SysGroup (SYS) AI Stock Analysis

• Market Cap: £16.23M
• Dividend Yield: N/A
• Average Volume (3M): 75.78K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.20
• Revenue Growth: 2.89%
• EPS Growth: -804.62%
• Country: UK
• Employees: 111
• Sector: Technology
• Sector Strength: 45
• Industry: Software
• EPS (TTM): -0.12
• Shares Outstanding: 83,253,700
• 10 Day Avg. Volume: 24,144
• 30 Day Avg. Volume: 75,779
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.71
• Price to Cash Flow (P/CF): 55.10
• P/FCF Ratio: 0.00
• 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

SysGroup faces significant challenges with declining profitability and cash flow issues, as well as a bearish technical outlook. While corporate leadership's share purchase indicates confidence, the stock suffers from poor financial performance and valuation concerns, leading to a below-average overall score.

SysGroup Business Overview & Revenue Model

Company Description

SysGroup (SYS) is a leading managed IT services and cloud hosting provider based in the United Kingdom. The company operates primarily in the IT services sector, offering a comprehensive suite of solutions including managed IT, cloud hosting, IT security services, and consultancy. SysGroup is dedicated to helping businesses optimize their IT infrastructure and operations through tailor-made services that enhance efficiency and security.

How the Company Makes Money

SysGroup makes money primarily through offering managed IT services and cloud hosting solutions. The company's revenue model focuses on long-term service contracts with businesses that require consistent IT support and infrastructure management. Key revenue streams include subscription fees for managed services, consultancy fees for IT strategy development, and sales from IT security solutions. SysGroup's financial performance is further supported by strategic partnerships with leading technology providers, which enable them to offer cutting-edge solutions and maintain competitive pricing. Additionally, SysGroup benefits from the growing demand for cloud and IT security services, driven by digital transformation trends across various industries.

SysGroup Financial Statement Overview

Summary

SysGroup faces challenges with declining profitability and cash flow generation, despite growth in revenue. The balance sheet shows moderate leverage but declining equity, pointing to potential financial instability. Overall, the company needs to address its profitability and cash flow issues to improve its financial health.

Income Statement

SysGroup has shown a notable revenue growth over the years, however, profitability is a concern with declining margins and a significant net loss in the most recent period. The gross profit margin decreased slightly in the latest year, and the company posted negative EBIT and EBITDA margins, indicating operational challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, suggesting reasonable leverage. However, the decline in stockholders' equity and total assets indicates weakening financial stability. The equity ratio has decreased, reflecting lower financial flexibility.

Cash Flow

SysGroup's cash flow position has weakened, with operating cash flow dropping significantly. Free cash flow turned negative, indicating potential difficulties in generating cash internally. The operating cash flow to net income ratio has become unfavorable, highlighting cash flow management issues.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
22.71M	21.65M	14.75M	18.13M	19.49M
	Gross Profit
10.40M	11.10M	8.92M	10.50M	11.20M
	EBIT
-6.00M	378.00K	725.00K	313.00K	-28.00K
	EBITDA
-3.76M	2.44M	2.62M	2.41M	2.14M
	Net Income Common Stockholders
-5.90M	-7.00K	451.00K	240.00K	-122.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.94M	4.19M	4.13M	3.47M	3.04M
	Total Assets
30.45M	39.12M	27.56M	27.33M	29.33M
	Total Debt
5.34M	5.51M	1.14M	1.59M	2.11M
	Net Debt
3.40M	1.32M	-2.99M	-1.88M	-930.00K
	Total Liabilities
15.68M	17.69M	6.30M	6.71M	9.26M
	Stockholders Equity
14.77M	21.43M	21.26M	20.61M	20.07M
Cash Flow		Free Cash Flow
-369.00K	2.30M	1.42M	2.13M	1.39M
	Operating Cash Flow
190.00K	2.72M	2.31M	2.70M	1.93M
	Investing Cash Flow
-559.00K	-5.80M	-891.00K	-1.55M	-1.59M
	Financing Cash Flow
-1.87M	3.14M	-758.00K	-713.00K	-677.00K

SysGroup Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.50
• 50DMA: Positive
• 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 GB:SYS, the sentiment is Negative. The current price of 19.5 is below the 20-day moving average (MA) of 21.20, above the 50-day MA of 19.05, and below the 200-day MA of 28.43, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 36.50 is Neutral, neither overbought nor oversold. The STOCH value of 22.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SYS.

SysGroup Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$21.35B	9.96	-19.72%	2.38%	5.03%	-22.83%
SYS	44 Neutral	£16.23M	―	-26.77%	―	2.89%	-804.62%
SYN	38 Underperform	£4.05M	―	-27.30%	―	-54.20%	75.00%

SysGroup Corporate Events

SysGroup PLC Announces Change in Major Shareholder Voting Rights

SysGroup PLC has announced a change in its major holdings, with Canaccord Genuity Group Inc., based in Vancouver, Canada, adjusting its voting rights in the company. The notification indicates that Canaccord Genuity Group Inc. now holds 9.6092% of the voting rights, down from a previous 10.9752%, involving 8,000,000 shares. This change could potentially affect SysGroup’s governance and decision-making dynamics, impacting stakeholders concerned with voting power and shareholder influence.

SysGroup Executive Chairman Increases Stake with Significant Share Purchase

SysGroup announced that its Executive Chairman, Heejae Chae, has purchased 800,000 ordinary shares, increasing his stake to approximately 10.39% of the company’s issued share capital. This move may indicate confidence in SysGroup’s strategic direction and potential growth in the AI and data solutions sector, reflecting positively on the company’s market positioning.

SysGroup Announces Change in Major Holdings by Canaccord Genuity

SysGroup PLC has announced a change in its major holdings as Canaccord Genuity Group Inc., a financial services company based in Vancouver, Canada, has adjusted its voting rights in SysGroup. The notification indicates a slight decrease in Canaccord’s voting rights percentage from 11.3959% to 10.9752%. This change reflects an acquisition or disposal of voting rights and could impact SysGroup’s shareholder dynamics.

SysGroup Maintains Voting Rights Amid Share Option Exercise

SysGroup plc announced the exercise of share options by former CFO Martin Audcent, involving the transfer of 300,000 ordinary shares from treasury, which does not affect the company’s total voting rights. This announcement reflects SysGroup’s ongoing financial and corporate activities, maintaining stability in its share capital while possibly influencing stakeholder interest calculations under regulatory guidelines.