House of Control Group (OB:HOC) - Share price, News & Analysis

Q: What is the Fair Price of HOC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

HOC (NOK7.2) is trading below our estimate of [[fair value]] (NOK40.14)

HOC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

HOC Stock Overview

House Of Control Group AS develops and sells Software as a Service (SaaS) solutions in the areas of finance and accounting primarily in Norway, Sweden, and Denmark.

Rewards

Trading at 82.1% below our estimate of its fair value

Revenue is forecast to grow 15.41% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

Does not have a meaningful market cap (NOK411M)

House of Control Group Competitors

Ørn Software Holding

OB:ORN

kr585.3m

DLTx

OB:DLTX

kr292.6m

Mintra Holding

OB:MNTR

kr715.8m

River Tech

OB:RIVER

kr1.1b

Price History & Performance

Summary of all time highs, changes and price drops for House of Control Group
Historical stock prices
Current Share Price	kr7.20
52 Week High	kr25.75
52 Week Low	kr5.38
Beta	0
1 Month Change	22.03%
3 Month Change	4.65%
1 Year Change	-69.36%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-62.11%

Recent News & Updates

Mar 06

New Forecasts: Here's What One Analyst Thinks The Future Holds For House of Control Group AS (OB:HOC)

Celebrations may be in order for House of Control Group AS ( OB:HOC ) shareholders, with the covering analyst...

Feb 20

Analysts Have Lowered Expectations For House of Control Group AS (OB:HOC) After Its Latest Results

House of Control Group AS ( OB:HOC ) came out with its full-year results last week, and we wanted to see how the...

Shareholder Returns

	HOC	NO Software	NO Market
7D	10.8%	0.5%	-0.2%
1Y	-69.4%	-34.7%	8.9%

Return vs Industry: HOC underperformed the Norwegian Software industry which returned -32.9% over the past year.

Return vs Market: HOC underperformed the Norwegian Market which returned 9.2% over the past year.

Price Volatility

Is HOC's price volatile compared to industry and market?
HOC volatility
HOC Average Weekly Movement	10.6%
Software Industry Average Movement	9.6%
Market Average Movement	6.8%
10% most volatile stocks in NO Market	12.6%
10% least volatile stocks in NO Market	3.8%

Stable Share Price: HOC is more volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: HOC's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Norwegian stocks.

About the Company

Founded	Employees	CEO	Website
2006	135	Lasse Sten	https://www.houseofcontrol.com

House Of Control Group AS develops and sells Software as a Service (SaaS) solutions in the areas of finance and accounting primarily in Norway, Sweden, and Denmark. The company offers Complete Control, a cloud-based SaaS solution for creating, gathering, storing, and finding contracts, agreements, subscriptions, leases and other types of agreements; International Financial Reporting Standards (IFRS) 16 Compliance, which assists companies in complying with IFRS 16 requirements; CFO Dashboards to organize financial and operational data into one central hub; Egreement API, a tool for organizations that need to streamline by digitizing contract processes; BankID identification, a security and brand experience solution, which enables remote communication and streamlines work across digital platforms; and Effectplan, a budgeting and forecasting tool that enables Controllers and the CFOs to create, manage and modify the budget. It also offers Fintech Outsourcing Register Solution, a contract register to document each individual contract; Digital Signature, a verified digital identity solution for various documents; Security labels that safeguards PCs and other equipment; Authority Matrix, a cloud application that shows who has the authority to do what and it is easy to update; Complete Procure, an organization’s own web shop, where employees purchase at a lower cost, paperwork is automatic, and the supplier does the routine work; and Supplier Portal, a smart fix to keep down complexity and work-load when the number of suppliers grow.

House of Control Group Fundamentals Summary

How do House of Control Group's earnings and revenue compare to its market cap?
HOC fundamental statistics
Market Cap	kr411.12m
Earnings (TTM)	-kr121.65m
Revenue (TTM)	kr191.48m

2.1x

P/S Ratio

-3.4x

P/E Ratio

Is HOC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HOC income statement (TTM)
Revenue	kr191.48m
Cost of Revenue	kr148.81m
Gross Profit	kr42.68m
Other Expenses	kr164.33m
Earnings	-kr121.65m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)	-2.13
Gross Margin	22.29%
Net Profit Margin	-63.53%
Debt/Equity Ratio	48.1%

How did HOC perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is HOC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HOC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HOC. This is calculated by dividing HOC's market cap by their current preferred multiple.
What is HOC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr411.12m

HOC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	-5.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does HOC's PS Ratio compare to its peers?

HOC PS Ratio vs Peers

The above table shows the PS ratio for HOC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	6.4x
ORN Ørn Software Holding	2.5x	9.7%	kr585.3m
DLTX DLTx	9.6x	n/a	kr292.6m
MNTR Mintra Holding	3x	3.3%	kr715.8m
RIVER River Tech	10.6x	n/a	kr1.1b
HOC House of Control Group	2.1x	15.4%	kr411.1m

Price-To-Sales vs Peers: HOC is good value based on its Price-To-Sales Ratio (2.1x) compared to the peer average (6.4x).

Price to Earnings Ratio vs Industry

How does HOC's PE Ratio compare vs other companies in the NO Software Industry?

Price-To-Sales vs Industry: HOC is good value based on its Price-To-Sales Ratio (2.1x) compared to the Norwegian Software industry average (3.1x)

Price to Sales Ratio vs Fair Ratio

What is HOC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HOC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.1x
Fair PS Ratio	1.2x

Price-To-Sales vs Fair Ratio: HOC is expensive based on its Price-To-Sales Ratio (2.1x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

Share Price vs Fair Value

What is the Fair Price of HOC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HOC (NOK7.2) is trading below our estimate of fair value (NOK40.14)

Significantly Below Fair Value: HOC is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is House of Control Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

54.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HOC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HOC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HOC's revenue (15.4% per year) is forecast to grow faster than the Norwegian market (-1% per year).

High Growth Revenue: HOC's revenue (15.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if HOC's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has House of Control Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-48.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HOC is currently unprofitable.

Growing Profit Margin: HOC is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: HOC is unprofitable, and losses have increased over the past 5 years at a rate of 48.6% per year.

Accelerating Growth: Unable to compare HOC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HOC is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (16%).

Return on Equity

High ROE: HOC has a negative Return on Equity (-61.09%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is House of Control Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: HOC's short term assets (NOK180.5M) exceed its short term liabilities (NOK158.0M).

Long Term Liabilities: HOC's short term assets (NOK180.5M) exceed its long term liabilities (NOK127.2M).

Debt to Equity History and Analysis

Debt Level: HOC has more cash than its total debt.

Reducing Debt: Insufficient data to determine if HOC's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HOC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HOC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

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Dividend

What is House of Control Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate HOC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HOC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HOC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HOC's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HOC has not reported any payouts.

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Management

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

1.3yrs

Average board tenure

CEO

Lasse Sten

16.58yrs

Tenure

Mr. Lasse Sten founded House of Control Group AS in 2006 and has been its Chief Executive Officer since 2006, and also serves as its General Manager. Mr. Sten has contributed greatly to the building of a u...

Board Members

Experienced Board: HOC's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.

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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/08 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31