Advenica AB (ADVE) AI Stock Analysis

• Market Cap: kr636.92M
• Dividend Yield: 0.62%
• Average Volume (3M): 84.53K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.64
• Revenue Growth: 27.82%
• EPS Growth: 305.33%
• Country: SE
• Employees: 104
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.07
• Shares Outstanding: 43,985,897
• 10 Day Avg. Volume: 113,793
• 30 Day Avg. Volume: 84,525
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: kr15.00 ▼(-5.30% Downside)

Advenica AB's overall stock score reflects strong financial performance, particularly in profitability and operational efficiency. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued. The absence of notable earnings call insights or corporate events leaves these areas neutral in the assessment.

Advenica AB Business Overview & Revenue Model

Company Description

Advenica AB (publ) develops and offers cybersecurity solutions and services worldwide. The company provides cross domain security products, including SecuriCDS Data Diode, which allows unidirectional information exchange between various security domains in real time, as well as guarantees unidirectional separation between networks; ZoneGuard, a gateway for controlled information exchange; SecuriRAM, a self-erasing USB drive designed to transport a limited amount of information; File Security Screener, a cross domain solution with malware security scanning; and Secure Remote Access that enables secure access to systems. It also offers network encryptors, such as SecuriConnect, a communication solution, which provides protection against cyberattacks; three domain separation, a paradigm shift in VPN management that eliminates the threat of unauthorized disclosure of sensitive information by a VPN administrator or a managed security service provider; SecuriVPN ISA, a hardware based quantum-secure network encryptor; and SecuriVPN Arana that provides protection against interception. In addition, the company provides risk and security analysis, penetration testing, customer support, managed services, and customized solutions, as well as Advenica Academy, a solution for securing crucial knowledge. It serves customers in the areas of critical infrastructure, national security, corporate, and public sector. The company was formerly known as Business Security OL AB and changed its name to Advenica AB (publ) in April 2014. Advenica AB (publ) was incorporated in 1993 and is headquartered in Malmö, Sweden.

How the Company Makes Money

Advenica generates revenue through the sale of its high-security products and services, which include secure communication systems and network solutions tailored for various sectors such as government, military, and critical infrastructure. The company's revenue model is primarily based on direct product sales, licensing agreements, and ongoing support and maintenance services. Key revenue streams include initial sales of hardware and software solutions, recurring income from maintenance contracts, and consulting services related to cybersecurity implementation. Additionally, Advenica may benefit from strategic partnerships with other technology firms and government contracts that enhance its market reach and credibility, contributing to its overall earnings.

Advenica AB Financial Statement Overview

Summary

Advenica AB demonstrates strong financial performance with significant improvements in profitability and operational efficiency. The income statement shows robust margins and healthy revenue growth. The balance sheet is stable with low leverage, and cash flow metrics are adequate, though there is room for improvement in cash flow growth.

Income Statement

Advenica AB has shown a strong improvement in its income statement metrics over the TTM period. The gross profit margin is robust at 63.86%, indicating efficient cost management. The net profit margin has improved significantly to 11.91%, reflecting enhanced profitability. Revenue growth rate is healthy at 6.62%, demonstrating consistent business expansion. EBIT and EBITDA margins have also improved, suggesting better operational efficiency.

Balance Sheet

The balance sheet of Advenica AB shows a stable financial position with a low debt-to-equity ratio of 0.15, indicating conservative leverage. The return on equity is strong at 22.35%, showcasing effective use of equity to generate profits. The equity ratio is solid, reflecting a strong capital structure. However, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth, but the company maintains a healthy free cash flow to net income ratio of 0.87, indicating good cash conversion. The operating cash flow to net income ratio is moderate at 0.54, suggesting adequate cash generation from operations. Continued focus on improving cash flow metrics will be beneficial.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	199.75M	162.17M	148.86M	118.41M	101.26M	84.36M
Gross Profit	127.56M	90.40M	86.35M	98.99M	71.91M	62.55M
EBITDA	32.58M	15.02M	9.94M	8.53M	-12.23M	-15.26M
Net Income	23.79M	8.05M	-4.12M	-1.99M	-17.45M	-19.99M
Balance Sheet
Total Assets	211.27M	225.86M	183.94M	178.96M	126.86M	100.32M
Cash, Cash Equivalents and Short-Term Investments	96.50M	118.86M	81.69M	92.12M	22.14M	19.56M
Total Debt	17.47M	20.42M	28.09M	11.75M	30.32M	15.26M
Total Liabilities	93.37M	124.25M	90.20M	81.17M	87.29M	69.84M
Stockholders Equity	117.90M	101.61M	93.73M	97.79M	39.57M	30.48M
Cash Flow
Free Cash Flow	39.31M	50.94M	-4.58M	22.74M	-38.59M	-5.56M
Operating Cash Flow	45.18M	52.05M	136.00K	25.77M	-32.42M	16.00K
Investing Cash Flow	-9.47M	-8.86M	-4.27M	-3.03M	-6.17M	-5.57M
Financing Cash Flow	-10.86M	-6.63M	-6.29M	45.45M	41.16M	16.68M

Advenica AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ADVE, the sentiment is Negative. The current price of 15.84 is below the 20-day moving average (MA) of 16.35, below the 50-day MA of 18.67, and below the 200-day MA of 19.33, indicating a bearish trend. The MACD of -1.22 indicates Positive momentum. The RSI at 31.10 is Neutral, neither overbought nor oversold. The STOCH value of 29.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ADVE.

Advenica AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADVE	―	kr636.92M	27.19	22.29%	0.62%	27.82%	305.33%
4C	―	kr551.16M	27.13	―	―	27.42%	―
FREJA	―	kr535.52M	―	―	―	23.24%	55.65%
BINERO	―	kr281.32M	―	-11.28%	―	77.78%	-1.35%
CLAV	―	kr1.18B	-27.97	―	―	20.75%	61.27%
CYB1	―	€3.41M	-2.56	―	―	―	―