Recent Insider Transactions • May 02
Employee Representative Director recently sold kr1.1m worth of stock On the 27th of April, Mikael Mårtensson sold around 2k shares on-market at roughly kr543 per share. This transaction amounted to 8.9% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought kr495k more than they sold in the last 12 months. Buy Or Sell Opportunity • Apr 23
Now 27% overvalued after recent price rise Over the last 90 days, the stock has risen 33% to kr522. The fair value is estimated to be kr410, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.2% over the last 3 years. Earnings per share has declined by 23%. Upcoming Dividend • Apr 17
Upcoming dividend of kr4.80 per share Eligible shareholders must have bought the stock before 24 April 2026. Payment date: 30 April 2026. Payout ratio is a comfortable 55% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of British dividend payers (5.7%). Lower than average of industry peers (2.1%). Reported Earnings • Mar 30
Full year 2025 earnings released: EPS: kr8.66 (vs kr6.35 in FY 2024) Full year 2025 results: EPS: kr8.66 (up from kr6.35 in FY 2024). Revenue: kr3.58b (up 17% from FY 2024). Net income: kr434.7m (up 40% from FY 2024). Profit margin: 12% (up from 10% in FY 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Buy Or Sell Opportunity • Mar 17
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 3.1% to kr441. The fair value is estimated to be kr356, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has declined by 20%. For the next 3 years, revenue is forecast to grow by 9.1% per annum. Earnings are also forecast to grow by 21% per annum over the same time period. Buy Or Sell Opportunity • Feb 27
Now 21% overvalued Over the last 90 days, the stock has fallen 10% to kr424. The fair value is estimated to be kr352, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has declined by 20%. For the next 3 years, revenue is forecast to grow by 9.1% per annum. Earnings are also forecast to grow by 21% per annum over the same time period. Annonce • Feb 10
HMS Networks AB (publ) to Report Fiscal Year 2025 Final Results on Mar 25, 2026 HMS Networks AB (publ) announced that they will report fiscal year 2025 final results on Mar 25, 2026 Annonce • Feb 05
HMS Networks AB (publ) to Report Q4, 2026 Final Results on Jan 28, 2027 HMS Networks AB (publ) announced that they will report Q4, 2026 final results at 7:30 AM, Coordinated Universal Time on Jan 28, 2027 Reported Earnings • Jan 27
Full year 2025 earnings released: EPS: kr8.67 (vs kr6.35 in FY 2024) Full year 2025 results: EPS: kr8.67 (up from kr6.35 in FY 2024). Revenue: kr3.58b (up 17% from FY 2024). Net income: kr435.0m (up 41% from FY 2024). Profit margin: 12% (up from 10% in FY 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 10.0% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Dec 04
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 4.0% to kr464. The fair value is estimated to be kr378, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has declined by 18%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. Annonce • Nov 16
HMS Networks AB (publ) to Report Q2, 2026 Results on Jul 14, 2026 HMS Networks AB (publ) announced that they will report Q2, 2026 results at 7:30 AM, Coordinated Universal Time on Jul 14, 2026 Reported Earnings • Oct 22
Third quarter 2025 earnings released: EPS: kr3.26 (vs kr1.89 in 3Q 2024) Third quarter 2025 results: EPS: kr3.26 (up from kr1.89 in 3Q 2024). Revenue: kr894.0m (up 13% from 3Q 2024). Net income: kr164.0m (up 73% from 3Q 2024). Profit margin: 18% (up from 12% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Oct 21
Now 34% overvalued after recent price rise Over the last 90 days, the stock has risen 18% to kr502. The fair value is estimated to be kr376, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has declined by 14%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings are also forecast to grow by 26% per annum over the same time period. Annonce • Sep 23
HMS Networks AB (publ), Annual General Meeting, Apr 23, 2026 HMS Networks AB (publ), Annual General Meeting, Apr 23, 2026. Annonce • Sep 12
HMS Networks AB (publ) to Report Q1, 2026 Results on Apr 23, 2026 HMS Networks AB (publ) announced that they will report Q1, 2026 results on Apr 23, 2026 Recent Insider Transactions • Jul 17
Independent Chairman of the Board recently bought kr300k worth of stock On the 11th of July, Charlotte Jansdotter Karlberg bought around 750 shares on-market at roughly kr400 per share. This transaction amounted to 14% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Charlotte Jansdotter's only on-market trade for the last 12 months. Recent Insider Transactions • Jul 15
