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Sinch AB (SE:SINCH)
:SINCH
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Sinch AB
(OTC:SINCH)
53Neutral
Sinch AB (SINCH) vs. S&P 500 (SPY)
Market Cap
$20.62B
Dividend YieldN/A
Average Volume (3M)7.18M
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth-0.11%
EPS Growth-15231.27%
CountrySE
Employees3,583
SectorCommunication Services
Sector Strength82
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.55
Shares Outstanding844,556,200
10 Day Avg. Volume7,630,481
30 Day Avg. Volume7,183,315
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)0.70
Price to Sales (P/S)0.00
P/FCF Ratio8.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.85Price Target Upside-11.40% Downside
Rating ConsensusHold
Number of Analyst Covering4
Sinch AB Business Overview & Revenue Model
Company DescriptionSinch AB (publ) provides cloud communications services and solutions for enterprises and mobile operators in Sweden, France, the United Kingdom, Germany, Brazil, India, Singapore, other European countries, the United States, and internationally. It operates through four segments: Messaging, Voice and Video, Email, and Operators. The company offers conversation, messaging, verification, and calling APIs, channels, numbers, and inteliquent and solutions, which include marketing team, operations, customer service, conversational marketing, commerce, and care, as well as mobile identity and security. It serves to financial services, healthcare, media and entertainment, retail, telecommunication, and travel and transport industries. The company was formerly known as CLX Communications AB (publ) and changed its name to Sinch AB (publ) in July 2019. Sinch AB (publ) was founded in 2008 and is headquartered in Stockholm, Sweden.
How the Company Makes MoneySinch AB generates revenue primarily through its cloud-based communications platform, which offers messaging, voice, and video services to businesses and developers. The company's key revenue streams include fees from enterprise customers who use its APIs for messaging and communications, and transactional fees for each message or call processed through its platform. Sinch also earns revenue through partnerships with mobile network operators and other technology providers, which help expand its service reach and capabilities. The company's focus on the booming mobile communications market and its ability to provide scalable, reliable, and flexible solutions are significant factors contributing to its earnings.
Sinch AB Financial Statement Overview
Summary
Sinch AB's financial performance shows mixed results. The income statement highlights declining revenues and negative profitability, whereas the balance sheet is strong with zero debt and increasing equity. The cash flow remains robust, indicating efficient operations.Income Statement
Sinch AB shows a mixed performance in its income statement. The company has experienced a decline in total revenue from 2023 to 2024, with a notable drop in gross profit margin from 2023 to 2024. The net profit margin has turned negative in 2024, indicating a challenging year with net losses. Despite past positive growth, recent figures suggest potential instability.45
Neutral
Balance Sheet
The balance sheet reveals a strong equity position with zero debt in 2024, which is a positive sign of financial stability. However, the significant decrease in total assets from 2023 to 2024 and the negative net income impact the overall financial health. The increasing equity ratio is a strength, indicating a solid financial foundation.60
Neutral
Cash Flow
Cash flow metrics for Sinch AB are robust, with strong free cash flow growth in 2024 compared to 2023. The company demonstrates a healthy operating cash flow to net income ratio, suggesting effective cash management despite net losses. The positive free cash flow is a key strength, underscoring operational efficiency.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 28.71B | 28.75B | 27.72B | 16.18B | 8.02B | Gross Profit |
| 10.07B | 2.51B | 8.81B | 3.93B | 2.18B | EBIT |
| 206.00M | 494.00M | -4.02B | 1.68B | 653.31M | EBITDA |
| -1.06B | 3.13B | -1.96B | 1.96B | 686.38M | Net Income Common Stockholders |
| -6.41B | 42.00M | -4.94B | 907.00M | 445.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.08B | 1.01B | 2.17B | 1.87B | 3.12B | Total Assets |
| 48.00B | 53.13B | 57.28B | 57.08B | 11.63B | Total Debt |
| 0.00 | 2.36B | 11.34B | 12.52B | 1.13B | Net Debt |
| -1.08B | 1.35B | 9.16B | 10.65B | -1.99B | Total Liabilities |
| 18.98B | 19.47B | 22.85B | 23.03B | 4.12B | Stockholders Equity |
| 29.02B | 33.66B | 34.43B | 34.05B | 7.51B |
| Cash Flow | Free Cash Flow | |||
| 2.35B | 1.16B | 1.86B | 150.37M | 337.56M | Operating Cash Flow |
| 2.94B | 1.79B | 2.51B | 328.71M | 453.92M | Investing Cash Flow |
| -604.00M | -649.00M | -691.00M | -29.06B | -2.97B | Financing Cash Flow |
| -2.23B | -2.34B | -1.51B | 26.45B | 5.23B |
Sinch AB Technical Analysis
Positive
25.79
Price Trends
21.93
Positive
22.20
Positive
24.44
Positive
Market Momentum
0.98
Negative
65.08
Neutral
42.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SINCH, the sentiment is Positive. The current price of 25.79 is above the 20-day moving average (MA) of 22.40, above the 50-day MA of 21.93, and above the 200-day MA of 24.44, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 65.08 is Neutral, neither overbought nor oversold. The STOCH value of 42.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SINCH.
