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Shearwater
(LSE:SWG)
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Rating:50Neutral
Price Target:
38.00 p
▼(-35.04% Downside)
Action:Reiterated
Date:02/04/26
The score is driven primarily by weak financial quality—loss-making operations and declining/free cash flow despite strong revenue growth—partly offset by supportive short-term technical momentum (price above 20/50 DMA and positive MACD). Valuation is also constrained by the loss-driven negative P/E and no dividend yield data.
Positive Factors
Strong Revenue Growth
Sustained ~35% top-line growth signals robust demand for Shearwater's cybersecurity services and validates go-to-market execution. Over a 2–6 month horizon this supports scale economics, expands cross-sell opportunities across subsidiaries, and provides a runway for investing in product and SOC capacity that can improve long-term margins if cost trends stabilize.
Negative Factors
Negative Profitability
Persistent negative net and EBIT margins indicate the business is not currently generating operating profits, which erodes equity and constrains reinvestment. Absent sustained margin recovery or outsized revenue expansion, losses will limit internal funding for growth and increase dependence on external capital over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained ~35% top-line growth signals robust demand for Shearwater's cybersecurity services and validates go-to-market execution. Over a 2–6 month horizon this supports scale economics, expands cross-sell opportunities across subsidiaries, and provides a runway for investing in product and SOC capacity that can improve long-term margins if cost trends stabilize.
Read all positive factors
Shearwater (SWG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£13.34M
Dividend YieldN/A
Average Volume (3M)55.68K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees90
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.04
Shares Outstanding23,829,712
10 Day Avg. Volume11,755
30 Day Avg. Volume55,683
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.33
Price to Sales (P/S)0.35
P/FCF Ratio6.93
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
EPS Forecast (FY)0.06
Revenue Forecast (FY)£38.00M
Shearwater Business Overview & Revenue Model
Company Description
Shearwater Group plc offers operational resilience capabilities to clients across the United Kingdom, Europe, North America, and other international markets. The company's operations are structured into two distinct divisions: Software and Service...
How the Company Makes Money
SWG makes money primarily by selling cybersecurity services and solutions through its operating subsidiaries. Revenue is typically generated from: (1) recurring managed services contracts (e.g., ongoing monitoring, detection/response, and managed ...
Shearwater Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.00M | 31.64M | 22.64M | 26.69M | 35.88M | 31.77M |
| Gross Profit | 1.50M | 4.18M | 6.85M | 3.32M | 7.41M | 6.70M |
| EBITDA | 0.00 | -7.21M | 320.00K | -6.42M | 4.46M | 3.39M |
| Net Income | -1.00M | -9.57M | -2.17M | -8.18M | -292.00K | 145.00K |
Balance Sheet | ||||||
| Total Assets | 52.80M | 53.23M | 62.23M | 69.70M | 78.61M | 72.68M |
| Cash, Cash Equivalents and Short-Term Investments | 2.20M | 5.06M | 4.97M | 3.96M | 5.58M | 8.05M |
| Total Debt | 100.00K | 267.00K | 378.00K | 321.00K | 206.00K | 1.06M |
| Total Liabilities | 20.10M | 19.50M | 16.25M | 21.58M | 22.40M | 16.19M |
| Stockholders Equity | 32.70M | 33.73M | 45.98M | 48.12M | 56.21M | 56.49M |
Cash Flow | ||||||
| Free Cash Flow | -2.30M | 1.62M | 1.23M | -1.41M | -1.60M | 5.84M |
| Operating Cash Flow | -2.30M | 1.64M | 2.30M | -74.00K | -456.00K | 6.59M |
| Investing Cash Flow | -500.00K | -1.37M | -1.07M | -1.34M | -1.15M | -737.00K |
| Financing Cash Flow | -100.00K | -185.00K | -216.00K | -200.00K | -872.00K | -1.15M |
Shearwater Technical Analysis
Neutral
58.50
Price Trends
53.91
Positive
46.16
Positive
44.72
Positive
Market Momentum
0.49
Positive
44.25
Neutral
20.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SWG, the sentiment is Neutral. The current price of 58.5 is above the 20-day moving average (MA) of 57.80, above the 50-day MA of 53.91, and above the 200-day MA of 44.72, indicating a neutral trend. The MACD of 0.49 indicates Positive momentum. The RSI at 44.25 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SWG.
Shearwater Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | £21.35M | -11.54 | -8.35% | ― | 7.66% | 8.26% | |
55 Neutral | £47.50M | -105.65 | 31.19% | 9.58% | 17.23% | 29.17% | |
52 Neutral | £59.54M | 25.36 | 16.07% | ― | 24.53% | ― | |
50 Neutral | £13.34M | -1.12 | -24.02% | ― | ― | ― | |
49 Neutral | £48.16M | -8.35 | -32.65% | ― | -5.08% | -98.14% | |
44 Neutral | £15.22M | -1.65 | -16.28% | 5.66% | 7.96% | 83.46% |
* Technology Sector Average
GB:SWG
Shearwater
56.00
1.50
2.75%
GB:BGO
Bango plc
62.50
-40.00
-39.02%
GB:CNS
Corero Network Security
11.63
2.38
25.68%
GB:IOM
Iomart Group plc
13.40
-6.80
-33.66%
GB:PCIP
PCI PAL
65.50
14.00
27.18%
GB:SYS
SysGroup
25.50
9.75
61.90%
Shearwater Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresShareholder Meetings
Shearwater Group Beats FY26 Expectations and Weighs Capital Return Options
Positive
Jul 27, 2026
Shearwater Group has reported that strong second-half trading in FY26 drove full-year revenue and adjusted EBITDA above market expectations, underpinned by continued growth in its Services segment and previously announced contract wins. Revenue is...
Business Operations and Strategy
Shearwater’s Brookcourt Wins US$1.2m Global Banking Email Security Deal
Positive
Jul 14, 2026
Shearwater Group’s subsidiary Brookcourt Solutions has secured a US$1.2 million, three-year contract to provide Core Email Protection technology to one of Japan’s largest financial groups and a leading global banking organisation. The ...
Business Operations and StrategyExecutive/Board Changes
Shearwater strengthens board with new audit chair
Positive
Jul 2, 2026
Shearwater Group plc has strengthened its board with the appointment of Jonathan Entract as an Independent Non-Executive Director and Chair of the Audit Committee, effective 1 July 2026. Entract, a chartered accountant and former partner at InfraR...
Business Operations and StrategyFinancial Disclosures
Shearwater’s Brookcourt Wins £25m Five-Year Contract Expansion with Global Telco
Positive
Jul 1, 2026
Cybersecurity group Shearwater, through its subsidiary Brookcourt Solutions, has secured a five-year contract expansion worth around £25m with a leading UK-based global telecommunications provider. The deal extends a long-standing relationshi...
Business Operations and StrategyRegulatory Filings and Compliance
Shearwater Discloses Administration of Chair’s External Directorship Firm
Neutral
May 18, 2026
Shearwater Group plc, the London AIM-listed cybersecurity and managed security services provider, has disclosed that administrators have been appointed to Aeralis Ltd., a separate company chaired by its Non-Executive Chair, Robin Southwell. The up...
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.