SEALSQ Corp (LAES) AI Stock Analysis

• Market Cap: $333.78M
• Dividend Yield: N/A
• Average Volume (3M): 14.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: -18.12%
• EPS Growth: -263.10%
• Country: US
• Employees: 67
• Sector: Technology
• Sector Strength: 51
• Industry: Semiconductors
• EPS (TTM): -0.68
• Shares Outstanding: 104,508,900
• 10 Day Avg. Volume: 12,316,081
• 30 Day Avg. Volume: 14,297,357
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.32
• Price to Cash Flow (P/CF): N/A
• 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: $6.00
• Price Target Upside: 101.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

LAES's overall score reflects significant financial challenges, marked by negative profitability and liquidity issues, which weigh heavily on its financial health. Despite some technical indicators suggesting short-term upward momentum, the company's negative valuation metrics highlight ongoing financial instability. The stock may be of interest to investors with a high risk tolerance, but caution is advised due to underlying financial weaknesses.

Positive Factors

Financial performance

LAES ended 2024 with ~$85M in cash, significantly improving from $18.9M earlier, and eliminated ~$10M in convertible debt, indicating a strong financial position.

Technological advancements

LAES shares rallied to a high of $11, from ~$0.50, after Google announced Willow, an advanced quantum computing device, highlighting the importance of LAES' next-generation security chips.

Negative Factors

Product demand

Lower demand for legacy products reflects elevated customer inventory levels as purchasing normalizes and customer preparation for adoption of next-generation chips.

Revenue performance

2024 revenue was soft due to market overcorrection following pandemic distortions and before new product availability, with preliminary revenue of $11M, down 63.4% year-over-year.

SEALSQ Corp Business Overview & Revenue Model

Company Description

SEALSQ Corp develops and sells semiconductor chips for private and public sectors. The company offers semiconductors and smart card reader chips; identity provisioning services; and managed PKI for IoT solutions. It serves consumer electronics, aerospace and military, satellite and telecommunications, smart energy and smart building, smart industries, logistics, medical, and consumer industries. SEALSQ Corp was incorporated in 2022 and is based in Cointrin, Switzerland. SEALSQ Corp is a subsidiary of WISeKey International Holding AG.

How the Company Makes Money

SEALSQ Corp generates revenue primarily through the sale of its secure microcontroller and secure hardware products. The company earns money by providing these high-security components to industries that require stringent security standards, such as finance, telecommunications, and government sectors. Key revenue streams include direct product sales, licensing agreements, and potentially long-term contracts with device manufacturers and service providers. Significant partnerships with major technology companies and infrastructure providers may also contribute to SEALSQ Corp's earnings by expanding its market reach and integrating its security solutions into broader technology ecosystems.

SEALSQ Corp Financial Statement Overview

Summary

SEALSQ Corp is experiencing growth in revenue but faces significant profitability and liquidity challenges. The high leverage, negative net income, and cash flow issues suggest potential financial instability. The company must focus on improving operational efficiencies and managing debt to enhance its financial health.

Income Statement

The company has shown a mixed performance in terms of revenue growth, with a substantial increase in revenue from 2022 to 2023. However, profitability metrics such as Net Profit Margin and EBIT margin are negative for 2023, indicating challenges in managing costs. The gross profit margin is relatively healthy, but the overall net income has turned negative, indicating potential operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to significant leverage, which poses a financial risk. Although stockholders' equity has improved from negative to positive, it remains low. The equity ratio signifies a reliance on debt financing, suggesting potential vulnerabilities in financial stability.

Cash Flow

The cash flow statement shows negative operating and free cash flows, indicating liquidity challenges. The negative free cash flow growth rate and low cash flow ratios highlight the company's struggle to generate cash from operations, which could impact its ability to finance future operations without external funding.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.72M	30.06M	23.20M	17.00M	14.32M
	Gross Profit
8.12M	14.05M	9.80M	7.15M	5.43M
	EBIT
-11.92M	-4.14M	2.58M	-7.70M	-11.26M
	EBITDA
-10.83M	-1.49M	3.71M	-3.41M	-6.75M
	Net Income Common Stockholders
-14.80M	-3.27M	5.77M	-7.49M	-11.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.06M	6.89M	4.06M	2.06M	1.83M
	Total Assets
11.84M	27.93M	21.66M	11.84M	13.43M
	Total Debt
17.39M	15.38M	14.12M	17.39M	14.31M
	Net Debt
15.33M	8.48M	10.06M	15.33M	12.48M
	Total Liabilities
25.41M	22.90M	21.45M	25.41M	22.81M
	Stockholders Equity
-13.56M	5.03M	212.00K	-13.56M	-9.37M
Cash Flow		Free Cash Flow
-9.10M	-6.06M	-1.85M	-3.63M	-3.08M
	Operating Cash Flow
-7.26M	-3.04M	-1.55M	-3.59M	-3.02M
	Investing Cash Flow
-1.84M	-3.02M	-299.00K	-36.00K	163.00K
	Financing Cash Flow
28.01M	8.92M	3.75M	3.69M	2.81M

SEALSQ Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.98
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAES, the sentiment is Positive. The current price of 2.98 is above the 20-day moving average (MA) of 2.94, below the 50-day MA of 3.46, and above the 200-day MA of 1.73, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 42.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAES.

SEALSQ Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTNT	79 Outperform	$75.86B	43.65	338.74%	―	12.27%	54.69%
ZS	73 Outperform	$31.75B	―	-1.21%	―	27.77%	89.39%
CRWD	73 Outperform	$89.79B	721.64	-0.69%	―	29.39%	-119.62%
OKTA	69 Neutral	$19.75B	1,940.96	0.46%	―	15.33%	―
CYBR	67 Neutral	$17.40B	1,777.39	-5.91%	―	33.10%	-20.31%
Sector *	58 Neutral	$21.97B	10.49	-18.75%	2.40%	4.80%	-25.17%
LAES	45 Neutral	$333.78M	―	-52.38%	―	-18.12%	-263.10%