Worldsec (WSL) AI Stock Analysis

• Market Cap: £851.02K
• Dividend Yield: N/A
• Average Volume (3M): 880.00
• Price to Earnings (P/E): 21.4
• Beta (1Y): -0.37
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 166
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 85,101,875
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 880
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1.50
• Price Target Upside: 50.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: 1.50p ▲(50.00% Upside)

Worldsec's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and negative cash flows. Technical analysis further supports a bearish outlook with oversold conditions and downward momentum. The lack of valuation metrics adds uncertainty to the stock's assessment.

Worldsec Business Overview & Revenue Model

Company Description

Worldsec (WSL) is a global cybersecurity and technology solutions provider, specializing in protective measures for businesses and government entities against cyber threats. The company operates in multiple sectors, including financial services, healthcare, and government, offering a range of core products such as threat intelligence, security software, and incident response services. WSL is committed to delivering innovative security solutions that enhance digital resilience and safeguard critical data.

How the Company Makes Money

Worldsec generates revenue through a diversified model that includes subscription-based services, consulting fees, and licensing agreements. Key revenue streams consist of recurring income from software-as-a-service (SaaS) offerings, where clients pay for ongoing access to security platforms and tools. Additionally, WSL earns income from bespoke consulting services, assisting organizations in developing tailored security strategies. The company has formed significant partnerships with technology firms and government agencies, enhancing its market presence and enabling cross-selling opportunities, which further contribute to its earnings.

Worldsec Financial Statement Overview

Summary

Worldsec faces significant financial challenges, with declining revenues and profitability, despite a strong equity position. The company's cash flow situation is troubling, with negative operating and free cash flows. While leverage is low, the negative return on equity and profitability issues highlight operational inefficiencies and potential risks.

Income Statement

Worldsec's income statement reveals significant volatility. The company experienced a sharp decline in revenue growth rate, with a negative 335.65% in the latest year, indicating a substantial drop in revenue. Gross profit margin decreased to 46.56% from 56.44% the previous year, and the net profit margin turned negative at -10.81%, reflecting operational challenges. Despite a positive EBIT margin in 2023, it turned negative in 2024, highlighting profitability issues.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.01, indicating minimal leverage. However, the return on equity is negative at -1.01%, suggesting inefficiencies in generating returns from equity. The equity ratio remains stable, reflecting a solid capital structure, but the negative ROE is a concern.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, with a decline in free cash flow growth by 15.14%. The operating cash flow to net income ratio is negative, showing cash flow challenges. The free cash flow to net income ratio is stable at 1.0, but the overall cash flow situation is concerning.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	509.00K	629.00K	193.00K	145.00K	96.00K
Gross Profit	237.00K	355.00K	-77.00K	-146.00K	-183.00K
EBITDA	15.00K	126.00K	-332.00K	-372.00K	1.02M
Net Income	-55.00K	58.00K	-1.29M	1.71M	2.32M
Balance Sheet
Total Assets	5.65M	5.78M	5.66M	6.59M	5.99M
Cash, Cash Equivalents and Short-Term Investments	1.06M	1.31M	623.00K	2.14M	1.30M
Total Debt	55.00K	125.00K	55.00K	119.00K	180.00K
Total Liabilities	212.00K	282.00K	215.00K	282.00K	327.00K
Stockholders Equity	5.43M	5.50M	5.44M	6.31M	5.67M
Cash Flow
Free Cash Flow	-269.00K	-417.00K	-443.00K	-177.00K	-235.00K
Operating Cash Flow	-269.00K	-417.00K	-443.00K	-177.00K	-235.00K
Investing Cash Flow	-77.00K	1.08M	-476.00K	565.00K	-109.00K
Financing Cash Flow	-75.00K	-63.00K	-68.00K	-69.00K	-74.00K

Worldsec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WSL, the sentiment is Negative. The current price of 1 is below the 20-day moving average (MA) of 1.23, below the 50-day MA of 1.39, and below the 200-day MA of 1.71, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 0.19 is Positive, neither overbought nor oversold. The STOCH value of 34.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WSL.

Worldsec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MILA	48 Neutral	7.96M	-9.38	―	―	―	31.58%
GUN	47 Neutral	2.19M	-1.94	―	―	―	80.00%
WSL	44 Neutral	£851.02K	21.43	―	―	―	―
CHP	44 Neutral	3.10M	―	―	―	―	―
BRH	43 Neutral	1.69M	-1.26	―	―	-100.24%	84.97%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%