DB:SF7

Stock Analysis Report

Executive Summary

Softronic AB provides IT and management services in primarily in Sweden.

Rewards

PE ratio (19.2x) is below the German market (20.7x)

Pays a high and reliable dividend of 3.87%

Risk Analysis

No risks detected for SF7 from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.

Share Price & News

How has Softronic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SF7 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.7%

SF7

-3.1%

DE IT

0.2%

DE Market


1 Year Return

16.9%

SF7

36.1%

DE IT

14.4%

DE Market

Return vs Industry: SF7 underperformed the German IT industry which returned 36.1% over the past year.

Return vs Market: SF7 exceeded the German Market which returned 14.4% over the past year.


Shareholder returns

SF7IndustryMarket
7 Day6.7%-3.1%0.2%
30 Day2.8%6.5%0.9%
90 Day18.9%18.4%4.6%
1 Year23.8%16.9%37.0%36.1%17.9%14.4%
3 Year132.1%98.4%158.4%151.4%15.7%5.6%
5 Year246.2%161.4%239.1%225.2%23.4%6.5%

Price Volatility Vs. Market

How volatile is Softronic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Softronic undervalued compared to its fair value and its price relative to the market?

19.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SF7 (€1.79) is trading above our estimate of fair value (€1.31)

Significantly Below Fair Value: SF7 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SF7 is good value based on its PE Ratio (19.2x) compared to the IT industry average (33.1x).

PE vs Market: SF7 is good value based on its PE Ratio (19.2x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SF7's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SF7 is good value based on its PB Ratio (4x) compared to the DE IT industry average (4.7x).


Next Steps

Future Growth

How is Softronic forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.6%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Softronic has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Softronic performed over the past 5 years?

20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SF7 has high quality earnings.

Growing Profit Margin: SF7's current net profit margins (7.3%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: SF7's earnings have grown significantly by 20.8% per year over the past 5 years.

Accelerating Growth: SF7's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SF7 had negative earnings growth (-5.9%) over the past year, making it difficult to compare to the IT industry average (16.1%).


Return on Equity

High ROE: SF7's Return on Equity (20.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Softronic's financial position?


Financial Position Analysis

Short Term Liabilities: SF7's short term assets (SEK260.6M) exceed its short term liabilities (SEK137.2M).

Long Term Liabilities: SF7's short term assets (SEK260.6M) exceed its long term liabilities (SEK30.0M).


Debt to Equity History and Analysis

Debt Level: SF7 is debt free.

Reducing Debt: SF7 has not had any debt for past 5 years.

Debt Coverage: SF7 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SF7 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SF7 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SF7's debt is covered by short term assets.


Next Steps

Dividend

What is Softronic's current dividend yield, its reliability and sustainability?

3.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SF7's dividend (3.87%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: SF7's dividend (3.87%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: SF7's dividends per share have been stable in the past 10 years.

Growing Dividend: SF7's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.3%), SF7's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

16.1yrs

Average management tenure


CEO

Per Adolfsson (59yo)

0.8yrs

Tenure

Mr. Per Adolfsson has been Chief Executive Officer at Softronic AB since April 2019. 


Leadership Team

NamePositionTenureCompensationOwnership
Per Adolfsson
Chief Executive Officer0.8yrsno datano data
Anders Bergman
Chief Financial Officer16.1yrsno datano data
Mathias Kjellberg
Chief Operating Officer21.1yrsno datano data
Claes Brickell
Head of Sales0yrsno datano data
Joachim Lundberg
Manager of Group Functions0yrsno datano data

16.1yrs

Average Tenure

54yo

Average Age

Experienced Management: SF7's management team is seasoned and experienced (16.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Petter Stillström
Director12.1yrskr170.00kno data
Anders Eriksson
Chairman of the Board0yrskr3.83m21.27% SEK20.5m
Stig Martin
Director36.1yrskr85.00k8.05% SEK7.8m
Susanna Marcus
Director4.1yrsno datano data
Cecilia Nilsson
Director17.1yrsno datano data
Tomas Hogstom
Director10.1yrsno datano data
Britten Wennman
Director1.1yrsno datano data
Victoria Bohlin
Director1.1yrsno datano data

10.1yrs

Average Tenure

54.5yo

Average Age

Experienced Board: SF7's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Softronic AB's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Softronic AB
  • Ticker: SF7
  • Exchange: DB
  • Founded: 1984
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: kr1.021b
  • Listing Market Cap: kr96.548m
  • Shares outstanding: 52.63m
  • Website: https://www.softronic.se

Location

  • Softronic AB
  • Hammarby kaj 10A
  • Stockholm
  • 120 32
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOF BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKDec 1998
0GU8LSE (London Stock Exchange)YesClass B SharesGBSEKDec 1998
SF7DB (Deutsche Boerse AG)YesClass B SharesDEEURDec 1998
SOFBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKDec 1998

Biography

Softronic AB provides IT and management services in primarily in Sweden. The company offers scanning, application hosting, secure communication, digital sales platform, cyber defense as a service, compliance manager, business system, office support, travel and event, issue management system, e-commerce, e-health, insurance system, and digitization solutions. It also provides artificial intelligence, member system, premium solution partner, digital market communication, IT and business management, customer care system, and outsourcing solutions, as well as solutions for administration and communication between students, teachers, and parents. Softronic AB was founded in 1984 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:15
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.