System1, Inc. (SST) - Comprehensive Stock Analysis & Investment Research
Deep dive into System1, Inc.'s business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
System1, Inc. Investment Summary
When evaluating whether System1, Inc. (SST) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
System1, Inc. (SST) operates within the Technology sector, specifically in the Services-Computer Programming, Data Processing, Etc. industry. The company employs approximately 320 people. With a market capitalization of $36 million, the company is a small-cap stock that may offer higher growth potential but also carries higher volatility.
Financial Performance Analysis
System1, Inc. generates annual revenues of approximately $289 million. The company maintains solid profitability with a net margin of 14.8%, indicating healthy operational efficiency.
From a profitability standpoint, the company reports a Return on Equity (ROE) of 10.3%, which is acceptable for its industry. The Return on Assets (ROA) stands at 5.7%, showing reasonable asset productivity. The gross margin of 25.9% suggests a competitive or commodity-driven business model.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 0.72x suggests potential liquidity constraints that warrant attention. The debt-to-equity ratio of 0.65x indicates moderate leverage, typical for many established companies.
Cash Flow Generation
System1, Inc. currently reports negative free cash flow of $-1 million, which may reflect heavy investment in growth or operational challenges. Operating cash flow stands at $-1 million, indicating the company is consuming cash in its operations.
Valuation Analysis
The company currently has negative earnings, resulting in no meaningful P/E ratio. This is common for growth companies investing heavily in expansion or those facing temporary headwinds. The price-to-book ratio stands at 0.84x, potentially indicating undervaluation or market concerns about asset quality.
AI-Powered Price Predictions
Our AI models continuously analyze System1, Inc. to identify potential price movements. Subscribe to Intratio Premium to unlock detailed AI-powered price predictions for 7, 30, and 90-day horizons.
Investment Considerations
When determining whether System1, Inc. is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a small-cap stock, System1, Inc. may offer higher growth potential but also carries elevated volatility and risk.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
System1, Inc. (Stock Symbol: SST) is a prominent company operating within the Technology sector, with a specific focus on the Services-Computer Programming, Data Processing, Etc. industry. The company's shares are publicly traded on the NYSE exchange.
Leadership & Workforce
The organization employs approximately 320 professionals, which is characteristic of a lean, focused organization that may emphasize efficiency and specialized expertise.
Market Classification
With a market capitalization of $36 million, System1, Inc. is classified as a small-cap stock. Small-cap companies often represent emerging businesses with substantial growth potential. While these investments typically carry higher volatility, they can offer significant upside for investors willing to accept greater risk.
Sector & Industry Context
Operating within the Technology sector, System1, Inc. is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy. The technology sector is known for rapid innovation, high growth potential, and competitive intensity. Companies in this sector must continuously invest in research and development to maintain their competitive edge.
Revenue & Growth Analysis
System1, Inc. generates annual revenues of $289 million , representing an emerging company in its growth phase. While smaller in scale, such companies often offer higher growth potential as they capture market share and expand their operations.
Profitability Analysis
The company achieves a 14.8% net profit margin, demonstrating healthy profitability and efficient operations. This margin level provides comfortable coverage for reinvestment in the business, dividend payments, and building financial reserves for future opportunities or challenges.
Gross profit margin stands at 25.9%, a moderate margin common in manufacturing, retail, or distribution-heavy businesses where competition or cost structures limit pricing flexibility.
Operating margin is 9.2%, indicating moderate operational leverage where fixed costs consume a significant portion of gross profits.
Market Valuation
Current market capitalization stands at $36 million . This small-cap classification typically represents higher-growth, higher-risk opportunities. Small-cap stocks can be more volatile but may offer substantial returns if the company successfully executes its growth strategy.
Return on Investment Metrics
Return on Equity (ROE) measures 10.3%, indicating adequate returns for shareholders, roughly in line with broader market averages. This represents acceptable but not exceptional capital efficiency.
Return on Assets (ROA) stands at 5.7%, showing moderate asset utilization common in capital-intensive industries like manufacturing or utilities.
Return on Invested Capital (ROIC) measures 10.0%, suggesting returns roughly in line with typical corporate cost of capital, indicating value maintenance but limited value creation.
Cash Flow Generation
Free cash flow of $-1 million indicates the company is currently consuming more cash than it generates, which may reflect heavy growth investments, working capital needs, or operational challenges.
Operating cash flow reaches $-1 million . Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
System1, Inc. strategically competes in the highly dynamic Services-Computer Programming, Data Processing, Etc. marketplace. As a small-cap company, it represents an emerging market participant with potentially significant growth opportunities. Small-caps often offer greater growth potential as they capture market share and scale their operations, though this comes with higher risk and volatility. Success at this stage can lead to substantial returns for early investors who identify winning business models.
Industry Competitive Landscape
System1, Inc. operates within the fast-evolving technology sector where competitive dynamics are shaped by innovation cycles, platform economics, and network effects. Technology companies must continuously invest in R&D to maintain relevance, while also defending against disruption from startups and adjacent market entrants. Success in this sector often requires achieving critical scale or establishing defensible intellectual property positions.
Operational Efficiency
The company currently shows negative free cash flow of $-1 million . Negative free cash flow may reflect heavy investment in growth, working capital needs, or operational challenges. This is common for high-growth companies investing aggressively but warrants attention for mature businesses.
Margin & Pricing Power Analysis
The company maintains a 25.9% gross margin reflecting moderate pricing power typical of many manufacturing, retail, or service businesses. While not exceptionally high, these margins provide adequate room for operating expenses and profit generation. Competitive pressures or cost increases could impact profitability if margins compress.
Operating margin of 9.2% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. Operating margin compression relative to gross margin suggests high operating expenses that may warrant efficiency improvements or reflect necessary growth investments.
Asset Utilization Efficiency
Asset turnover ratio of 2.59x indicates exceptional efficiency in utilizing company assets to generate revenue. High asset turnover is characteristic of retail, distribution, or service businesses that operate with relatively lean asset bases. This efficiency translates to higher returns on invested capital when combined with reasonable margins.
Financial Strength & Leverage
Current ratio of 0.72 reflects potential liquidity concerns with current liabilities exceeding current assets. While some businesses operate successfully with negative working capital, this warrants understanding of the specific circumstances.