over-year, reflecting reduced demand at LAES due to normalization of semiconductor supply chains and declining interest in legacy products.
Market Dynamics
SEALSQ Corp. (LAES) issued in-line revenue, a steep decline from 2023 due to market dynamics.
Revenue Challenges
Preliminary 1H25 revenue for LAES was below estimates, indicating challenges in revenue realization.
WISeKey International Holding (WKEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$70.06M
Dividend YieldN/A
Average Volume (3M)199.26K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth-61.52%
EPS Growth35.64%
CountryUS
Employees109
SectorTechnology
Sector Strength86
IndustrySemiconductors
Share Statistics
EPS (TTM)-1.95
Shares Outstanding2,040,273
10 Day Avg. Volume150,078
30 Day Avg. Volume199,256
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.47
Price to Sales (P/S)0.00
P/FCF Ratio-0.75
Enterprise Value/Market Cap-0.97
Enterprise Value/Revenue-0.75
Enterprise Value/Gross Profit-15.93
Enterprise Value/Ebitda0.95
Forecast
1Y Price Target
$10.00Price Target Upside68.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
WISeKey International Holding Business Overview & Revenue Model
Company DescriptionWISeKey International Holding (WKEY) is a global cybersecurity company that specializes in secure authentication and identification solutions. Operating across various sectors including IoT, blockchain, and artificial intelligence, WISeKey provides integrated security solutions designed to protect data and communications. The company’s core offerings include digital identity management, secure microcontrollers, and digital certificates, ensuring the integrity and confidentiality of digital interactions.
How the Company Makes MoneyWISeKey International Holding makes money primarily through the sale of its cybersecurity products and services. Its revenue streams include licensing fees for digital certificates and identity management solutions, sales of secure hardware products such as microcontrollers, and consulting services for cybersecurity solutions. Additionally, the company leverages strategic partnerships with technology firms to integrate its security solutions into broader platforms, thereby expanding its market reach and enhancing revenue opportunities. These partnerships, along with its focus on emerging technologies like IoT and blockchain, are significant contributors to WISeKey's earnings.
WISeKey International Holding Earnings Call Summary
Earnings Call Date:Apr 17, 2025
(Q4-2024)
| % Change Since: 63.19%|
Next Earnings Date:Sep 30, 2025
Earnings Call Sentiment Neutral
WISeKey is progressing with strategic initiatives and technological advancements, particularly in satellite launches and a strong cash position. However, the company faced a significant revenue decline in 2024, and there is a delay in revenue from new products. The overall sentiment is mixed, with both positive and negative aspects present.Q4-2024 Updates
Positive Updates
Strategic Convergence and Technological Advancements
WISeKey announced a paradigm shift named the Year of WISeKey Convergence, integrating semiconductors, satellites, blockchain, and digital identity into a unified ecosystem, enhancing innovation and resilience.
Successful Satellite Launches
The company successfully launched 17 mini-satellites in partnership with SpaceX, with plans to deploy up to 88 new generation satellites in the next three years.
Strong Cash Position
WISeKey ended the year with a cash balance exceeding $90 million, supported by an $80 million capital raise in December 2024.
Pipeline of Business Opportunities
WISeKey has a robust pipeline of secured and pending business opportunities exceeding $150 million for the period 2026 to 2028.
Negative Updates
Revenue Decline
For the full year 2024, WISeKey reported revenue of $11.9 million, down from $30.1 million in 2023, reflecting a transitional year with semiconductor customers delaying inventory builds.
Delayed Revenue from New Products
The first revenue from the new quantum-resistant chips is expected in 2026, indicating a gap in immediate revenue generation from new technologies.
