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Stock Analysis & ValuationSmarttech247 Group plc (S247.L)

Professional Stock Screener
Previous Close
£4.00
Sector Valuation Confidence Level
Low
Valuation methodValue, £Upside, %
Artificial intelligence (AI)64.801520
Intrinsic value (DCF)5.0727
Graham-Dodd Method0.10-97
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Smarttech247 Group plc is an AI-enhanced cybersecurity company specializing in automated managed detection and response (MDR) services. Operating in the UK, Ireland, Romania, Poland, and the US, the company offers advanced threat intelligence solutions through its proprietary platforms, including NoPhish for real-time phishing detection, VisionX for comprehensive security management, and Threathub for continuous threat exposure management. Serving industries such as pharmaceuticals, healthcare, automotive, universities, fintech, and the public sector, Smarttech247 provides tailored MDR solutions for security assessments and compliance. Founded in 2022 and headquartered in London, the company leverages AI-driven automation to deliver actionable insights, rapid threat detection, and efficient incident response, positioning itself as a key player in the growing cybersecurity market.

Investment Summary

Smarttech247 Group plc presents a niche investment opportunity in the high-growth cybersecurity sector, driven by increasing global demand for AI-enhanced threat detection and response solutions. The company's diversified client base across multiple industries and regions mitigates sector-specific risks. However, its small market cap (£8.8M) and limited financial scale (revenue of £13.2M in FY2024) expose it to competitive pressures from larger cybersecurity firms. Positive indicators include profitability (net income of £133K) and strong cash reserves (£3.3M), but its negative beta (-0.198) suggests low correlation with broader markets, which may appeal to risk-averse investors. The absence of dividends aligns with its growth-focused strategy, but investors should monitor its ability to scale operations and maintain technological differentiation.

Competitive Analysis

Smarttech247 competes in the crowded MDR and threat intelligence market, differentiating itself through AI-driven automation and specialized solutions like NoPhish and VisionX. Its focus on mid-market clients (e.g., universities, regional healthcare) allows it to avoid direct competition with enterprise-focused giants like CrowdStrike. The company's European footprint (UK, Ireland, Poland) provides regional diversification but limits US market penetration compared to rivals. Key advantages include real-time phishing response and compliance-oriented services, though its 2022 incorporation means it lacks the brand recognition of established players. Financial constraints may hinder R&D investment compared to well-capitalized competitors, but its capital-light model (low CapEx of £94K) supports scalability. Strategic partnerships with local MSPs could strengthen its position against global competitors relying on direct sales.

Major Competitors

  • CrowdStrike Holdings (CRWD): CrowdStrike dominates the cloud-native endpoint security space with its Falcon platform, boasting superior threat intelligence and global scale. Its $86B market cap dwarfs Smarttech247, but it primarily targets large enterprises, leaving room for Smarttech247 in SMBs. Weaknesses include high pricing and complexity for mid-market clients.
  • Darktrace plc (DARK.L): Darktrace's AI-powered Cyber AI Platform competes directly in automated threat detection. Its £2.3B market cap and strong brand give it an edge, but Smarttech247's NoPhish tool offers more specialized phishing defense. Darktrace's recent privatization reduces public market comparability.
  • SentinelOne Inc. (S): SentinelOne's autonomous EDR solutions overlap with Smarttech247's MDR focus. Its $5.6B valuation reflects broader product suites, but Smarttech247's regional expertise in Eastern Europe (Romania/Poland) provides localized advantage. SentinelOne's higher burn rate may pressure profitability.
  • Tufin Software Technologies (TUFN.SW): Tufin specializes in network security policy management, differing from Smarttech247's MDR focus. Its $300M market cap makes it a closer peer, but geographic focus (US/Israel) limits direct competition. Tufin's legacy firewall management tools lack Smarttech247's AI-driven automation.
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