InfraCom Group (NGM:INFRA) - Share price, News & Analysis

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

INFRA (SEK25) is trading below our estimate of [[fair value]] (SEK53.39)

INFRA fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	4/6
Dividends	3/6

INFRA Stock Overview

InfraCom Group AB (publ) provides cloud-based telephony, IT, and network services.

Rewards

Trading at 53.2% below our estimate of its fair value

Earnings have grown 39.8% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (SEK787M)

InfraCom Group Competitors

Novotek

OM:NTEK B

kr657.2m

CAG Group

OM:CAG

kr605.9m

Generic Sweden

OM:GENI

kr600.5m

B3 Consulting Group

OM:B3

kr1.1b

Price History & Performance

Summary of all time highs, changes and price drops for InfraCom Group
Historical stock prices
Current Share Price	kr25.00
52 Week High	kr34.60
52 Week Low	kr19.25
Beta	1.28
1 Month Change	7.76%
3 Month Change	7.76%
1 Year Change	12.61%
3 Year Change	130.42%
5 Year Change	n/a
Change since IPO	167.38%

Recent News & Updates

Aug 06

Do InfraCom Group's (NGM:INFRA) Earnings Warrant Your Attention?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Mar 09

Here's Why I Think InfraCom Group (NGM:INFRA) Might Deserve Your Attention Today

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	INFRA	SE IT	SE Market
7D	-3.8%	1.7%	2.3%
1Y	12.6%	-18.9%	-21.8%

Return vs Industry: INFRA exceeded the Swedish IT industry which returned -18.9% over the past year.

Return vs Market: INFRA exceeded the Swedish Market which returned -21.8% over the past year.

Price Volatility

Is INFRA's price volatile compared to industry and market?
INFRA volatility
INFRA Average Weekly Movement	4.8%
IT Industry Average Movement	6.9%
Market Average Movement	7.2%
10% most volatile stocks in SE Market	12.6%
10% least volatile stocks in SE Market	4.5%

Stable Share Price: INFRA is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: INFRA's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	117	Bo Kjellberg	https://infracom.se

InfraCom Group AB (publ) provides cloud-based telephony, IT, and network services. It offers teams, international, and mobile telephony services; and InFinity cloud switch services. The company also provides various application, Workplace as a Service, and cloud services, such as Office365, backup, cloud-based storage, virtual servers, IT security solutions, antivirus, spam filtering, monitoring, and alarms, as well as managed services and domains and DNS.

InfraCom Group Fundamentals Summary

How do InfraCom Group's earnings and revenue compare to its market cap?
INFRA fundamental statistics
Market Cap	kr812.69m
Earnings (TTM)	kr49.22m
Revenue (TTM)	kr285.84m

16.0x

P/E Ratio

2.8x

P/S Ratio

Is INFRA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
INFRA income statement (TTM)
Revenue	kr285.84m
Cost of Revenue	kr192.95m
Gross Profit	kr92.88m
Other Expenses	kr43.67m
Earnings	kr49.22m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.56
Gross Margin	32.50%
Net Profit Margin	17.22%
Debt/Equity Ratio	12.7%

How did INFRA perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

32%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is INFRA 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-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 INFRA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for INFRA. This is calculated by dividing INFRA's market cap by their current preferred multiple.
What is INFRA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr812.69m

INFRA 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	2.8x
Enterprise Value/EBITDA	11.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does INFRA's PE Ratio compare to its peers?

INFRA PE Ratio vs Peers

The above table shows the PE ratio for INFRA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.4x
NTEK B Novotek	16.5x	n/a	kr657.2m
CAG CAG Group	17.5x	11.9%	kr605.9m
GENI Generic Sweden	32.6x	12.7%	kr600.5m
B3 B3 Consulting Group	14.7x	-36.5%	kr1.1b
INFRA InfraCom Group	16x	n/a	kr812.7m

Price-To-Earnings vs Peers: INFRA is good value based on its Price-To-Earnings Ratio (16x) compared to the peer average (20.3x).

Price to Earnings Ratio vs Industry

How does INFRA's PE Ratio compare vs other companies in the European IT Industry?

Price-To-Earnings vs Industry: INFRA is good value based on its Price-To-Earnings Ratio (16x) compared to the Swedish IT industry average (16x)

Price to Earnings Ratio vs Fair Ratio

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

INFRA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate INFRA's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: INFRA (SEK25) is trading below our estimate of fair value (SEK53.39)

Significantly Below Fair Value: INFRA 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 InfraCom Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

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

10.7%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if INFRA's forecast earnings growth is above the savings rate (0.4%).

Earnings vs Market: Insufficient data to determine if INFRA's earnings are forecast to grow faster than the Swedish market

High Growth Earnings: Insufficient data to determine if INFRA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: INFRA's revenue (10.7% per year) is forecast to grow slower than the Swedish market (10.9% per year).

High Growth Revenue: INFRA's revenue (10.7% 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 INFRA's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has InfraCom Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

39.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: INFRA has high quality earnings.

Growing Profit Margin: INFRA's current net profit margins (17.2%) are higher than last year (16.5%).

Past Earnings Growth Analysis

Earnings Trend: INFRA's earnings have grown significantly by 39.8% per year over the past 5 years.

Accelerating Growth: INFRA's earnings growth over the past year (30.1%) is below its 5-year average (39.8% per year).

Earnings vs Industry: INFRA earnings growth over the past year (30.1%) underperformed the IT industry 40%.

Return on Equity

High ROE: INFRA's Return on Equity (24%) is considered high.

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Financial Health

How is InfraCom Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: INFRA's short term assets (SEK77.5M) do not cover its short term liabilities (SEK83.5M).

Long Term Liabilities: INFRA's short term assets (SEK77.5M) exceed its long term liabilities (SEK31.6M).

Debt to Equity History and Analysis

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

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

Debt Coverage: INFRA's debt is well covered by operating cash flow (251.5%).

Interest Coverage: INFRA's interest payments on its debt are well covered by EBIT (64.7x coverage).

Balance Sheet

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Dividend

What is InfraCom Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

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

2.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: INFRA's dividend (2%) is higher than the bottom 25% of dividend payers in the Swedish market (1.43%).

High Dividend: INFRA's dividend (2%) is low compared to the top 25% of dividend payers in the Swedish market (5.3%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether INFRA's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if INFRA's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.5%), INFRA's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (25.9%), INFRA's dividend payments are well covered by cash flows.

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Management

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

CEO

Bo Kjellberg

no data

Tenure

Mr. Bo Kjellberg is the Chief Executive Officer and Director at InfraCom Group AB (publ). Mr. Kjellberg is Principal Owner and Founder of Parent Company InfraCom Group AB (publ) and Founded PIN Sweden AB i...

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	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31