Company Guidance
During the WISeKey International Holdings Full Year 2024 Financial Results Earnings Conference Call, the company provided detailed guidance for 2025. WISeKey anticipates a substantial improvement in performance compared to 2024, supported by a strong cash position exceeding $90 million, achieved through an $80 million capital raise in December 2024. The company has set a five-year target to capture 20% of the Trusted Platform Model (TPM) market, with over 60 qualified leads and one design-in for its CPM product slated for commercial launch in 2025. WISeKey reported a robust pipeline of secured and pending business opportunities exceeding $150 million for 2026 to 2028, driven by public sector and defense partnerships and a focus on high-growth areas such as post-quantum security, satellite infrastructure, and blockchain ecosystems. The company also expects to see revenue contributions from SEALSQ's new quantum-resistant chips, anticipated to enter the market in Q4 2025, and projects substantial returns from their commercial deployment starting in 2026.WISeKey International Holding Financial Statement Overview
Summary
WISeKey International Holding faces substantial financial challenges with declining revenues, negative profit margins, and weakening equity. The company struggles with profitability and cash flow generation, relying heavily on external financing. While cash reserves are robust, operational and financial stability remain concerns without a clear path to revenue recovery or margin improvement.Income Statement
WISeKey International Holding shows a challenging income statement with declining total revenue from 2023 to 2024 and consistently negative net income. The gross profit margin decreased significantly from 47.7% in 2023 to 36.2% in 2024, indicating lower profitability. The net profit margin is deeply negative, and there is no positive EBIT margin. The company faces revenue contraction, deteriorating margins, and significant operational losses.30
Negative
Balance Sheet
The balance sheet reflects a mixed picture. While the company maintains a strong cash position with cash and short-term investments exceeding total debt, the total debt-to-equity ratio has increased due to declining equity. Stockholders' equity decreased, suggesting potential financial instability. The equity ratio is moderate but weakened over the years, pointing towards financial leverage increase.40
Negative
Cash Flow
Cash flows are under pressure with negative operating cash flow and free cash flow in 2024. The free cash flow deteriorated compared to 2023, and both the operating cash flow to net income and free cash flow to net income ratios indicate poor conversion of income to cash. Despite a significant inflow from financing activities, the company struggles with cash generation from its core operations.35
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.88M | 30.92M | 23.20M | 22.26M | 14.78M |
| Gross Profit | 4.29M | 14.74M | 9.80M | 9.09M | 5.46M |
| EBITDA | -26.28M | -13.27M | -12.04M | -20.40M | -27.67M |
| Net Income | -13.45M | -15.36M | 5.77M | -24.09M | -28.91M |
Balance Sheet | |||||
| Total Assets | 114.69M | 47.80M | 21.66M | 88.81M | 52.88M |
| Cash, Cash Equivalents and Short-Term Investments | 90.60M | 15.32M | 4.06M | 34.25M | 28.84M |
| Total Debt | 8.94M | 9.77M | 14.12M | 22.06M | 16.97M |
| Total Liabilities | 27.56M | 26.72M | 21.45M | 47.43M | 38.45M |
| Stockholders Equity | 25.05M | 26.68M | 212.00K | 35.90M | 16.27M |
Cash Flow | |||||
| Free Cash Flow | -18.34M | -17.23M | -17.45M | -21.83M | -12.60M |
| Operating Cash Flow | -17.77M | -14.21M | -17.14M | -21.79M | -12.55M |
| Investing Cash Flow | 179.00K | -3.02M | -484.00K | -2.52M | -3.90M |
| Financing Cash Flow | 92.92M | 11.85M | 4.18M | 36.98M | 21.48M |
WISeKey International Holding Technical Analysis
Negative
5.94
Price Trends
6.38
Negative
5.26
Positive
5.13
Positive
Market Momentum
-0.07
Positive
45.75
Neutral
20.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKEY, the sentiment is Negative. The current price of 5.94 is below the 20-day moving average (MA) of 6.30, below the 50-day MA of 6.38, and above the 200-day MA of 5.13, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 20.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKEY.
WISeKey International Holding Risk Analysis
WISeKey International Holding disclosed 59 risk factors in its most recent earnings report. WISeKey International Holding 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
WISeKey International Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $34.70B | 4.89 | -11.39% | 1.66% | 5.53% | -19.00% | |
60 Neutral | $329.84M | ― | -24.31% | ― | -12.13% | -39.21% | |
58 Neutral | $149.82M | ― | -33.15% | ― | -5.73% | 47.83% | |
57 Neutral | $66.41M | ― | -2911.20% | ― | -47.93% | -37.78% | |
55 Neutral | $59.41M | ― | 378.21% | ― | 39.81% | ― | |
50 Neutral | $84.11M | ― | 17.45% | ― | 94.76% | -146.39% | |
42 Neutral | $70.06M | ― | -51.84% | ― | -61.52% | 35.64% |
* Technology Sector Average
Performance Comparison
WKEY
WISeKey International Holding
5.94
3.84
182.86%
GSIT
GSI Technology
4.86
2.01
70.53%
PXLW
Pixelworks
13.59
1.87
15.96%
SQNS
Sequans Communications S A
2.15
0.84
64.12%
VLN
Valens
3.12
0.84
36.84%
GCTS
GCT Semiconductor Holding
1.56
-3.34
-68.16%
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.