Valuation Update With 7 Day Price Move • May 28
Investor sentiment improves as stock rises 39% After last week's 39% share price gain to kr1.71, the stock trades at a trailing P/E ratio of 13.6x. Average trailing P/E is 26x in the Machinery industry in Sweden. Total returns to shareholders of 20% over the past three years. New Risk • May 05
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 Swedish stocks, typically moving 8.5% 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: Major Risks Interest payments are not well covered by earnings (1.2x net interest cover). High level of non-cash earnings (45% accrual ratio). Market cap is less than US$10m (kr24.9m market cap, or US$2.68m). Minor Risk Share price has been volatile over the past 3 months (8.5% average weekly change). Valuation Update With 7 Day Price Move • May 05
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to kr1.22, the stock trades at a trailing P/E ratio of 20.2x. Average trailing P/E is 25x in the Machinery industry in Sweden. Total loss to shareholders of 23% over the past three years. Reported Earnings • Feb 21
Full year 2025 earnings released: EPS: kr0.061 (vs kr0.02 loss in FY 2024) Full year 2025 results: EPS: kr0.061 (up from kr0.02 loss in FY 2024). Revenue: kr187.4m (down 4.2% from FY 2024). Net income: kr1.40m (up kr1.85m from FY 2024). Profit margin: 0.7% (up from net loss in FY 2024). Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. New Risk • Oct 17
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.0x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.0x net interest cover). Share price has been highly volatile over the past 3 months (14% average weekly change). High level of non-cash earnings (46% accrual ratio). Market cap is less than US$10m (kr27.8m market cap, or US$2.94m). Reported Earnings • Oct 17
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: kr39.7m (flat on 3Q 2024). Net income: kr500.0k (up kr2.00m from 3Q 2024). Profit margin: 1.3% (up from net loss in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 19
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: kr52.7m (down 2.0% from 2Q 2024). Net income: kr1.50m (up 7.1% from 2Q 2024). Profit margin: 2.8% (up from 2.6% in 2Q 2024). The increase in margin was driven by lower expenses. New Risk • Jul 18
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 Swedish stocks, typically moving 8.9% 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: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr3.6m free cash flow). Earnings have declined by 17% per year over the past 5 years. Market cap is less than US$10m (kr16.6m market cap, or US$1.71m). Minor Risk Share price has been volatile over the past 3 months (8.9% average weekly change). Reported Earnings • May 09
First quarter 2025 earnings released First quarter 2025 results: Revenue: kr47.9m (down 10% from 1Q 2024). Net loss: kr1.10m (down kr1.20m from profit in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has fallen by 27% per year, which means it is performing significantly worse than earnings. Reported Earnings • Apr 10
Full year 2024 earnings released: kr19.52 loss per share (vs kr292 loss in FY 2023) Full year 2024 results: kr19.52 loss per share (improved from kr292 loss in FY 2023). Revenue: kr195.7b (down 7.0% from FY 2023). Net loss: kr445.0m (loss narrowed 93% from FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 31 percentage points per year, which is a significant difference in performance. 공시 • Apr 01
Precomp Solutions AB (publ), Annual General Meeting, May 08, 2025 Precomp Solutions AB (publ), Annual General Meeting, May 08, 2025, at 15:00 W. Europe Standard Time. Location: at the companys premises, bronasgatan 6, ulricehamn Sweden Reported Earnings • Oct 16
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: kr40.3m (down 5.8% from 3Q 2023). Net loss: kr1.50m (loss narrowed 56% from 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 50 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 19
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: kr54.9m (down 3.0% from 2Q 2023). Net income: kr1.40m (up 100% from 2Q 2023). Profit margin: 2.6% (up from 1.2% in 2Q 2023). The increase in margin was driven by lower expenses. New Risk • Jul 20
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 Swedish stocks, typically moving 9.0% 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: Major Risks Earnings have declined by 6.7% per year over the past 5 years. Market cap is less than US$10m (kr29.2m market cap, or US$2.73m). Minor Risk Share price has been volatile over the past 3 months (9.0% average weekly change). Reported Earnings • May 05
First quarter 2024 earnings released First quarter 2024 results: Revenue: kr54.0m (down 13% from 1Q 2023). Net income: kr100.0k (up kr1.00m from 1Q 2023). Profit margin: 0.2% (up from net loss in 1Q 2023). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance. New Risk • Mar 04
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Swedish stocks, typically moving 23% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr1.1m free cash flow). Share price has been highly volatile over the past 3 months (23% average weekly change). Earnings have declined by 2.4% per year over the past 5 years. Market cap is less than US$10m (kr27.8m market cap, or US$2.68m). Reported Earnings • Feb 19
Full year 2023 earnings released: kr0.29 loss per share (vs kr0.44 loss in FY 2022) Full year 2023 results: kr0.29 loss per share (improved from kr0.44 loss in FY 2022). Revenue: kr216.0m (down 1.7% from FY 2022). Net loss: kr6.70m (loss narrowed 33% from FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 50 percentage points per year, which is a significant difference in performance. Board Change • Nov 06
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. 1 independent director (4 non-independent directors). Director Jan Asplund was the last director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. New Risk • Oct 27
