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System1
(LSE:SYS1)
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Rating:61Neutral
Price Target:
369.00 p
▲(10.15% Upside)
Action:Downgraded
Date:07/10/26
The score is primarily supported by strong financial footing (low leverage and solid balance-sheet flexibility), but is tempered by uneven profitability/cash-flow performance (notably the 2026 step-down) and weak near-term technical momentum. Valuation appears relatively rich at a ~29.5 P/E, with only a modest dividend yield providing support.
Positive Factors
Conservative balance sheet
A conservatively financed balance sheet gives System1 flexibility to fund operations, absorb weaker earnings periods, and pursue growth without relying heavily on external capital. Low leverage also limits balance-sheet risk and supports resilience over the next several quarters.
Negative Factors
2026 profitability compression
The sharp 2026 decline in net, EBIT, and EBITDA margins shows that revenue growth has not translated consistently into earnings. Persistent margin pressure would reduce reinvestment capacity and make future profitability more dependent on cost control or operating improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
A conservatively financed balance sheet gives System1 flexibility to fund operations, absorb weaker earnings periods, and pursue growth without relying heavily on external capital. Low leverage also limits balance-sheet risk and supports resilience over the next several quarters.
Read all positive factors
System1 (SYS1) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£43.78M
Dividend Yield1.71%
Average Volume (3M)36.64K
Price to Earnings (P/E)33.8
Beta (1Y)-0.60
Revenue Growth-1.27%
EPS Growth-70.61%
CountryUK
Employees191
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.10
Shares Outstanding12,689,073
10 Day Avg. Volume64,881
30 Day Avg. Volume36,641
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)2.40
Price to Sales (P/S)0.93
P/FCF Ratio18.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£610.00Price Target Upside82.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.23
Revenue Forecast (FY)£38.80M
System1 Business Overview & Revenue Model
Company Description
System1 Group PLC, along with its affiliated entities, specializes in offering marketing and market research advisory services. The firm provides a suite of proprietary solutions, including a predictive marketing platform that leverages collective...
How the Company Makes Money
System1 primarily makes money by monetizing consumer intent through performance-based advertising. A key revenue stream is advertising and customer-acquisition campaigns sold to advertisers, where System1 is paid when users take desired actions (e...
System1 Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
82
Very Positive
Cash Flow
55
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.95M | 37.43M | 30.02M | 23.41M | 24.10M |
| Gross Profit | 30.78M | 32.86M | 26.12M | 19.72M | 20.20M |
| EBITDA | 3.89M | 6.70M | 4.40M | 2.04M | 2.06M |
| Net Income | 1.31M | 4.47M | 2.03M | 404.00K | 955.00K |
Balance Sheet | |||||
| Total Assets | 22.32M | 21.98M | 19.09M | 14.98M | 18.59M |
| Cash, Cash Equivalents and Short-Term Investments | 12.38M | 12.83M | 9.61M | 5.72M | 11.17M |
| Total Debt | 994.00K | 526.00K | 346.00K | 1.46M | 5.01M |
| Total Liabilities | 7.92M | 7.88M | 8.52M | 6.37M | 10.33M |
| Stockholders Equity | 14.40M | 14.10M | 10.57M | 8.61M | 8.26M |
Cash Flow | |||||
| Free Cash Flow | 1.90M | 4.92M | 5.10M | -1.88M | 3.90M |
| Operating Cash Flow | 2.00M | 5.51M | 5.93M | -628.00K | 4.04M |
| Investing Cash Flow | -640.00K | -595.00K | -833.00K | -1.25M | -138.00K |
| Financing Cash Flow | -1.99M | -1.33M | -1.12M | -3.82M | -1.95M |
System1 Technical Analysis
Positive
335.00
Price Trends
330.82
Positive
320.77
Positive
281.00
Positive
Market Momentum
7.40
Negative
63.08
Neutral
54.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SYS1, the sentiment is Positive. The current price of 335 is below the 20-day moving average (MA) of 339.14, above the 50-day MA of 330.82, and above the 200-day MA of 281.00, indicating a bullish trend. The MACD of 7.40 indicates Negative momentum. The RSI at 63.08 is Neutral, neither overbought nor oversold. The STOCH value of 54.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SYS1.
System1 Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | £43.78M | 33.82 | 9.14% | 1.71% | -1.27% | -70.61% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | £297.36M | -96.52 | -0.61% | 5.52% | -6.07% | 99.09% | |
59 Neutral | £315.93M | 25.83 | 6.46% | 3.45% | 2.11% | 818.58% | |
58 Neutral | £24.01M | -1.52 | -26.56% | 0.22% | 13.48% | -495.86% | |
47 Neutral | £13.55M | -3.04 | -19.11% | 1.38% | -6.88% | 63.74% | |
47 Neutral | £144.44M | -14.27 | -32.44% | 1.23% | -4.93% | -232.75% |
* Communication Services Sector Average
GB:SYS1
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System1 Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsShareholder Meetings
System1 AGM Reveals Shareholder Pushback on Capital Flexibility
Negative
Sep 25, 2026
System1 Group PLC reported that shareholders approved the majority of resolutions at its 25 September AGM, including the adoption of the 2025/26 accounts, re-election of most directors, appointment of auditors, and a final dividend of 6 pence per ...