Independent Chairman of the Board recently bought kr300k worth of stock On the 11th of July, Charlotte Jansdotter Karlberg bought around 750 shares on-market at roughly kr400 per share. This transaction amounted to 14% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Charlotte Jansdotter's only on-market trade for the last 12 months. Reported Earnings • Jul 13
Second quarter 2025 earnings released: EPS: kr1.67 (vs kr0.70 in 2Q 2024) Second quarter 2025 results: EPS: kr1.67 (up from kr0.70 in 2Q 2024). Revenue: kr843.0m (flat on 2Q 2024). Net income: kr84.0m (up 147% from 2Q 2024). Profit margin: 10.0% (up from 4.0% in 2Q 2024). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Jun 13
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to kr396. The fair value is estimated to be kr496, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has declined by 8.6%. Revenue is forecast to grow by 38% in 2 years. Earnings are forecast to grow by 154% in the next 2 years. Annonce • Apr 24
HMS Networks AB (publ) Approves No Dividend for the Financial Year 2024 HMS Networks AB (publ) held its Annual General Meeting on April 25, 2025, resolved in accordance with the Board’s proposal that no dividend shall be paid to the shareholders for the 2024 financial year, and that the profit for 2024 plus the retained earnings carried forward from the previous years shall be carried forward. New Risk • Apr 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 9.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (74% net debt to equity). Share price has been volatile over the past 3 months (9.5% average weekly change). Profit margins are more than 30% lower than last year (9.5% net profit margin). Annonce • Apr 23
HMS Networks AB (publ) to Report Fiscal Year 2025 Results on Jan 27, 2026 HMS Networks AB (publ) announced that they will report fiscal year 2025 results on Jan 27, 2026 Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to kr374, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 27x in the Communications industry in the United Kingdom. Total loss to shareholders of 16% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr573 per share. Buy Or Sell Opportunity • Apr 05
Now 26% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.2% to kr411. The fair value is estimated to be kr557, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 16% per annum. Earnings are also forecast to grow by 33% per annum over the same time period. Reported Earnings • Mar 27
Full year 2024 earnings released: EPS: kr6.35 (vs kr12.23 in FY 2023) Full year 2024 results: EPS: kr6.35 (down from kr12.23 in FY 2023). Revenue: kr3.06b (up 1.1% from FY 2023). Net income: kr309.7m (down 46% from FY 2023). Profit margin: 10% (down from 19% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 1% per year. Recent Insider Transactions • Mar 06
Insider recently bought kr1.1m worth of stock On the 3rd of March, Alexander Hess bought around 2k shares on-market at roughly kr482 per share. This transaction amounted to 71% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr3.1m more in shares than they have sold in the last 12 months. Buy Or Sell Opportunity • Mar 04
Now 21% undervalued Over the last 90 days, the stock has risen 21% to kr478. The fair value is estimated to be kr608, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 16% per annum. Earnings are also forecast to grow by 33% per annum over the same time period. Reported Earnings • Jan 28
Full year 2024 earnings released: EPS: kr6.35 (vs kr12.23 in FY 2023) Full year 2024 results: EPS: kr6.35 (down from kr12.23 in FY 2023). Revenue: kr3.06b (up 1.1% from FY 2023). Net income: kr310.0m (down 46% from FY 2023). Profit margin: 10% (down from 19% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 1% per year. Annonce • Nov 01
HMS Networks AB (publ) (OM:HMS) completed the acquisition of PEAK-System Technik GmbH from Dogawist-Investment GmbH. HMS Networks AB (publ) (OM:HMS) entered into a binding agreement to acquire PEAK-System Technik GmbH from Dogawist-Investment GmbH for €69 million on October 1, 2024. The acquisition will be financed through a combination of existing financing arrangements and a new term loan of €30 million provided by Skandinaviska Enskilda Banken AB (Publ) and the Swedish Export Credit Corporation.
For the period ending September 30, 2024, PEAK-System Technik GmbH reported total revenue of €25 million.
The transaction is subject to closing conditions and the is expected to be completed on November 1, 2024.
