Safeguard Scientifics (SFES) AI Stock Analysis

• Market Cap: $15.72M
• Dividend Yield: N/A
• Average Volume (3M): 4.86K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.22
• Revenue Growth: N/A
• EPS Growth: -3.54%
• Country: US
• Employees: 33
• Sector: Financial
• Sector Strength: 85
• Industry: Asset Management
• EPS (TTM): -0.62
• Shares Outstanding: 16,722,994
• 10 Day Avg. Volume: 2,661
• 30 Day Avg. Volume: 4,860
• PEG Ratio: -0.12
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.76
• 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

The overall score is primarily impacted by the weak financial performance, characterized by a lack of revenue and profitability, and negative cash flow. Technical analysis provides some positive momentum, but the near-overbought indicators suggest caution. Valuation remains unattractive due to negative earnings and no dividend yield.

Safeguard Scientifics Business Overview & Revenue Model

Company Description

Safeguard Scientifics, Inc. no longer investing. It is a private equity and venture capital firm specializing in expansion financings, growth capital, management buyouts, recapitalizations, industry consolidations, corporate spinouts, growth stage, and early stage financings. It initially invests in a Series A-C round and opportunistically in a seed round. The firm prefers to make investments in companies engaged in the technology, financial services, and healthcare sector. Within the technology sector, it invests in software as a service, adtech / digital media, Internet of Everything, enhanced security, predictive analytics, machine learning, artificial intelligence, enterprise software, technology enabled services, internet/new media, financial technology, cloud, mobile, social, big data, in memory, and selected business services with capital requirements of up to $25 million. Within healthcare sector, the firm invests in molecular and point-of-care diagnostics, medical devices, regenerative medicine, medical technology, digital health, healthcare technology, specialty pharmaceuticals, and selected healthcare services. It invests throughout the United States with a focus on Mid-Atlantic region, and Southeastern Canada. The firm primarily invests between $5 million and $25 million in growth equity financing and between $5 million and $10 million in early-stage financing. It typically invests in the capital structures including owner financed and bootstrapped companies, corporate division or business unit, and venture capital-backed seeking a growth partner. The firm prefers to be the largest shareholder in its portfolio companies, with ownership in the range of 20 percent to 50 percent. However, it may occasionally take a majority or smaller stake in its portfolio companies. It prefers to invest in companies having proprietary technology and intellectual property. The firm prefers to take a Board seat in its portfolio companies. The company was founded in 1953 as Lancaster Corporation and changed its name to Safeguard Scientifics, Inc. in 1981. Safeguard Scientifics, Inc. is based in Radnor, Pennsylvania with additional office in Weston, Massachusetts.

How the Company Makes Money

Safeguard Scientifics makes money primarily through the capital appreciation of its investments in portfolio companies. The company's revenue model involves acquiring equity stakes in healthcare, financial services, and digital media companies, and then working closely with these businesses to enhance their value. Safeguard's earnings are realized through exits, such as mergers, acquisitions, or public offerings, where they sell their equity stakes at a profit. Additionally, the company may earn revenue from management fees associated with its investment activities. Significant partnerships with entrepreneurs and other investors contribute to its ability to identify promising investment opportunities and optimize the growth potential of its portfolio.

Safeguard Scientifics Financial Statement Overview

Summary

Safeguard Scientifics is facing significant challenges across all financial verticals. The lack of revenue and profitability is a major concern, as reflected in the negative income statement metrics. While the balance sheet shows low leverage, diminishing equity and assets raise stability concerns. The cash flow statement highlights cash generation issues, with consistent negative free cash flow. Overall, the financial health appears to be weak, with critical areas needing strategic improvement.

Income Statement

The company has consistently had zero revenue over the years, leading to negative gross profit, EBIT, and EBITDA. The net income has also been negative, indicating a lack of profitability. Revenue growth is non-existent due to the absence of revenue, resulting in poor overall performance on the income statement.

Balance Sheet

The company has maintained a relatively low debt-to-equity ratio over the years, indicating low leverage. However, the continuous decline in stockholders' equity suggests potential risks. The equity ratio is relatively healthy, but the declining asset base and shrinking equity are concerning.

Cash Flow

There is a consistent negative free cash flow, and the operating cash flow has been negative across all reported years, reflecting poor cash generation capabilities. The lack of free cash flow growth and negative operating cash flow to net income ratios indicate cash flow challenges.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-319.00K	-319.00K	-271.00K	-229.00K	-311.00K	-1.07M
	EBIT
-4.93M	-5.68M	-4.78M	-7.15M	-9.47M	-9.98M
	EBITDA
-5.64M	-9.51M	-13.99M	27.23M	-37.30M	69.65M
	Net Income Common Stockholders
-7.19M	-9.83M	-14.26M	27.00M	-37.62M	54.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.76M	9.52M	20.17M	24.76M	15.60M	25.05M
	Total Assets
54.03M	22.84M	37.69M	54.03M	69.03M	107.58M
	Total Debt
2.05M	1.25M	1.68M	2.05M	2.38M	2.78M
	Net Debt
-22.71M	-8.25M	-11.68M	-22.71M	-13.22M	-22.27M
	Total Liabilities
3.46M	2.86M	3.12M	3.46M	6.16M	5.84M
	Stockholders Equity
50.57M	19.98M	34.58M	50.57M	62.88M	101.74M
Cash Flow		Free Cash Flow
-3.60M	-3.31M	-3.26M	-8.15M	-8.14M	-19.97M
	Operating Cash Flow
-3.60M	-3.31M	-3.26M	-8.15M	-8.14M	-19.97M
	Investing Cash Flow
2.47M	5.72M	-4.66M	58.11M	-1.27M	126.30M
	Financing Cash Flow
-5.93M	-6.25M	-3.49M	-40.80M	-40.00K	-89.48M

Safeguard Scientifics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFES, the sentiment is Positive. The current price of 0.94 is above the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.86, and above the 200-day MA of 0.88, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 66.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFES.

Safeguard Scientifics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.75B	9.93	7.86%	17015.07%	12.19%	-5.92%
MAAS	49 Neutral	$16.72M	―		―	918.11%	-230.11%
SFES	42 Neutral	$15.72M	―	-69.68%	―	―	-3.54%
PWM	42 Neutral	$13.58M	―		―	―	―
RMCO	41 Neutral	$16.15M	108.82	-0.88%	―	65.21%	98.07%
CWD	38 Underperform	$5.39M	―	-5013.15%	―	-42.95%	-50.40%
BENF	34 Underperform	$2.69M	―	-538.85%	―	78.84%	97.65%