New Risk • Apr 30
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 78% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (78% net debt to equity). Dividend is not well covered by earnings (104% payout ratio). Share price has been volatile over the past 3 months (9.9% average weekly change). Profit margins are more than 30% lower than last year (0.5% net profit margin). Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to kr63.70, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 13x in the Professional Services industry in Sweden. Total loss to shareholders of 45% over the past three years. Upcoming Dividend • Apr 22
Upcoming dividend of kr4.00 per share Eligible shareholders must have bought the stock before 29 April 2026. Payment date: 06 May 2026. Payout ratio is on the higher end at 91%, however this is supported by cash flows. Trailing yield: 5.3%. Within top quartile of Swedish dividend payers (4.0%). Higher than average of industry peers (4.1%). Reported Earnings • Apr 08
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: kr4.41 (down from kr8.01 in FY 2024). Revenue: kr13.7b (down 13% from FY 2024). Net income: kr76.2m (down 45% from FY 2024). Profit margin: 0.6% (down from 0.9% in FY 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 15%. Revenue is forecast to stay flat during the next 3 years compared to a 4.1% growth forecast for the Professional Services industry in Sweden. 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. New Risk • Feb 27
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: Minor Risks Dividend is not well covered by earnings (91% payout ratio). Share price has been volatile over the past 3 months (8.9% average weekly change). Profit margins are more than 30% lower than last year (0.6% net profit margin). Reported Earnings • Feb 20
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: kr4.41 (down from kr8.01 in FY 2024). Revenue: kr13.7b (down 13% from FY 2024). Net income: kr76.2m (down 45% from FY 2024). Profit margin: 0.6% (down from 0.9% in FY 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 15%. Revenue is forecast to grow 4.8% p.a. on average during the next 2 years, compared to a 4.3% growth forecast for the Professional Services industry in Sweden. 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 24% per year, which means it is performing significantly worse than earnings. Aankondiging • Feb 20
Ework Group AB (publ) announces Annual dividend, payable on May 06, 2026 Ework Group AB (publ) announced Annual dividend of SEK 4.0000 per share payable on May 06, 2026, ex-date on April 29, 2026 and record date on April 30, 2026. Valuation Update With 7 Day Price Move • Feb 19
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to kr68.00, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 13x in the Professional Services industry in Sweden. Total loss to shareholders of 50% over the past three years. Aankondiging • Oct 28
Ework Group AB (publ), Annual General Meeting, Apr 28, 2026 Ework Group AB (publ), Annual General Meeting, Apr 28, 2026. Location: stockholm Sweden Reported Earnings • Oct 24
Third quarter 2025 earnings: EPS misses analyst expectations Third quarter 2025 results: EPS: kr0.91 (down from kr1.49 in 3Q 2024). Revenue: kr2.99b (down 7.4% from 3Q 2024). Net income: kr15.7m (down 39% from 3Q 2024). Profit margin: 0.5% (down from 0.8% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 39%. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 5% per year. Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to kr142, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 14x in the Professional Services industry in Sweden. Total returns to shareholders of 64% over the past three years. Aankondiging • Jul 21
Ework Group AB (publ) to Report Nine Months, 2025 Results on Oct 23, 2025 Ework Group AB (publ) announced that they will report nine months, 2025 results on Oct 23, 2025 Reported Earnings • Jul 20
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: kr1.92 (down from kr2.00 in 2Q 2024). Revenue: kr3.60b (down 13% from 2Q 2024). Net income: kr33.3m (down 3.7% from 2Q 2024). Profit margin: 0.9% (in line with 2Q 2024). Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 37%. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has remained flat. Board Change • Jun 11
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Sara Katarina Forste was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • May 15
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: kr0.98 (down from kr2.11 in 1Q 2024). Revenue: kr3.51b (down 17% from 1Q 2024). Net income: kr16.9m (down 54% from 1Q 2024). Profit margin: 0.5% (down from 0.9% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 55%. Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 1% per year. Aankondiging • May 15
Ework Group AB (publ) to Report Q2, 2025 Results on Jul 18, 2025 Ework Group AB (publ) announced that they will report Q2, 2025 results at 9:30 AM, Central European Standard Time on Jul 18, 2025 Aankondiging • May 14
Ework Group AB (publ) announces Annual dividend, payable on May 21, 2025 Ework Group AB (publ) announced Annual dividend of SEK 7.0000 per share payable on May 21, 2025, ex-date on May 15, 2025 and record date on May 16, 2025. Valuation Update With 7 Day Price Move • May 09