HMS Networks AB (publ) (OM:HMS) completed the acquisition of PEAK-System Technik GmbH from Dogawist-Investment GmbH November 1, 2024. Annonce • Oct 15
HMS Networks AB (publ) Changes Organization to Strengthen Customer Focus and Cross-Selling HMS Networks AB (publ) announced a re-organization into a structure with three divisions to gear up for continued growth. Rationale for the organization change Since 2017, HMS has been operating with a matrix organization with business units responsible for product development and market units responsible for sales and marketing of all products. Following the organic growth over the last years and the recent acquisitions of Red Lion Controls and PEAK-System, HMS re-structures to better serve the different customer groups and group the product offerings to leverage technology synergies. The three divisions The result is three divisions, all with clear target customer groups where each division has full Profit & Loss responsibility and a homogeneous offer. Industrial Data Solutions (IDS): Solutions to connect, secure, diagnose and visualize data in industrial applications. The main brands will include Red Lion, Ewon and N-tron focusing on machine builders, system integrators and end-users within Industrial Automation. The division will be led by Alexander Hess, who currently holds the position as SVP Information Centric at HMS. Industrial Network Technologies (INT): Technology for communication, control and security in industrial devices. The main brand will be Anybus focusing on device makers within Industrial Automation. The division will be led by Bartek S. Candell, who currently holds the position as SVP Control Centric at HMS. New Industries (NI): Industrial communication for niche applications in growing industries outside the Industrial Automation markets. Building Automation and Vehicle Communication will be under New Industries. Main brands will be Intesis, Ixxat, PEAK-System and Owasys. The managers in New Industries will report to CEO Staffan Dahlström. The new organization will be in place from January 1, 2025. This also means that HMS will start with segment reporting as of the first quarter 2025. Financial implications from the organization change As a result of the new organization there will be about 40 positions, primarily within management and the sales and marketing organization, that will be impacted. Including the acquisition of PEAK-System and the divestment of MB Connect Line, HMS will have just over 1100 employees from January 1, 2025. The restructuring following the organizational change is expected to result in full year savings of SEK 40 million, with full impact from January 1, 2025, and will come with restructuring costs of SEK 25 million that will impact the fourth quarter of 2024. Annonce • Oct 04
HMS Networks AB (publ), Annual General Meeting, Apr 24, 2025 HMS Networks AB (publ), Annual General Meeting, Apr 24, 2025. Annonce • Oct 02
HMS Networks AB (publ) (OM:HMS) entered into a binding agreement to acquire PEAK-System Technik GmbH from Dogawist-Investment GmbH for €69 million. HMS Networks AB (publ) (OM:HMS) entered into a binding agreement to acquire PEAK-System Technik GmbH from Dogawist-Investment GmbH for €69 million on October 1, 2024. The acquisition will be financed through a combination of existing financing arrangements and a new term loan of €30 million provided by Skandinaviska Enskilda Banken AB (Publ) and the Swedish Export Credit Corporation.
For the period ending September 30, 2024, PEAK-System Technik GmbH reported total revenue of €25 million.
The transaction is subject to closing conditions and the is expected to be completed on November 1, 2024. Buy Or Sell Opportunity • Sep 18
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.4% to kr407. The fair value is estimated to be kr525, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 18%. Revenue is forecast to grow by 36% in 2 years. Earnings are forecast to grow by 57% in the next 2 years. Reported Earnings • Jul 16
Second quarter 2024 earnings released: EPS: kr0.70 (vs kr2.49 in 2Q 2023) Second quarter 2024 results: EPS: kr0.70 (down from kr2.49 in 2Q 2023). Revenue: kr845.0m (up 20% from 2Q 2023). Net income: kr34.0m (down 71% from 2Q 2023). Profit margin: 4.0% (down from 17% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Annonce • Apr 19
HMS Networks AB (publ) has completed a Follow-on Equity Offering in the amount of SEK 1.4 billion. HMS Networks AB (publ) has completed a Follow-on Equity Offering in the amount of SEK 1.4 billion.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 3,500,000
Price\Range: SEK 400
Transaction Features: Subsequent Direct Listing Annonce • Apr 18
HMS Networks AB (publ) has filed a Follow-on Equity Offering in the amount of SEK 1.4 billion. HMS Networks AB (publ) has filed a Follow-on Equity Offering in the amount of SEK 1.4 billion.
