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SEALSQ Corp (LAES)
NASDAQ:LAES
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SEALSQ Corp
(NASDAQ:LAES)
Rating:51Neutral
Price Target:
$3.50
▲(8.70%Upside)
Positive Factors
Financial Position
LAES ended with $120M of cash, indicating strong capitalization and financial health.
Product Development
The company is channeling resources into the development and deployment of advanced post-quantum semiconductors, which are anticipated to spur significant growth.
Strategic Acquisitions
The acquisition of IC'ALPS is expected to close, which could significantly boost revenue growth.
Negative Factors
Earnings Decline
Full-year revenue was down 63.5% year-over-year and below the original $12.5M estimate.
Market Conditions
Revenue was soft due to market overcorrection following pandemic distortions and before new product availability, with preliminary revenue down 63.4% year-over-year.
Revenue Performance
Preliminary revenue was reported below estimates, flat compared to the previous year, indicating a slower than expected start to the year.
SEALSQ Corp (LAES) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$470.86M
Dividend YieldN/A
Average Volume (3M)10.73M
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-61.04%
EPS Growth-191.70%
CountryUS
Employees67
SectorTechnology
Sector Strength96
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.28
Shares Outstanding138,731,740
10 Day Avg. Volume12,593,226
30 Day Avg. Volume10,727,060
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)775.06
Price to Sales (P/S)0.00
P/FCF Ratio-88.67
Enterprise Value/Market Cap0.37
Enterprise Value/Revenue1.84
Enterprise Value/Gross Profit40.99
Enterprise Value/Ebitda-6.49
Forecast
1Y Price Target
$6.00Price Target Upside86.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
SEALSQ Corp Business Overview & Revenue Model
Company DescriptionSEALSQ Corp (LAES) is a technology company specializing in advanced semiconductor solutions and cybersecurity products. The company focuses on providing secure element and microprocessor solutions for various sectors, including automotive, industrial, and consumer electronics. SEALSQ's core products include secure microcontrollers and embedded security systems designed to protect data and devices from unauthorized access and cyber threats.
How the Company Makes MoneySEALSQ Corp generates revenue primarily through the sale of its secure microcontroller and semiconductor products to original equipment manufacturers (OEMs) and other clients in diverse industries. The company leverages its expertise in cybersecurity to offer embedded security solutions, earning income by licensing its technology and providing ongoing support and updates. SEALSQ may also engage in strategic partnerships to enhance its market presence and expand its customer base, contributing to its revenue growth. These partnerships could involve collaborative product development or co-marketing initiatives with other technology firms.
SEALSQ Corp Earnings Call Summary
Earnings Call Date:Mar 20, 2025
(Q4-2024)
| % Change Since: 3.87%|
Next Earnings Date:Sep 15, 2025
Earnings Call Sentiment Neutral
While SealSQ faced significant revenue decline and a net loss due to the transition to new technology and market normalization, they are in a strong financial position with substantial cash reserves and no debt. Their strategic investments and acquisitions in post-quantum technology position them well for future growth, with significant revenue increases anticipated in 2025.Q4-2024 Updates
Positive Updates
Strong Financial Position
SealSQ ended the year with a strong balance sheet, having over $90 million in cash reserves and no bank debt or convertible loans, enhancing their ability to fund growth without dilution risks.
Strategic Investments and Acquisitions
SealSQ invested $5 million in 2024 and plans another $7.2 million in 2025 to scale post-quantum security technology. They also raised over $80 million in funding and are planning strategic acquisitions, such as IC’ALPS and investments in startups like Colibri.
Market Leadership Potential in Post-Quantum Security
The post-quantum cybersecurity market is projected to grow significantly, with a CAGR of 44.2%, and SealSQ is well-positioned with high entry barriers and proprietary technology.
Revenue Growth Outlook for 2025
SealSQ anticipates significant revenue growth in 2025 due to new sources of chip revenue, chip personalization services, and consolidation of planned investments.
Negative Updates
Significant Revenue Decline
Revenue fell from $30 million in 2023 to $11 million in 2024, reflecting the transition from traditional semiconductors to quantum-resistant chips and the impact of market normalization.
Net Loss for 2024
SealSQ reported a net loss of $21 million for 2024, primarily due to the migration from traditional semiconductor products, leading to reduced demand.
Customer Inventory Challenges
Excess inventory accumulation by customers resulted in lower 2024 order volumes as clients utilized existing stock before making new purchasing commitments.