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to kr125, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Professional Services industry in Sweden. Total returns to shareholders of 15% over the past three years. Aankondiging • May 09
Ework Group Provides Preliminary Earnings Guidance for the First Quarter of 2025 Ework Group provided preliminary earnings guidance for the first quarter of 2025. For the quarter, the company expects revenue to be approximately SEK 3,500 million (SEK 4,225 million) and operating result (EBIT) to be SEK 34 million (SEK 44.7 million). Aankondiging • Mar 10
Ework Group AB (publ) to Report Fiscal Year 2024 Final Results on Apr 11, 2025 Ework Group AB (publ) announced that they will report fiscal year 2024 final results at 9:00 AM, Central European Standard Time on Apr 11, 2025 Reported Earnings • Feb 23
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: kr8.01 (up from kr7.46 in FY 2023). Revenue: kr15.8b (down 8.6% from FY 2023). Net income: kr138.5m (up 7.3% from FY 2023). Profit margin: 0.9% (up from 0.7% in FY 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 8.2%. Revenue is forecast to grow 7.1% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 10% per year. Aankondiging • Nov 01
Ework Group AB (publ) to Report Fiscal Year 2024 Results on Feb 21, 2025 Ework Group AB (publ) announced that they will report fiscal year 2024 results on Feb 21, 2025 Reported Earnings • Oct 24
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: kr1.49 (up from kr1.25 in 3Q 2023). Revenue: kr3.23b (down 11% from 3Q 2023). Net income: kr25.7m (up 19% from 3Q 2023). Profit margin: 0.8% (up from 0.6% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 8.1%. Earnings per share (EPS) also missed analyst estimates by 12%. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 6% per year. Aankondiging • Oct 04
Ework Group AB (Publ) Announces Resignation of Klas Rewelj as Deputy CEO Ework Group AB (publ) announced that Klas Rewelj is leaving his position as Deputy CEO to take on new challenges outside the company. Aankondiging • Oct 03
Ework Group AB (Publ) Announces CFO Changes Ework Group announces that Klas Rewelj is leaving his position as Chief Financial Officer (CFO) to take on new challenges outside the company. Klas took up the role of CFO at Ework Group in January 2022, with the mission of building a strong finance function and contributing to the company’s strategic and financial development. After a well completed tenure, he will hand over the CFO role to Johanna Eriksson, who will take over on November 1. Johanna Eriksson joins Ework from a long career as CFO, with extensive experience in the consulting industry and publicly listed environments. Most recently, she worked as an interim CFO and has previously been CFO for B3 Consulting Group, Dedicare AB, and Sopra Steria Sweden. Johanna will take up the role of CFO at Ework on November 1. Recent Insider Transactions • Sep 25
Founder & Director recently sold kr52m worth of stock On the 18th of September, Magnus Berglind sold around 370k shares on-market at roughly kr140 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Magnus' only on-market trade for the last 12 months. Reported Earnings • Jul 22
Second quarter 2024 earnings: Revenues and EPS in line with analyst expectations Second quarter 2024 results: EPS: kr2.00 (up from kr1.84 in 2Q 2023). Revenue: kr4.15b (down 5.1% from 2Q 2023). Net income: kr34.6m (up 8.7% from 2Q 2023). Profit margin: 0.8% (up from 0.7% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Aankondiging • Jul 20
Ework Group AB (Publ) Reaffirms Earnings Guidance for the Year 2024 Ework Group AB (publ) reaffirmed earnings guidance for the year 2024. The outlook remains unchanged, meaning that Ework anticipates that demand will gradually strengthen, and will thus be able to show growth in late 2024. A limited decrease in sales year-on-year remains the forecast for the full-year 2024. In line with financial targets, it retain previous assessment that operating profit (EBIT) and earnings per share will increase at least 30% for the full-year 2024. Aankondiging • May 03
Ework Group AB (Publ) Provides Earnings Guidance for the First Half and Full Year 2024 Ework Group AB (publ) provided earnings guidance for the first half and full year 2024. For the half year, the company expects decrease in sales during the first half of the year as a result of lower demand and order intake.For the year, the company expects limited decrease in sales. After implemented cost reductions, and with a focus on increased value creation in the deliveries, company is seeing that company can gradually increase the business margins. In line with the financial targets, company maintain the previous assessment that operating profit (EBIT) and earnings per share will increase by at least 30% for full-year 2024. Reported Earnings • May 02
First quarter 2024 earnings released: EPS: kr2.11 (vs kr2.36 in 1Q 2023) First quarter 2024 results: EPS: kr2.11 (down from kr2.36 in 1Q 2023). Revenue: kr4.23b (down 7.5% from 1Q 2023). Net income: kr36.5m (down 10% from 1Q 2023). Profit margin: 0.9% (in line with 1Q 2023). Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 16% per year. Upcoming Dividend • Apr 26