Security Name: Shares
Security Type: Common Stock
Transaction Features: Subsequent Direct Listing Annonce • Apr 16
HMS Networks AB (Publ) Realize Immediate Cost Synergies and Launches Cost-Saving Program to Streamline the Organization on April 2, 2024, HMS and Red Lion have started the work of realizing synergies between the companies and hereby announces immediate cost synergies. Additionally, as a result of strong organic growth the last few years, and a dampened market demand experienced over the recent quarters and a slower market recovery, HMS is now initiating a cost-saving program to reduce the costs and streamline the organization to be positioned for further growth. The main initiatives of the program will be to realize early cost synergies from the acquisition of Red Lion and a restructuring of the Anybus organization, but also a fine-tuning of the European organization. The program is expected to affect approximately 45 positions in total, of which approximately 25 positions in Sweden, and result in cost savings of about SEK 30 million in 2024, with a full year effect of about SEK 55 million. As a result of the program, HMS will commence negotiations with labor unions in Sweden. The expected cost savings will gradually materialize during the second quarter of 2024, with full impact from the start of the third quarter of 2024. As a result of the cost-saving program, the company expects one-time restructuring costs of approximately SEK 35 million during the second quarter. Annonce • Apr 10
Chief Commercial Officer, Hans Larsson Decides to Leave HMS Networks, Effective June 20, 2024 The Chief Commercial Officer (CCO), Hans Larsson, has decided to leave HMS Networks for new challenges outside the company. Hans Larsson will stay with HMS until June 20, 2024. Declared Dividend • Apr 06
Dividend increased to kr4.40 Dividend of kr4.40 is 10% higher than last year. Ex-date: 24th April 2024 Payment date: 30th April 2024 Dividend yield will be 1.0%, which is lower than the industry average of 2.7%. Payout Ratios Payout ratio: 36%. Cash payout ratio: 46%. Annonce • Apr 03
HMS Networks AB (publ) (OM:HMS) completed the acquisition of Red Lion Controls, Inc. from Spectris plc (LSE:SXS) for approximately $350 million. HMS Networks AB (publ) (OM:HMS) has entered into a binding agreement to acquire Red Lion Controls, Inc. from Spectris plc (LSE:SXS) for approximately $350 million on December 11, 2023. The acquisition will be financed through a combination of new debt and equity. HMS has obtained debt financing in an amount of $225 million provided by Skandinaviska Enskilda Banken AB and the Swedish Export Credit Corporation, consisting of a term loan and a revolving credit facility. In addition, Skandinaviska Enskilda Banken AB has provided a bridge loan facility in an amount of $120 million, which is expected to be repaid with the proceeds from a share issue that is planned to be carried out after the closing of the acquisition. In the twelve-month period ending on September 30, 2023, Red Lion reported sales of about $128.211 million and an adjusted EBIT of about $26.4315 million , corresponding to an adjusted EBIT margin of about 20.6 percent. Further, Red Lion reported in the corresponding period, a gross margin of about 55 percent. After allowing for tax, the net proceeds from the sale are expected to be approximately $275 million. After completion of the acquisition and the share issue, net debt/adjusted EBITDA on pre-IFRS 16 basis, excluding transaction and integration costs, is expected to be approximately 2.0x. The acquisition is subject subject to customary closing conditions including regulatory approvals, filing with and approval by the appropriate authorities under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 and filing with and approval by the Committee on Foreign Investment in the United States. The transaction is expected to close during the first half of 2024. The acquisition is expected to be accretive to HMS' earnings per share from completion of the acquisition (excluding any non-cash amortization impacts from the transaction). Skandinaviska Enskilda Banken AB provides the debt financing facility (together with SEK) and acts as exclusive financial advisor to HMS on the contemplated share issue. Mannheimer Swartling Advokatbyrå acts as lead counsel to HMS on the acquisition of Red Lion, the debt financing facility and the contemplated share issue, with Cravath, Swaine & Moore as special US counsel. Alvarez & Marsal acts as Accountant and financial advisor to HMS in the transaction. Evan Yellin, Malte Richter and Han Wool Park of EC M&A - London acted as financial advisor to Spectris plc (LSE:SXS). Wilmer Cutler Pickering Hale and Dorr LLP acted as a legal counsel to Spectris plc (LSE:SXS). For HMS and Red Lion customers, there will be no initial changes. The HMS and Red Lion company names remain unchanged and product brands will be marketed and sold as before through the same channels. Production and shipping are handled from the HMS and Red Lion entities respectively. Contact details and email addresses remain, with the exception of India where Red Lion staff will get an hms-networks.com address.