Company Guidance
During the SealSQ Full Year 2024 Financial Results Earnings Conference Call, CEO Carlos Moreira and CFO John O'Hara outlined several key metrics and strategic initiatives. SealSQ reported a 2024 revenue of $11 million, down from $30 million in 2023, due to a transition from traditional semiconductors to next-generation quantum-resistant chips. The company raised over $80 million in funding, with cash reserves peaking at over $90 million at the start of 2025. Research and development spending increased by 26% year-over-year, with $5 million invested in 2024 and $7.2 million planned for 2025. SealSQ's pipeline for the next three years stands at $93 million, with anticipated significant revenue growth in 2025, driven by post-quantum security solutions and strategic acquisitions. The post-quantum cybersecurity market is expected to grow from $302.5 million in 2024 to $1.8 billion by 2025, with a CAGR of 44.2%. SealSQ aims to capitalize on this growth by launching new products in Q4 2025, which are expected to have a full impact by 2026.SEALSQ Corp Financial Statement Overview
Summary
SEALSQ Corp faces financial challenges with declining revenues, persistent losses, and reliance on external funding. However, liquidity is supported by a strong cash position.Income Statement
SEALSQ Corp's income statement reveals significant challenges, with declining revenues year-over-year and a consistent pattern of negative net income. The gross profit margin has deteriorated, indicating higher cost pressures or inefficiencies. The negative EBIT and EBITDA margins highlight operational difficulties. The revenue growth rate is negative, suggesting a decline in sales activity.40
Negative
Balance Sheet
The balance sheet shows a strong cash position with a positive cash balance exceeding total debt, resulting in a negative net debt. However, the debt-to-equity ratio is concerning due to high liabilities compared to equity. ROE is not meaningful due to negative net income and fluctuating equity values. The equity ratio is modest, indicating a balanced asset structure.50
Neutral
Cash Flow
Cash flow analysis reflects negative free cash flow and operating cash flow, suggesting liquidity constraints. The company relies heavily on financing activities to support operations, as seen in the positive financing cash flow. Free cash flow to net income ratio is negative, indicating cash generation issues relative to reported losses.45
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.98M | 30.06M | 23.20M | 17.00M | 14.32M |
| Gross Profit | 3.73M | 14.05M | 9.80M | 7.15M | 5.43M |
| EBITDA | -15.93M | -1.49M | 3.71M | -3.41M | -6.75M |
| Net Income | -21.20M | -3.27M | 5.77M | -7.49M | -11.87M |
Balance Sheet | |||||
| Total Assets | 97.57M | 27.93M | 21.66M | 11.84M | 13.43M |
| Cash, Cash Equivalents and Short-Term Investments | 84.62M | 6.89M | 4.06M | 2.06M | 1.83M |
| Total Debt | 8.88M | 15.38M | 14.12M | 17.39M | 14.31M |
| Total Liabilities | 19.70M | 22.90M | 21.45M | 25.41M | 22.81M |
| Stockholders Equity | 77.86M | 5.03M | 212.00K | -13.56M | -9.37M |
Cash Flow | |||||
| Free Cash Flow | -11.78M | -6.06M | -1.85M | -3.63M | -3.08M |
| Operating Cash Flow | -11.21M | -3.04M | -1.55M | -3.59M | -3.02M |
| Investing Cash Flow | -571.00K | -3.02M | -299.00K | -36.00K | 163.00K |
| Financing Cash Flow | 89.48M | 8.92M | 3.75M | 3.69M | 2.81M |
SEALSQ Corp Technical Analysis
Negative
3.22
Price Trends
3.66
Negative
3.16
Negative
2.83
Positive
Market Momentum
-0.13
Positive
36.95
Neutral
4.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAES, the sentiment is Negative. The current price of 3.22 is below the 20-day moving average (MA) of 3.61, below the 50-day MA of 3.66, and above the 200-day MA of 2.83, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.95 is Neutral, neither overbought nor oversold. The STOCH value of 4.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LAES.
SEALSQ Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥230.42B | 14.66 | 7.50% | 2.60% | 9.31% | 5.75% | |
67 Neutral | $305.56M | 21.02 | 23.09% | 6.33% | -9.22% | -13.57% | |
60 Neutral | $396.69M | ― | -1369.57% | ― | 14.68% | 20.20% | |
59 Neutral | $622.52M | 19.55 | -3.34% | ― | -10.95% | -111.40% | |
59 Neutral | $344.48M | ― | -4.71% | ― | -4.77% | 84.82% | |
57 Neutral | $439.27M | ― | -375.37% | ― | ― | -10774.57% | |
51 Neutral | $470.86M | ― | -52.38% | ― | -61.04% | -191.70% |
* Technology Sector Average
Performance Comparison
LAES
SEALSQ Corp
3.08
2.43
373.85%
AEHR
Aehr Test Systems
18.78
0.12
0.64%
NVEC
NVE
64.24
-15.90
-19.84%
AIP
Arteris
10.60
2.54
31.51%
BZAI
Blaize Holdings
4.18
-7.02
-62.68%
XPER
Xperi Inc
6.43
-1.55
-19.42%
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.