SuperCom (SPCB, Financial) has entered into an agreement with a well-established electronic monitoring service provider in Canada. This provider, boasting over 25 years in the industry, oversees GPS monitoring systems for various justice and public safety organizations. The collaboration aims to integrate SuperCom's PureSecurity Suite into the provider's existing systems. This transition will potentially lead to the replacement of numerous current GPS units with SuperCom’s advanced GPS tracking technology.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for SuperCom Ltd (SPCB, Financial) is $14.00 with a high estimate of $18.00 and a low estimate of $10.00. The average target implies an upside of 114.80% from the current price of $6.52. More detailed estimate data can be found on the SuperCom Ltd (SPCB) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, SuperCom Ltd's (SPCB, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SuperCom Ltd (SPCB, Financial) in one year is $3.28, suggesting a downside of 49.67% from the current price of $6.5176. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SuperCom Ltd (SPCB) Summary page.
SPCB Key Business Developments
Release Date: April 28, 2025
- Revenue: $27.6 million for 2024, a record over the past seven years and a 134% increase from 2020.
- Gross Profit: $13.4 million, a 31% increase year over year.
- Gross Margin: Expanded to 48.4%, up nearly 10 percentage points from 2023.
- Net Income: Positive GAAP net income of $661,000 compared to a $4 million net loss in 2023.
- EBITDA: $6.3 million, up 31% year over year.
- Operating Cash Flow: Reduced to $1.3 million in 2024 from $2.4 million in 2023, marking an 85% reduction over three years.
- Quarterly Revenue (Q4 2024): $6.33 million, up from $5.7 million in the prior year period.
- Quarterly Gross Profit (Q4 2024): $2.7 million, with margins improving to 42.7%.
- Quarterly EBITDA (Q4 2024): $1.6 million, up from $1.09 million in Q4 2023.
- Debt Reduction: Total outstanding debt reduced by 32% from over $34 million to approximately $23 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SuperCom Ltd (SPCB, Financial) achieved a record revenue of $27.6 million in 2024, marking a 134% increase from 2020.
- The company reported a positive GAAP net income of $661,000, a significant turnaround from a $4 million net loss in 2023.
- EBITDA rose to $6.3 million, marking the 10th consecutive quarter of positive EBITDA.
- SuperCom Ltd (SPCB) secured several important contracts in the US and Europe, expanding its footprint significantly.
- The company has successfully reduced its operating cash use by 85% over three years, reflecting strong execution across projects.
Negative Points
- Despite positive net income, SuperCom Ltd (SPCB) reported a GAAP net loss of $1.86 million for Q4 2024.
- The company faces macroeconomic uncertainties and global challenges, including geopolitical conflicts and supply chain disruptions.
- There is potential volatility in gross margins due to the nature of multi-region projects and their varying scales.
- SuperCom Ltd (SPCB) has a significant focus on the US market, which remains largely untapped and presents challenges in expansion.
- The company is still dependent on strategic acquisitions to consolidate its presence in the US market, which may pose integration risks.