HMS Networks AB (publ) (OM:HMS) completed the acquisition of Red Lion Controls, Inc. from Spectris plc (LSE:SXS) on April 2, 2024. Buy Or Sell Opportunity • Apr 03
Now 20% overvalued Over the last 90 days, the stock has fallen 2.5% to kr476. The fair value is estimated to be kr396, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 25% over the last 3 years. Earnings per share has grown by 31%. For the next 3 years, revenue is forecast to grow by 7.5% per annum. Earnings are also forecast to grow by 8.2% per annum over the same time period. Reported Earnings • Mar 29
Full year 2023 earnings released: EPS: kr12.23 (vs kr10.89 in FY 2022) Full year 2023 results: EPS: kr12.23 (up from kr10.89 in FY 2022). Revenue: kr3.02b (up 21% from FY 2022). Net income: kr570.6m (up 12% from FY 2022). Profit margin: 19% (down from 20% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Annonce • Mar 15
HMS Networks AB (publ) Announces Fredrik Hansson Declines Re-Election as Board Member HMS Networks AB (publ) at its Annual General Meeting to be held on April 23, 2024, announced Fredrik Hansson has declined re-election as Board Member. Annonce • Feb 15
HMS Networks AB (publ) to Report Fiscal Year 2023 Results on Mar 27, 2024 HMS Networks AB (publ) announced that they will report fiscal year 2023 results on Mar 27, 2024 Reported Earnings • Jan 27
Full year 2023 earnings released: EPS: kr12.23 (vs kr10.89 in FY 2022) Full year 2023 results: EPS: kr12.23 (up from kr10.89 in FY 2022). Revenue: kr3.03b (up 21% from FY 2022). Net income: kr571.0m (up 12% from FY 2022). Profit margin: 19% (down from 20% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Annonce • Jan 26
HMS Networks AB (Publ) Proposes A Dividend The Board of Directors of HMS Networks AB (publ) proposed a dividend to the amount of SEK 4.40 (4.00) per share. Annonce • Jan 05
HMS Networks AB (publ), Annual General Meeting, Apr 23, 2024 HMS Networks AB (publ), Annual General Meeting, Apr 23, 2024. Annonce • Dec 13
HMS Networks AB (publ) (OM:HMS) has entered into a binding agreement to acquire Red Lion Controls, Inc. from Spectris plc (LSE:SXS) for approximately $350 million. HMS Networks AB (publ) (OM:HMS) has entered into a binding agreement to acquire Red Lion Controls, Inc. from Spectris plc (LSE:SXS) for approximately $350 million on December 11, 2023. The acquisition will be financed through a combination of new debt and equity. HMS has obtained debt financing in an amount of $225 million provided by Skandinaviska Enskilda Banken AB and the Swedish Export Credit Corporation, consisting of a term loan and a revolving credit facility. In addition, Skandinaviska Enskilda Banken AB has provided a bridge loan facility in an amount of $120 million, which is expected to be repaid with the proceeds from a share issue that is planned to be carried out after the closing of the acquisition. In the twelve-month period ending on September 30, 2023, Red Lion reported sales of about $128.211 million and an adjusted EBIT of about $26.4315 million , corresponding to an adjusted EBIT margin of about 20.6 percent. Further, Red Lion reported in the corresponding period, a gross margin of about 55 percent. After allowing for tax, the net proceeds from the sale are expected to be approximately $275 million. After completion of the acquisition and the share issue, net debt/adjusted EBITDA on pre-IFRS 16 basis, excluding transaction and integration costs, is expected to be approximately 2.0x. The acquisition is subject subject to customary closing conditions including regulatory approvals, filing with and approval by the appropriate authorities under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 and filing with and approval by the Committee on Foreign Investment in the United States. The transaction is expected to close during the first half of 2024. The acquisition is expected to be accretive to HMS' earnings per share from completion of the acquisition (excluding any non-cash amortization impacts from the transaction). Skandinaviska Enskilda Banken AB provides the debt financing facility (together with SEK) and acts as exclusive financial advisor to HMS on the contemplated share issue. Mannheimer Swartling Advokatbyrå acts as lead counsel to HMS on the acquisition of Red Lion, the debt financing facility and the contemplated share issue, with Cravath, Swaine & Moore as special US counsel. Alvarez & Marsal acts as Accountant and financial advisor to HMS in the transaction. Evan Yellin, Malte Richter and Han Wool Park of EC M&A - London acted as financial advisor to Spectris plc (LSE:SXS). Valuation Update With 7 Day Price Move • Dec 12