Sinch AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Performance Comparison
SE:SINCH
Sinch AB
24.95
2.10
9.19%
GB:0QE6
Tele2 AB
137.66
38.20
38.41%
TLSNF
Telia Company AB
3.58
1.28
55.65%
Sinch AB Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 9.09%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with multiple quarters of consistent growth, improved financial metrics, and successful strategic initiatives. However, challenges remain in cash flow management and specific regional performance, particularly in APAC.Q1-2025 Updates
Positive Updates
Consistent Organic Growth
Sinch achieved its third consecutive quarter of organic net sales growth with a 3% increase in net sales and 2% growth in gross profits year-over-year. All regions and product categories contributed to this growth.
Improved Financial Metrics
The company reported a gross margin of 34% and an adjusted EBITDA margin of 13%, with adjusted EBITDA increasing organically by 8% year-over-year.
Strengthened Balance Sheet
Sinch's net debt to adjusted EBITDA ratio improved to 1.4x from 2x in Q1 2024, providing greater financial flexibility for strategic investments.
AI Innovations and Efficiency Gains
Sinch launched new AI-related functionalities and achieved significant operational efficiencies, including a 65% resolution rate for customer inquiries via AI chatbots and a 20% improvement in live chat resolution times.
Positive Regional Performance
The Americas achieved a 4% organic growth in net sales, and EMEA delivered 7% organic growth in net sales. APAC saw a 5% organic increase in gross profit despite a decline in net sales.
Successful Enterprise Expansion
The number of large enterprise customers increased by 5% year-over-year, driven by cross-selling efforts and significant client wins in various sectors.
Negative Updates
Cash Flow Challenges
Cash flow from operations after investments was a negative SEK 104 million, impacted by a temporary working capital increase of SEK 370 million due to a cost optimization agreement.
APAC Revenue Decline
The APAC region experienced a 4% year-on-year organic decline in net sales, primarily due to a reduction in low-margin SMS revenue in India.
Company Guidance
During Sinch's Q1 2025 earnings call, CEO Laurinda Pang and CFO Jonas Dahlberg highlighted key financial metrics and strategic initiatives, demonstrating positive momentum. Net sales and gross profit both increased by 4% year-over-year, with organic growth at 3% for net sales and 2% for gross profit, marking the third consecutive quarter of organic growth. The company's performance metrics remained robust, with a gross margin of 34% and an adjusted EBITDA margin of 13%, aligning with midterm guidance. Adjusted EBITDA saw an 8% organic increase, benefiting from gross profit growth and reduced operating expenses. Cash conversion stood at 50% for the last 12 months, while cash flow from operations after investments recorded a negative SEK 104 million due to a temporary working capital increase. The balance sheet strengthened with a net debt to adjusted EBITDA ratio of 1.4x, improving from 2x in Q1 2024. The company also set a target of 7% to 9% organic growth in net sales and gross profit with adjusted EBITDA margins of 12% to 14% by 2027. Key growth drivers included enterprise expansion, self-serve capabilities, RCS, Email, and partner ecosystems.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.