Gapwaves (OM:GAPW B) - Share price, News & Analysis

GAPW B fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

GAPW B Stock Overview

Gapwaves AB (publ) provides waveguide and antenna products.

Risk Analysis

Earnings have declined by 2.3% per year over past 5 years

Shareholders have been diluted in the past year

Does not have meaningful revenue (SEK41M)

Does not have a meaningful market cap (SEK838M)

Gapwaves Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Gapwaves
Historical stock prices
Current Share Price	kr27.30
52 Week High	kr74.90
52 Week Low	kr24.00
Beta	1.06
1 Month Change	-23.21%
3 Month Change	-38.79%
1 Year Change	-51.77%
3 Year Change	36.77%
5 Year Change	95.00%
Change since IPO	259.21%

Shareholder Returns

	GAPW B	SE Communications	SE Market
7D	5.4%	4.1%	5.6%
1Y	-51.8%	-26.6%	-11.6%

Return vs Industry: GAPW B underperformed the Swedish Communications industry which returned -27.8% over the past year.

Return vs Market: GAPW B underperformed the Swedish Market which returned -15.8% over the past year.

Price Volatility

Is GAPW B's price volatile compared to industry and market?
GAPW B volatility
GAPW B Average Weekly Movement	8.5%
Communications Industry Average Movement	7.4%
Market Average Movement	8.0%
10% most volatile stocks in SE Market	12.9%
10% least volatile stocks in SE Market	5.1%

Stable Share Price: GAPW B is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GAPW B's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2011	26	Lars-Inge Sjoqvist	https://www.gapwaves.com

Gapwaves AB (publ) provides waveguide and antenna products. It offers radar antennas, 5G phased arrays, flat panel antennas, flange adapters, and waveguide filters. The company was incorporated in 2011 and is headquartered in Gothenburg, Sweden.

Gapwaves Fundamentals Summary

How do Gapwaves's earnings and revenue compare to its market cap?
GAPW B fundamental statistics
Market Cap	kr838.42m
Earnings (TTM)	-kr32.26m
Revenue (TTM)	kr41.37m

20.3x

P/S Ratio

-26.0x

P/E Ratio

Is GAPW B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GAPW B income statement (TTM)
Revenue	kr41.37m
Cost of Revenue	kr39.23m
Gross Profit	kr2.14m
Other Expenses	kr34.40m
Earnings	-kr32.26m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 25, 2022

Earnings per share (EPS)	-1.05
Gross Margin	5.17%
Net Profit Margin	-77.99%
Debt/Equity Ratio	0.7%

How did GAPW B perform over the long term?

See historical performance and comparison

Valuation

Is Gapwaves undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

3.84x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GAPW B's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate GAPW B's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: GAPW B is unprofitable, so we can't compare its PE Ratio to the Swedish Communications industry average.

PE vs Market: GAPW B is unprofitable, so we can't compare its PE Ratio to the Swedish market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GAPW B's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: GAPW B is overvalued based on its PB Ratio (3.8x) compared to the SE Communications industry average (2.4x).

Future Growth

How is Gapwaves forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.3%

Forecasted Tech industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Gapwaves has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Gapwaves performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-2.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GAPW B is currently unprofitable.

Growing Profit Margin: GAPW B is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: GAPW B is unprofitable, and losses have increased over the past 5 years at a rate of 2.3% per year.

Accelerating Growth: Unable to compare GAPW B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GAPW B is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (75.4%).

Return on Equity

High ROE: GAPW B has a negative Return on Equity (-14.78%), as it is currently unprofitable.

Financial Health

How is Gapwaves's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: GAPW B's short term assets (SEK215.7M) exceed its short term liabilities (SEK20.2M).

Long Term Liabilities: GAPW B's short term assets (SEK215.7M) exceed its long term liabilities (SEK813.0K).

Debt to Equity History and Analysis

Debt Level: GAPW B has more cash than its total debt.

Reducing Debt: GAPW B's debt to equity ratio has reduced from 20.8% to 0.7% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GAPW B has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: GAPW B has sufficient cash runway for 2.8 years if free cash flow continues to reduce at historical rates of 15.2% each year.

Dividend

What is Gapwaves's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate GAPW B's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GAPW B's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GAPW B's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GAPW B's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GAPW B has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Tech industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average board tenure

CEO

Lars-Inge Sjoqvist (63 yo)

8.33yrs

Tenure

Mr. Lars-Inge Sjöqvist serves as Chief Executive Officer of Gapwaves AB (publ) since 2014 and was its Director since 2014 until April 2019. Mr. Sjöqvist served as the Chief Executive Officer of Semcon AB....

Board Members

Experienced Board: GAPW B's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: GAPW B insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31