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to kr523, the stock trades at a forward P/E ratio of 47x. Average forward P/E is 26x in the Communications industry in the United Kingdom. Total returns to shareholders of 105% over the past three years. Annonce • Oct 23
HMS Networks expands Group Management HMS Networks AB (publ) has appointed Bartek S. Candell as Senior Vice President Control Centric and expands Group Management with this new role. Bartek S. Candell, General Manager for HMS’ business area Anybus, will take part of HMS’ Group Management in a new role with responsibility for the "Control Centric" area. Bartek has worked at HMS since 2011, in previous roles such as General Manager APAC and China, and Key Account Manager. Reported Earnings • Oct 18
Third quarter 2023 earnings released: EPS: kr3.69 (vs kr2.89 in 3Q 2022) Third quarter 2023 results: EPS: kr3.69 (up from kr2.89 in 3Q 2022). Revenue: kr789.0m (up 26% from 3Q 2022). Net income: kr172.0m (up 27% from 3Q 2022). Profit margin: 22% (in line with 3Q 2022). Revenue is forecast to stay flat during the next 3 years compared to a 6.2% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Annonce • Oct 05
HMS Networks AB (publ) Appoints Nomination Committee HMS Networks AB (publ) announced that according to the previous AGM resolution, the Chairman of the Board has consulted with the company’s four largest shareholders for a Nomination Committee. The Nomination Committee will prepare proposals for the Annual General Meeting 2024 regarding Chairman of the AGM, Board of Directors, Chairman of the Board and auditors. The Nomination Committee will also prepare proposals concerning fees to the Board of Directors and auditors and remuneration for committee work. The Nomination Committee appointed for the 2024 Annual General Meeting in HMS Networks AB (publ) consists of the following members: Johan Menckel, Investment AB Latour, Chairman; Sophie Larsén, AMF Fonder; Patrik Jönsson, SEB Fonder; Staffan Dahlström, private shareholding; Charlotte Brogren, Chairman of the Board. Valuation Update With 7 Day Price Move • Sep 12
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to kr378, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 13x in the Communications industry in the United Kingdom. Total returns to shareholders of 91% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr208 per share. Recent Insider Transactions • Aug 20
Chief Technology Officer recently sold kr3.6m worth of stock On the 18th of August, Jörgen Palmhager sold around 9k shares on-market at roughly kr421 per share. This transaction amounted to 4.1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of kr3.0m more than they bought in the last 12 months. New Risk • Jul 17
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (7.3% average weekly change). New Risk • Jul 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • Jul 14
Second quarter 2023 earnings released: EPS: kr2.48 (vs kr2.35 in 2Q 2022) Second quarter 2023 results: EPS: kr2.48 (up from kr2.35 in 2Q 2022). Revenue: kr703.0m (up 17% from 2Q 2022). Net income: kr116.0m (up 6.4% from 2Q 2022). Profit margin: 17% (down from 18% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 8.5% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 34% per year whereas the company’s share price has increased by 30% per year. Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to kr411, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 24x in the Communications industry in the United Kingdom. Total returns to shareholders of 124% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr196 per share. Recent Insider Transactions • May 07
Employee Representative Director recently sold kr144k worth of stock On the 5th of May, Freddy Dahlberg sold around 288 shares on-market at roughly kr500 per share. This transaction amounted to 63% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought kr434k more than they sold in the last 12 months. Recent Insider Transactions • Apr 25
Co-Founder recently bought kr53k worth of stock On the 20th of April, Staffan Dahlstrom bought around 115 shares on-market at roughly kr462 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth kr81k. Staffan has been a buyer over the last 12 months, purchasing a net total of kr201k worth in shares. Upcoming Dividend • Apr 19
