Tempest Security AB (TSEC) AI Stock Analysis

Tempest Security AB

(Nasdaq OMX AB:TSEC)

Select Model

Rating:57Neutral

Price Target:SEK 10.50▲(1.94% Upside)

Action:reiterated

Date:10/09/26

The overall score of 57 reflects a company with strong cash flow generation and bullish technical momentum, but these are significantly offset by a fundamentally weak income statement with near-zero margins and a high P/E ratio. The primary risk is the sustainability of the business model given the collapse in gross margins, while the primary strength is the impressive conversion of revenue to free cash flow. The stock's recent price strength is not fully supported by its underlying profitability.

Positive Factors

Strong Revenue GrowthThe sharp TTM revenue increase indicates materially stronger business activity and expanding sales compared with prior periods. If sustained, this larger revenue base can improve operating leverage, support reinvestment, and provide a foundation for more durable earnings growth over the next several quarters.

Negative Factors

Thin Profit MarginsNear-break-even gross and operating profitability leave limited protection if costs rise or revenue growth moderates. Thin margins also reduce the amount of each sales krona available for reinvestment, debt reduction, and resilience, making sustained earnings improvement harder to secure.

Tempest Security AB (TSEC) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 104.84M
Dividend Yield: ―
Average Volume (3M): 16.92K
Price to Earnings (P/E): 39.0
Beta (1Y): 0.22
Revenue Growth: 16.19%
EPS Growth: ―
Country: Sweden
Employees: 659
Sector: General
Sector Strength: 55
Industry: Security & Protection Services

Tempest Security AB Business Overview & Revenue Model

Company Description

Tempest Security AB (publ) provides a full spectrum of global security and protection services. Their offerings include personalized security, such as close protection for executives, secure travel logistics, and residential guarding. The company als...

How the Company Makes Money

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Tempest Security AB Financial Statement Overview

Summary

Financial performance is mixed. Cash flow is a major strength, with operating cash flow surging to SEK 31.9M and free cash flow conversion exceeding 98%. However, the income statement reveals a near-zero gross margin (0.3%) despite strong revenue growth, and the balance sheet, while improving, remains highly leveraged with a debt-to-equity ratio of 1.77. The score reflects strong cash generation offset by fragile profitability and high leverage.

Income Statement

35Negative

Balance Sheet

40Negative

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	600.74M	578.23M	485.63M	438.08M	424.33M	339.66M
Gross Profit	1.85M	-20.79M	46.03M	401.33M	368.44M	300.64M
EBITDA	13.05M	10.47M	403.00K	21.05M	22.87M	-3.01M
Net Income	2.69M	-11.71M	-51.39M	3.69M	9.87M	-12.58M
Balance Sheet
Total Assets	208.20M	237.10M	208.71M	241.90M	235.23M	196.55M
Cash, Cash Equivalents and Short-Term Investments	11.11M	18.13M	15.19M	21.16M	21.19M	26.60M
Total Debt	36.04M	54.77M	36.95M	39.13M	45.25M	35.55M
Total Liabilities	187.85M	218.43M	177.24M	159.79M	157.01M	145.12M
Stockholders Equity	20.34M	18.67M	31.46M	80.00M	77.28M	52.91M
Cash Flow
Free Cash Flow	31.23M	-2.33M	8.97M	16.26M	5.67M	1.65M
Operating Cash Flow	31.86M	-2.02M	9.41M	19.09M	6.77M	3.78M
Investing Cash Flow	-889.00K	149.00K	-3.01M	-1.44M	-21.86M	-31.06M
Financing Cash Flow	-31.67M	5.01M	-12.74M	-17.50M	9.35M	24.80M

Tempest Security AB Technical Analysis

Technical Analysis SentimentNegative

Last Price10.30

Price Trends

50DMA10.39Negative

100DMA10.74Negative

200DMA10.66Negative

Market Momentum

MACD-0.11Positive

RSI36.68Neutral

STOCH6.15Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TSEC, the sentiment is Negative. The current price of 10.30 is below the 20-day moving average (MA) of 11.12, below the 50-day MA of 10.39, and below the 200-day MA of 10.66, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 6.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:TSEC.

Tempest Security AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

SE:TSEC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SE:ASSA.B	79Outperform	SEK 436.65B	25.76	15.41%	1.56%	0.27%	15.51%
SE:LOOMIS	70Outperform	SEK 36.06B	18.44	18.22%	2.69%	0.55%	14.96%
SE:SGG	63Neutral	SEK 491.19M	12.21	6.72%	―	4.44%	―
SE:SECU.B	61Neutral	SEK 89.03B	12.59	17.04%	3.15%	-4.70%	40.25%
SE:VSURE	61Neutral	EUR 11.25B	-93.62	―	0.93%	9.90%	-38.94%
SE:TSEC	57Neutral	SEK 104.84M	39.00	―	―	16.19%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

SE:TSEC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:TSEC	Tempest Security AB	10.00	-0.40	-3.85%
SE:ASSA.B	Assa Abloy AB (UK)	393.10	42.69	12.18%
SE:LOOMIS	Loomis AB	557.00	210.42	60.71%
SE:SECU.B	Securitas AB	155.40	22.80	17.20%
SE:SGG	Sensys Gatso Group AB	42.60	5.30	14.21%
SE:VSURE	Verisure Plc	10.86	-4.42	-28.94%

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.

Date of analysis: Oct 09, 2026

Tempest Security AB AI Stock Analysis