KORE Group Holdings (KORE) AI Stock Analysis

• Market Cap: $62.47M
• Dividend Yield: N/A
• Average Volume (3M): 29.59K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.11
• Revenue Growth: 0.24%
• EPS Growth: 68.22%
• Country: US
• Employees: 539
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.92
• Shares Outstanding: 17,493,073
• 10 Day Avg. Volume: 35,835
• 30 Day Avg. Volume: 29,593
• PEG Ratio: 0.02
• Price to Book (P/B): -0.62
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -17.46
• Enterprise Value/Market Cap: 7.59
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 3.00
• Enterprise Value/Ebitda: 15.52
• 1Y Price Target: $6.00
• Price Target Upside: 50.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: $4.00 ▲(0.50% Upside)

KORE's overall stock score is primarily impacted by its financial instability, with negative margins and high leverage posing significant risks. However, strong technical momentum and positive earnings call sentiment provide some optimism. The valuation remains a concern due to ongoing losses.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

IoT Solutions Revenue

Strong growth in IoT Solutions revenue showcases KORE's ability to capitalize on industry trends, supporting sustained business expansion.

Positive Free Cash Flow

Consistent positive free cash flow enhances financial flexibility and supports future investments, critical for long-term growth.

Negative Factors

High Leverage

High leverage poses risks to financial stability, potentially limiting the company's ability to invest in growth and weather economic downturns.

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and could hinder the company's ability to achieve sustainable profitability.

Decrease in ARPU

A decrease in ARPU suggests challenges in maintaining pricing power, which could impact revenue growth and profitability over time.

KORE Group Holdings Business Overview & Revenue Model

Company Description

KORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity, location-based, device solutions, and managed and professional services that are used in the development and support of IoT technology for the Machine-to-Machine market. The company provides Connectivity-as-a-Service; IoT solutions and analytics to fleet tracking companies; and asset monitoring, communications, and industrial IoT services. It serves customers operating in a range of sectors, including healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing. The company was founded in 2002 and is headquartered in Alpharetta, Georgia.

How the Company Makes Money

KORE Group Holdings generates revenue primarily through its IoT connectivity services and managed solutions. The company's revenue model is based on recurring subscription fees for its connectivity services, which provide businesses with reliable and secure network connections for their IoT devices. Additionally, KORE earns money by offering managed IoT services, including device management, application enablement, and data analytics, which help organizations optimize their IoT deployments. Strategic partnerships with telecom carriers, hardware manufacturers, and technology providers also play a crucial role in extending KORE's market reach and enhancing its service offerings.

KORE Group Holdings Financial Statement Overview

Summary

KORE Group Holdings faces significant financial challenges. The company struggles with profitability and operational efficiency, as evidenced by its negative profit margins and declining revenue. Its balance sheet reflects financial instability with negative equity, and while there are signs of cash flow improvement, these are insufficient to offset the broader financial concerns.

Income Statement

KORE Group Holdings' income statement reveals significant weaknesses. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 55.7%, which is solid. However, the net profit margin is deeply negative at -43.9%, indicating substantial losses. The company has seen inconsistent revenue growth, with a slight decline of 1.3% from the previous year. Additionally, the EBIT margin is -22.8% and the EBITDA margin is -8.8%, both reflecting operational inefficiencies.

Balance Sheet

The balance sheet of KORE Group Holdings presents concerning figures. The debt-to-equity ratio is not meaningful due to negative stockholders' equity, signaling financial distress. The equity ratio is also negative, further underscoring the company's liabilities exceeding its assets. Return on equity is not calculable due to negative equity, hinting at potential insolvency risks.

Cash Flow

Cash flow analysis shows some positive aspects. The operating cash flow to net income ratio is negative, indicating inefficiency in translating profits into cash. However, the free cash flow to net income ratio is more favorable at 0.02, suggesting some capacity to generate cash. The free cash flow growth rate is positive, marking a recovery from previous negative levels, but overall cash flow sustainability remains a challenge.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	285.64M	286.09M	276.61M	268.45M	248.22M	213.76M
Gross Profit	158.00M	159.93M	148.05M	139.29M	125.99M	115.83M
EBITDA	30.53M	-41.99M	-67.27M	-28.07M	40.04M	35.46M
Net Income	-76.64M	-146.08M	-167.04M	-105.42M	-24.45M	-35.20M
Balance Sheet
Total Assets	432.94M	455.83M	586.98M	689.91M	759.60M	700.02M
Cash, Cash Equivalents and Short-Term Investments	20.96M	19.41M	27.14M	34.65M	85.98M	10.32M
Total Debt	304.68M	307.22M	309.52M	430.34M	402.90M	302.93M
Total Liabilities	566.43M	555.43M	550.01M	508.46M	487.46M	679.80M
Stockholders Equity	-133.49M	-99.60M	36.97M	181.45M	272.14M	20.22M
Cash Flow
Free Cash Flow	3.43M	-3.55M	-26.65M	-189.00K	-28.18M	14.50M
Operating Cash Flow	10.99M	9.91M	-6.42M	16.36M	-14.76M	26.47M
Investing Cash Flow	-9.46M	-13.46M	-20.23M	-62.55M	-13.42M	-11.60M
Financing Cash Flow	-3.12M	-3.78M	18.91M	-4.69M	104.05M	-12.72M

KORE Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KORE, the sentiment is Positive. The current price of 3.98 is above the 20-day moving average (MA) of 3.28, above the 50-day MA of 2.73, and above the 200-day MA of 2.50, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 74.72 is Negative, neither overbought nor oversold. The STOCH value of 78.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KORE.

KORE Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNREY	―	$142.51M	―	―	7.18%	―	―
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
UCL	―	$87.69M	44.70	9.31%	―	3.54%	-54.89%
KORE	―	$62.47M	―	―	―	0.24%	68.22%
FNGR	―	$94.51M	-16.49	-42.52%	―	15.09%	13.28%
IQST	―	$20.53M	―	-80.54%	―	30.35%	-45.94%
YDKG	―	$10.30M	-0.02	-113.86%	―	2482.80%	-169.59%

KORE Group Holdings Corporate Events

Kore Group Holdings Reports Strong Q2 Earnings Performance

In the recent earnings call, Kore Group Holdings, Inc. demonstrated a strong performance, showcasing significant growth in revenue and profitability. Despite facing macroeconomic challenges and a decrease in Average Revenue Per User (ARPU), the overall sentiment was positive, with the company’s strategic market wins and financial achievements overshadowing the negatives.

KORE Group Holdings Sees Strong Q2 2025 Growth

KORE Group Holdings, Inc. is a global leader in the Internet of Things (IoT) sector, providing connectivity, solutions, and analytics to enhance business operations across various industries.