Upcoming dividend of kr7.00 per share Eligible shareholders must have bought the stock before 03 May 2024. Payment date: 10 May 2024. Payout ratio and cash payout ratio are on the higher end at 94% and 76% respectively. Trailing yield: 5.1%. Within top quartile of Swedish dividend payers (4.5%). Higher than average of industry peers (3.2%). Reported Earnings • Apr 05
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: kr7.46 (down from kr8.07 in FY 2022). Revenue: kr17.2b (up 7.3% from FY 2022). Net income: kr129.0m (down 7.3% from FY 2022). Profit margin: 0.7% (down from 0.9% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.9%. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Declared Dividend • Feb 16
Dividend increased to kr7.00 Dividend of kr7.00 is 7.7% higher than last year. Ex-date: 3rd May 2024 Payment date: 10th May 2024 Dividend yield will be 4.7%, which is higher than the industry average of 3.4%. Sustainability & Growth Dividend is not adequately covered by earnings (94% earnings payout ratio). However, it is covered by cash flows (82% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 4.2% to bring the payout ratio under control. EPS is expected to grow by 41% over the next 2 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Feb 09
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: kr7.46 (down from kr8.07 in FY 2022). Revenue: kr17.2b (up 7.3% from FY 2022). Net income: kr129.0m (down 7.3% from FY 2022). Profit margin: 0.7% (down from 0.9% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.9%. Revenue is forecast to grow 7.5% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Board Change • Feb 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Frida Westerberg was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Aankondiging • Jan 30
Ework Group AB (publ) Provides Earnings Guidance for the Year 2024 Ework Group AB (publ) provided earnings guidance for the year 2024. A decrease in turnover is expected the first six months due to lower demand and order intake as the company have reported during 2023. For the full year 2024, a limited decrease in turnover is forecasted. The operating profit for the full year 2024 will increase by at least 30%, in line with its financial goals. Valuation Update With 7 Day Price Move • Oct 31
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to kr114, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 13x in the Professional Services industry in Sweden. Total returns to shareholders of 81% over the past three years. Reported Earnings • Oct 25
Third quarter 2023 earnings: EPS misses analyst expectations Third quarter 2023 results: EPS: kr1.25 (down from kr2.02 in 3Q 2022). Revenue: kr3.64b (up 4.2% from 3Q 2022). Net income: kr21.7m (down 38% from 3Q 2022). Profit margin: 0.6% (down from 1.0% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.8%. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Aankondiging • Sep 25
Ework Group AB (publ) to Report Q3, 2023 Results on Oct 24, 2023 Ework Group AB (publ) announced that they will report Q3, 2023 results on Oct 24, 2023 New Risk • Jul 20
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 41% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (41% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Jul 20
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: kr1.84 (up from kr1.50 in 2Q 2022). Revenue: kr4.38b (up 11% from 2Q 2022). Net income: kr31.8m (up 23% from 2Q 2022). Profit margin: 0.7% (in line with 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 03
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to kr137, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Professional Services industry in Sweden. Total returns to shareholders of 152% over the past three years. Buying Opportunity • Apr 26
Now 21% undervalued Over the last 90 days, the stock is up 33%. The fair value is estimated to be kr210, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.8% over the last 3 years. Earnings per share has grown by 25%. Upcoming Dividend • Apr 19
Upcoming dividend of kr6.50 per share at 3.7% yield Eligible shareholders must have bought the stock before 26 April 2023. Payment date: 03 May 2023. Payout ratio is on the higher end at 81%, and the cash payout ratio is above 100%. Trailing yield: 3.7%. Lower than top quartile of Swedish dividend payers (4.8%). Higher than average of industry peers (3.0%). Reported Earnings • Apr 06
Full year 2022 earnings: Revenues in line with analyst expectations Full year 2022 results: Revenue: kr16.1b (up 22% from FY 2021). Net income: kr139.2m (up 42% from FY 2021). Profit margin: 0.9% (up from 0.7% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Professional Services industry in Sweden. Reported Earnings • Feb 10
Full year 2022 earnings: Revenues and EPS in line with analyst expectations Full year 2022 results: EPS: kr8.07 (up from kr5.68 in FY 2021). Revenue: kr16.1b (up 22% from FY 2021). Net income: kr139.2m (up 42% from FY 2021). Profit margin: 0.9% (up from 0.7% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 7.0% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 23% per year. Aankondiging • Feb 10
Ework Group AB (Publ) Proposes Dividend Ework Group AB (publ) has decided to propose a dividend of SEK 6.50 per share to the upcoming Annual General Meeting. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to kr149, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 17x in the Professional Services industry in Sweden. Total returns to shareholders of 99% over the past three years. Aankondiging • Jan 04
