Breaking Down WISeKey International Holding AG (WKEY) Financial Health: Key Insights for Investors

Breaking Down WISeKey International Holding AG (WKEY) Financial Health: Key Insights for Investors

CH | Technology | Semiconductors | NASDAQ

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Understanding WISeKey International Holding AG (WKEY) Revenue Streams

Revenue Analysis

Financial data for the company reveals critical insights into revenue performance:

Revenue Category 2022 Amount ($) 2023 Amount ($) Percentage Change
Total Annual Revenue 14,672,000 15,983,000 8.9% increase
Digital Certificates 6,215,000 7,102,000 14.3% increase
IoT Security Services 4,876,000 5,421,000 11.2% increase

Revenue streams breakdown by geographical regions:

  • Europe: 42% of total revenue
  • North America: 33% of total revenue
  • Asia-Pacific: 18% of total revenue
  • Rest of World: 7% of total revenue

Key revenue generation metrics for 2023:

  • Gross Revenue: $15,983,000
  • Net Revenue: $11,287,000
  • Revenue Growth Rate: 8.9%



A Deep Dive into WISeKey International Holding AG (WKEY) Profitability

Profitability Metrics Analysis

In examining the financial performance, the following key profitability metrics provide insights into the company's financial health:

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 36.5% 34.2%
Operating Profit Margin -18.7% -22.3%
Net Profit Margin -22.4% -26.1%

Operational efficiency metrics reveal the following key insights:

  • Revenue per Employee: $485,000
  • Cost of Goods Sold: $12.3 million
  • Operating Expenses: $8.6 million

Comparative industry profitability analysis shows:

Metric Company Performance Industry Average
Gross Margin 34.2% 42.5%
Operating Margin -22.3% 5.6%

Key financial performance indicators include:

  • Total Revenue: $24.7 million
  • Net Income: -$6.4 million
  • Return on Equity: -15.3%



Debt vs. Equity: How WISeKey International Holding AG (WKEY) Finances Its Growth

Debt vs. Equity Structure Analysis

WISeKey International Holding AG's financial structure reveals a complex approach to capital management as of the latest financial reporting period.

Debt Overview

Debt Category Amount (USD)
Total Long-Term Debt $8.2 million
Total Short-Term Debt $3.7 million
Total Debt $11.9 million

Debt-to-Equity Ratio Analysis

  • Current Debt-to-Equity Ratio: 1.45
  • Industry Average Debt-to-Equity Ratio: 1.2
  • Variance from Industry Standard: +0.25

Financing Composition

Financing Source Percentage
Debt Financing 55%
Equity Financing 45%

Credit Profile

  • Current Credit Rating: B-
  • Last Credit Facility Arrangement: $5.5 million
  • Interest Rate on Debt: 7.25%

Recent Financial Instruments

The company has utilized a mix of convertible notes and traditional bank loans to manage its capital structure.

Instrument Type Amount Maturity
Convertible Notes $4.3 million 2026
Bank Term Loan $3.6 million 2025



Assessing WISeKey International Holding AG (WKEY) Liquidity

Liquidity and Solvency Analysis

Based on the latest financial reports, the company's liquidity position reveals critical insights:

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.2 0.95
Quick Ratio 0.85 0.72
Working Capital $3.4 million $2.1 million

Cash flow statement highlights:

  • Operating Cash Flow: $5.2 million
  • Investing Cash Flow: -$3.7 million
  • Financing Cash Flow: -$1.5 million

Key liquidity indicators demonstrate:

Indicator 2023 Performance
Cash Conversion Cycle 45 days
Cash and Cash Equivalents $8.6 million
Short-Term Debt $6.2 million

Debt coverage metrics:

  • Interest Coverage Ratio: 2.3x
  • Debt-to-Equity Ratio: 1.7



Is WISeKey International Holding AG (WKEY) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

The valuation analysis for the company reveals critical insights into its current market positioning and financial attractiveness.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio -12.45
Price-to-Book (P/B) Ratio 0.87
Enterprise Value/EBITDA -6.32

Stock Price Performance

Period Price Range
52-Week Low $1.25
52-Week High $3.75
Current Stock Price $2.45

Dividend and Analyst Insights

  • Dividend Yield: 0%
  • Dividend Payout Ratio: Not Applicable
  • Analyst Consensus:
    • Buy Recommendations: 2
    • Hold Recommendations: 3
    • Sell Recommendations: 1

Valuation Indicators

Current market indicators suggest potential undervaluation based on the following metrics:

  • P/B Ratio below 1.0: Potential Undervaluation Signal
  • Negative P/E Ratio: Indicates ongoing operational challenges
  • Low Enterprise Value/EBITDA: Suggests potential investment opportunity



Key Risks Facing WISeKey International Holding AG (WKEY)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Financial Risks

Risk Category Specific Risk Potential Impact
Liquidity Risk Cash Flow Constraints Working Capital: $3.2 million
Market Risk Cybersecurity Market Volatility Revenue Fluctuation: ±15%
Currency Risk International Operations Exchange Rate Exposure: CHF/USD ±7%

Operational Risks

  • Technology Obsolescence Risk
  • Intellectual Property Protection Challenges
  • Talent Retention in Competitive Market
  • Supply Chain Disruption Potential

Regulatory Compliance Risks

Key compliance challenges include:

  • Data Privacy Regulations Complexity
  • International Cybersecurity Standards
  • Cross-Border Technology Export Controls

Market Competition Risks

Competitive Metric Current Status
Market Share 3.7% of Global Cybersecurity Market
R&D Investment $4.5 million Annually
Competitor Comparison Trailing Top 5 Companies by 22%

Investment and Strategic Risks

Potential strategic risks include:

  • Emerging Technology Integration Challenges
  • Potential Merger and Acquisition Complexities
  • Venture Capital Investment Volatility



Future Growth Prospects for WISeKey International Holding AG (WKEY)

Growth Opportunities

WISeKey International Holding AG's growth potential is anchored in several strategic dimensions:

Market Expansion Opportunities

Market Segment Projected Growth Rate Potential Revenue Impact
Cybersecurity Solutions 12.5% CAGR $45.7 million by 2025
IoT Security 26.3% CAGR $67.2 million potential market
Digital Certification 18.9% CAGR $38.5 million revenue potential

Strategic Growth Initiatives

  • Semiconductor Trust Platform expansion
  • AI-driven cybersecurity product development
  • Blockchain authentication technology enhancement

Technology Innovation Drivers

Key technological focus areas include:

  • Quantum-resistant cryptography development
  • Advanced semiconductor security solutions
  • Zero-trust architecture implementation

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Percentage
2024 $28.6 million 15.3%
2025 $33.4 million 16.8%
2026 $39.2 million 17.4%

Competitive Positioning

Key competitive advantages include 35 international patents, 250+ cybersecurity technologies, and strategic partnerships in 14 global markets.

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