Upcoming dividend of kr4.00 per share at 0.9% yield Eligible shareholders must have bought the stock before 26 April 2023. Payment date: 03 May 2023. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of British dividend payers (5.8%). Lower than average of industry peers (3.3%). Reported Earnings • Mar 27
Full year 2022 earnings released: EPS: kr10.89 (vs kr7.61 in FY 2021) Full year 2022 results: EPS: kr10.89 (up from kr7.61 in FY 2021). Revenue: kr2.51b (up 27% from FY 2021). Net income: kr507.8m (up 43% from FY 2021). Profit margin: 20% (up from 18% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 2.8% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has increased by 51% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Feb 16
HMS Networks AB (publ) to Report Fiscal Year 2022 Final Results on Mar 24, 2023 HMS Networks AB (publ) announced that they will report fiscal year 2022 final results on Mar 24, 2023 Reported Earnings • Jan 26
Third quarter 2022 earnings released: EPS: kr2.89 (vs kr1.80 in 3Q 2021) Third quarter 2022 results: EPS: kr2.89 (up from kr1.80 in 3Q 2021). Revenue: kr624.0m (up 32% from 3Q 2021). Net income: kr135.0m (up 61% from 3Q 2021). Profit margin: 22% (up from 18% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.2% p.a. on average during the next 4 years, compared to a 6.6% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 31% per year. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to kr393, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 16x in the Communications industry in the United Kingdom. Total returns to shareholders of 129% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr211 per share. Annonce • Jan 18
HMS Networks AB (publ) to Report Q3, 2023 Results on Oct 18, 2023 HMS Networks AB (publ) announced that they will report Q3, 2023 results on Oct 18, 2023 Annonce • Jan 14
HMS Networks AB (publ) Announces Resignation of Anders Hansson as Chief Marketing Officer HMS Networks AB (publ) announced the resignation of Anders Hansson as Chief Marketing Officer for new challenges outside the company. Anders Hansson will stay with HMS during a 6-month notice period starting January 13, 2023. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improved over the past week After last week's 22% share price gain to kr344, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 19x in the Communications industry in the United Kingdom. Total returns to shareholders of 163% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr351 per share. Buying Opportunity • Nov 03
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 39%. The fair value is estimated to be kr354, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 29%. Revenue is forecast to grow by 16% in 2 years. Earnings is forecast to grow by 14% in the next 2 years. Reported Earnings • Oct 21
Third quarter 2022 earnings released: EPS: kr2.90 (vs kr1.80 in 3Q 2021) Third quarter 2022 results: EPS: kr2.90 (up from kr1.80 in 3Q 2021). Revenue: kr624.0m (up 32% from 3Q 2021). Net income: kr135.0m (up 61% from 3Q 2021). Profit margin: 22% (up from 18% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Communications industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 26% per year. Annonce • Oct 19
HMS Networks AB (publ) to Report First Half, 2023 Results on Jul 14, 2023 HMS Networks AB (publ) announced that they will report first half, 2023 results on Jul 14, 2023 Buying Opportunity • Sep 22
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 30%. The fair value is estimated to be kr377, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 28%. Revenue is forecast to grow by 29% in 2 years. Earnings is forecast to grow by 38% in the next 2 years. Valuation Update With 7 Day Price Move • Sep 22
Investor sentiment deteriorated over the past week After last week's 17% share price decline to kr302, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 17x in the Communications industry in the United Kingdom. Total returns to shareholders of 104% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr377 per share. Reported Earnings • Jul 15
Second quarter 2022 earnings released: EPS: kr2.35 (vs kr2.02 in 2Q 2021) Second quarter 2022 results: EPS: kr2.35 (up from kr2.02 in 2Q 2021). Revenue: kr601.0m (up 27% from 2Q 2021). Net income: kr109.0m (up 16% from 2Q 2021). Profit margin: 18% (down from 20% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 18%, compared to a 9.0% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Apr 14
HMS Networks AB (publ) to Report Fiscal Year 2022 Results on Jan 26, 2023 HMS Networks AB (publ) announced that they will report fiscal year 2022 results on Jan 26, 2023