Ework Group AB (publ)(OM:EWRK) dropped from OMX Nordic Small Cap Index eWork Scandinavia AB (publ) has been removed from OMX Nordic Small Cap Index. Recent Insider Transactions • Dec 27
Insider recently sold kr640k worth of stock On the 22nd of December, Peter Lundahl sold around 5k shares on-market at roughly kr123 per share. This transaction amounted to 40% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth kr9.2m. Insiders have been net sellers, collectively disposing of kr6.7m more than they bought in the last 12 months. Reported Earnings • Oct 22
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: kr2.02 (up from kr1.06 in 3Q 2021). Revenue: kr3.49b (up 24% from 3Q 2021). Net income: kr34.8m (up 90% from 3Q 2021). Profit margin: 1.0% (up from 0.7% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) also surpassed analyst estimates by 96%. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Professional Services industry in Sweden. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 19% per year. Aankondiging • Oct 21
Ework Group AB (publ) to Report Fiscal Year 2022 Results on Feb 09, 2023 Ework Group AB (publ) announced that they will report fiscal year 2022 results on Feb 09, 2023 Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment improved over the past week After last week's 21% share price gain to kr112, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 14x in the Professional Services industry in Sweden. Total returns to shareholders of 76% over the past three years. Reported Earnings • Jul 19
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: kr1.50 (up from kr1.41 in 2Q 2021). Revenue: kr3.97b (up 19% from 2Q 2021). Net income: kr25.8m (up 6.2% from 2Q 2021). Profit margin: 0.7% (in line with 2Q 2021). Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 26%. Over the next year, revenue is forecast to grow 10%, compared to a 11% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 15% per year. Reported Earnings • May 03
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: kr2.05 (up from kr1.29 in 1Q 2021). Revenue: kr3.92b (up 24% from 1Q 2021). Net income: kr35.3m (up 59% from 1Q 2021). Profit margin: 0.9% (up from 0.7% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.8%. Earnings per share (EPS) also surpassed analyst estimates by 22%. Over the next year, revenue is forecast to grow 7.6%, compared to a 15% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 17% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Apr 27
Upcoming dividend of kr5.00 per share Eligible shareholders must have bought the stock before 03 May 2022. Payment date: 09 May 2022. Payout ratio is on the higher end at 88%, and the cash payout ratio is above 100%. Trailing yield: 4.2%. Lower than top quartile of Swedish dividend payers (4.7%). Higher than average of industry peers (2.1%). Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 1 experienced director. 5 highly experienced directors. Director Frida Westerberg was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 15
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: kr5.68 (up from kr4.02 in FY 2020). Revenue: kr13.2b (up 7.8% from FY 2020). Net income: kr98.0m (up 41% from FY 2020). Profit margin: 0.7% (up from 0.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the next year, revenue is forecast to grow 12%, compared to a 17% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Reported Earnings • Feb 11
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: kr5.68 (up from kr4.02 in FY 2020). Revenue: kr13.2b (up 7.8% from FY 2020). Net income: kr98.0m (up 41% from FY 2020). Profit margin: 0.7% (up from 0.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the next year, revenue is forecast to grow 7.8%, compared to a 17% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Recent Insider Transactions • Oct 21
Chief Financial Officer recently bought kr117k worth of stock On the 19th of October, Ola Maalsnes bought around 1k shares on-market at roughly kr117 per share. This was the largest purchase by an insider in the last 3 months. This was Ola's only on-market trade for the last 12 months. Reported Earnings • Oct 20
Third quarter 2021 earnings released: EPS kr1.06 (vs kr0.87 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: kr2.82b (up 14% from 3Q 2020). Net income: kr18.3m (up 22% from 3Q 2020). Profit margin: 0.7% (up from 0.6% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Recent Insider Transactions • Aug 15
Insider recently sold kr124k worth of stock On the 12th of August, Pernilla Nilsson sold around 1k shares on-market at roughly kr120 per share. In the last 3 months, they made an even bigger sale worth kr288k. Insiders have been net sellers, collectively disposing of kr985k more than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Aug 09
Investor sentiment improved over the past week After last week's 16% share price gain to kr119, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 23x in the IT industry in Sweden. Total returns to shareholders of 40% over the past three years. Recent Insider Transactions • Jul 27
Insider recently sold kr288k worth of stock On the 23rd of July, Pernilla Nilsson sold around 3k shares on-market at roughly kr104 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of kr609k more than they bought in the last 12 months.