New major risk - Revenue and earnings growth Earnings have declined by 0.5% per year over the past 5 years. 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 declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. 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 Risks Less than 1 year of cash runway based on free cash flow trend (-kr6.5m free cash flow). Earnings have declined by 0.5% per year over the past 5 years. Market cap is less than US$10m (kr16.1m market cap, or US$1.44m). Reported Earnings • Aug 23
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: kr58.7m (down 3.3% from 2Q 2022). Net income: kr700.0k (up kr800.0k from 2Q 2022). Profit margin: 1.2% (up from net loss in 2Q 2022). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 4% per year. Board Change • May 24
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 2 highly experienced directors. No independent directors (6 non-independent directors). Director Jan Asplund was the last director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Feb 22
Full year 2022 earnings released: kr0.44 loss per share (vs kr0.29 profit in FY 2021) Full year 2022 results: kr0.44 loss per share (down from kr0.29 profit in FY 2021). Revenue: kr219.7m (up 12% from FY 2021). Net loss: kr10.1m (down 255% from profit in FY 2021). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Board Change • Nov 17
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 5 non-independent directors. Director Jan Asplund was the last director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 30
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: kr48.9m (up 19% from 3Q 2021). Net loss: kr5.10m (down kr5.90m from profit in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 103% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Buying Opportunity • Sep 26
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be kr2.52, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.4% over the last 3 years. Meanwhile, the company has become profitable. Valuation Update With 7 Day Price Move • Sep 15
Investor sentiment deteriorated over the past week After last week's 18% share price decline to kr2.10, the stock trades at a trailing P/E ratio of 35.9x. Average trailing P/E is 17x in the Machinery industry in Sweden. Total returns to shareholders of 16% over the past three years. Reported Earnings • Aug 21
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: kr60.7m (up 11% from 2Q 2021). Net loss: kr100.0k (down 104% from profit in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 105% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improved over the past week After last week's 19% share price gain to kr2.65, the stock trades at a trailing P/E ratio of 14.6x. Average trailing P/E is 18x in the Machinery industry in Sweden. Total returns to shareholders of 54% over the past three years. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 5 non-independent directors. Director Jan Asplund was the last director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 24
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: kr0.28 (up from kr0.23 loss in FY 2020). Revenue: kr196.6m (up 37% from FY 2020). Net income: kr6.50m (up kr10.0m from FY 2020). Profit margin: 3.3% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 29
Investor sentiment improved over the past week After last week's 18% share price gain to kr3.49, the stock trades at a trailing P/E ratio of 12.3x. Average trailing P/E is 26x in the Machinery industry in Sweden. Total returns to shareholders of 84% over the past three years. Recent Insider Transactions • Nov 18
Sales & Marketing Manager recently bought kr87k worth of stock On the 16th of November, Martin West bought around 25k shares on-market at roughly kr3.50 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr102k more in shares than they have sold in the last 12 months. Reported Earnings • Nov 07
Third quarter 2021 earnings released The company reported a mediocre third quarter result with weaker profit margins, although earnings were flat and revenues improved. Third quarter 2021 results: Revenue: kr41.1m (up 17% from 3Q 2020). Net income: kr800.0k (flat on 3Q 2020). Profit margin: 1.9% (down from 2.3% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 26
Second quarter 2021 earnings released The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: kr54.7m (up 171% from 2Q 2020). Net income: kr2.70m (up kr7.20m from 2Q 2020). Profit margin: 4.9% (up from net loss in 2Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 10
First quarter 2021 earnings released The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: kr50.7m (up 20% from 1Q 2020). Net income: kr3.00m (up kr2.80m from 1Q 2020). Profit margin: 5.9% (up from 0.5% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 28
Full year 2020 earnings released: kr0.27 loss per share (vs kr0.30 loss in FY 2019) The company reported a soft full year result with weaker revenues and control over costs, although losses reduced. Full year 2020 results: Revenue: kr143.5m (down 19% from FY 2019). Net loss: kr3.50m (loss narrowed 8.7% from FY 2019). Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Feb 27
New 90-day high: kr2.08 The company is up 81% from its price of kr1.15 on 27 November 2020. The Swedish market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 14% over the same period. Is New 90 Day High Low • Feb 09
New 90-day high: kr1.61 The company is up 52% from its price of kr1.06 on 10 November 2020. The Swedish market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 11% over the same period. Is New 90 Day High Low • Oct 05
New 90-day high: kr1.80 The company is up 59% from its price of kr1.13 on 06 July 2020. The Swedish market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 5.0% over the same period.