Business Operations and StrategyFinancial Disclosures
System1 lifts FY27 profit guidance after sharp earnings rebound
Positive
Sep 24, 2026
System1 Group PLC, a London-listed provider of marketing decision-making tools, has reported a sharp improvement in profitability in the first five months of its 2027 financial year. The group, which uses emotion-based testing and consultancy to h...
Business Operations and StrategyFinancial Disclosures
System1 lifts profit outlook as cost efficiencies turbocharge earnings
Positive
Sep 24, 2026
System1 Group has reported a sharp improvement in profitability for the five months to 31 August 2026, with adjusted profit before tax rising to £2.1m from £0.3m a year earlier on 11% revenue growth and an 87% gross margin. The gains wer...
Shareholder Meetings
System1 Alters AGM Format Amid Ongoing Offer Period
Neutral
Sep 23, 2026
System1 Group PLC, a marketing decision-making platform provider, leverages a large database of emotional norms to help brands forecast the business impact of creative campaigns. Its services span ad testing, innovation evaluation and brand effect...
Business Operations and StrategyM&A Transactions
System1 Secures Investor Backing to Reject Brave Bison’s Cut‑Price Takeover Bid
Neutral
Sep 16, 2026
System1 Group PLC has unanimously rejected Brave Bison Group’s fourth takeover offer, arguing that the bid materially undervalues the business and provides no premium for control. The board highlights that, based on Brave Bison’s lates...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
System1 Rallies Shareholder Support to Reject Discounted Brave Bison Bid
Positive
Sep 10, 2026
System1 Group PLC has published a formal response document rejecting Brave Bison Group’s unsolicited takeover offer for the shares it does not already own, arguing that the proposed cash-and-share and all-share terms materially undervalue th...
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
System1 posts double-digit revenue growth and launches new AI ad screening tool
Positive
Sep 10, 2026
System1 Group PLC reported an 11% year-on-year increase in total revenue for the first five months of fiscal 2027, with platform revenue up 12% as stronger engagement from existing clients and new wins drove growth. The U.S. became the companyR...
Business Operations and StrategyM&A Transactions
System1 Board Rejects Brave Bison’s Discounted Takeover Offer
Neutral
Aug 28, 2026
System1 Group PLC’s board has unanimously rejected Brave Bison Group’s latest cash-and-share and all-share takeover proposals, arguing that both structures significantly undervalue the company versus its prevailing market price. The re...
Business Operations and StrategyProduct-Related Announcements
System1 launches AI-powered ad screening tool to expand Test Your Ad platform
Positive
Aug 27, 2026
System1 Group has expanded its Test Your Ad platform with the launch of Test Your Ad Screen, an AI-powered screening tool trained on 18 million human emotional responses to evaluate the likely commercial effectiveness of video adverts and other cr...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
System1 Publishes 2026 Annual Report and Sets September AGM
Neutral
Aug 25, 2026
System1 Group PLC has distributed its Annual Report and Accounts for the year ended 31 March 2026, along with the notice of its Annual General Meeting and proxy form, to shareholders. The AGM is scheduled to take place on 25 September 2026 at Reed...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
System1 Board Rejects Brave Bison’s Discounted Takeover Offer
Positive
Jul 31, 2026
System1 Group PLC’s board has unanimously and unequivocally rejected Brave Bison Group’s revised and alternative takeover offers, arguing that both proposals value System1’s shares at a discount to the prevailing market price and...
Business Operations and StrategyRegulatory Filings and Compliance
System1 Withdraws Shareholder Support Claims Amid Takeover Panel Scrutiny
Neutral
Jul 17, 2026
System1 Group PLC issued a clarification after the UK Takeover Panel requested withdrawal of earlier statements suggesting shareholder support for a possible offer, noting these comments had not been prepared in line with relevant takeover rules. ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
System1 Board Rejects Brave Bison’s Low-Premium Takeover Approach
Positive
Jul 17, 2026
System1 Group PLC has firmly rejected Brave Bison Group PLC’s possible takeover offer, arguing that the proposed mix of cash and shares, which implies only a small premium to the pre-offer share price and even a discount on more recent price...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
System1 Board Rejects Brave Bison’s Revised Takeover Approach
Positive
Jul 13, 2026
System1’s board has unanimously rejected unsolicited all-share and cash-and-share proposals from Brave Bison Group, arguing that both the initial and revised offers materially undervalue the company. The initial approach offered no premium a...
DividendsShareholder Meetings
System1 Sets Final Dividend Timetable for October 2026
Positive
Jul 8, 2026
System1 Group PLC has announced a proposed final dividend of 6 pence per ordinary share, to be paid on or around 19 October 2026, contingent on shareholder approval at the Annual General Meeting on 25 September 2026. Shareholders on the register a...
Business Operations and StrategyDividendsFinancial Disclosures
System1 posts record second-half revenue as investments weigh on annual profit
Neutral
Jul 8, 2026
System1 reported flat full-year revenue of £37m for the year to 31 March 2026, as 3% growth in platform income offset a sharp fall in bespoke consultancy work amid tariff-driven pressure on advertising budgets. Profit before tax dropped to &#...
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.