New Risk • Nov 13
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 6.9% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 23% per year over the past 5 years. Market cap is less than US$10m (kr62.4m market cap, or US$5.68m). Minor Risk Shareholders have been diluted in the past year (6.9% increase in shares outstanding). Reported Earnings • Aug 28
Full year 2024 earnings released Full year 2024 results: Revenue: kr253.6m (down 19% from FY 2023). Net loss: kr4.64m (down 157% from profit in FY 2023). Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 30% per year, which means it has not declined as severely as earnings. Announcement • May 11
Solidx AB (publ) (NGM:SOLIDX) cancelled the acquisition of Time People Group AB (publ) (NGM:TPGR). Solidx AB (publ) (NGM:SOLIDX) entered into letter of intent to acquire Time People Group AB (publ) (NGM:TPGR) for SEK 140 million on March 4, 2024. The merger is planned to take place through the absorption of TPG by SolidX. SolidX is estimated to have 53% stake and Time People Group is estimated to have 47% stake in new merged entity. Shareholders of Time People Group will receive 4.4 shares in SolidX for every share in Time People Group. Mangold Fondkommission AB (OM:MANG) acted as financial advisor to Time People Group.
Solidx AB (publ) (NGM:SOLIDX) cancelled the acquisition of Time People Group AB (publ) (NGM:TPGR) on May 9, 2024. New Risk • Apr 12
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr108.0m (US$9.95m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Dividend per share is over 9x earnings per share. Paying a dividend despite having no free cash flows. Earnings have declined by 6.2% per year over the past 5 years. Market cap is less than US$10m (kr108.0m market cap, or US$9.95m). Minor Risk Share price has been volatile over the past 3 months (13% average weekly change). New Risk • Apr 09
New major risk - Revenue and earnings growth Earnings have declined by 6.2% 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 Dividend is not well covered by earnings and cash flows. Dividend per share is over 9x earnings per share. Paying a dividend despite having no free cash flows. Earnings have declined by 6.2% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (kr108.0m market cap, or US$10.2m). New Risk • Mar 21
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 13% 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 Share price has been highly volatile over the past 3 months (13% average weekly change). Dividend is not well covered by earnings and cash flows. Dividend per share is over 9x earnings per share. Paying a dividend despite having no free cash flows. High level of non-cash earnings (33% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (0.4% net profit margin). Market cap is less than US$100m (kr126.9m market cap, or US$12.2m). New Risk • Feb 24
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr102.2m (US$9.91m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Dividend per share is over 9x earnings per share. Paying a dividend despite having no free cash flows. High level of non-cash earnings (33% accrual ratio). Market cap is less than US$10m (kr102.2m market cap, or US$9.91m). Minor Risks Share price has been volatile over the past 3 months (9.8% average weekly change). Profit margins are more than 30% lower than last year (0.4% net profit margin). Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to kr17.00, the stock trades at a trailing P/E ratio of 41.3x. Average trailing P/E is 15x in the IT industry in Sweden. Total loss to shareholders of 9.9% over the past three years. Valuation Update With 7 Day Price Move • Oct 11
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to kr17.30, the stock trades at a trailing P/E ratio of 15.5x. Average trailing P/E is 14x in the IT industry in Sweden. Total loss to shareholders of 16% over the past three years. New Risk • Oct 06
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr108.8m (US$9.94m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (14% average weekly change). Dividend is not well covered by earnings and cash flows. Payout ratio: 134% Paying a dividend despite having no free cash flows. High level of non-cash earnings (53% accrual ratio). Market cap is less than US$10m (kr108.8m market cap, or US$9.94m). Minor Risk Profit margins are more than 30% lower than last year (2.6% net profit margin). Upcoming Dividend • Sep 08
Upcoming dividend of kr1.50 per share at 8.0% yield Eligible shareholders must have bought the stock before 15 September 2023. Payment date: 21 September 2023. Payout ratio is a comfortable 71% but the company is not cash flow positive. Trailing yield: 8.0%. Within top quartile of Swedish dividend payers (5.4%). Higher than average of industry peers (3.2%). Buying Opportunity • Aug 17
Now 20% undervalued Over the last 90 days, the stock is up 2.8%. The fair value is estimated to be kr23.24, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 22%. New Risk • Jul 03
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 53% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (53% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (2.6% net profit margin). Market cap is less than US$100m (kr153.7m market cap, or US$14.3m). Reported Earnings • Jul 02
Full year 2023 earnings released: EPS: kr1.12 (vs kr2.46 in FY 2022) Full year 2023 results: EPS: kr1.12 (down from kr2.46 in FY 2022). Revenue: kr314.5m (up 6.7% from FY 2022). Net income: kr8.10m (down 55% from FY 2022). Profit margin: 2.6% (down from 6.1% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Dec 08
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: kr85.5m (up 20% from 2Q 2022). Net income: kr3.78m (down 31% from 2Q 2022). Profit margin: 4.4% (down from 7.7% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Dec 03
Investor sentiment deteriorated over the past week After last week's 22% share price decline to kr23.60, the stock trades at a trailing P/E ratio of 10.3x. Average trailing P/E is 15x in the IT industry in Sweden. Total loss to shareholders of 3.9% over the past three years. Board Change • Nov 16
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 3 non-independent directors. Business Area, People & Culture Manager and Co-opted Board Member Else Pedersen was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Sep 04
First quarter 2023 earnings released First quarter 2023 results: Revenue: kr69.7m (up 24% from 1Q 2022). Net income: kr295.0k (down 80% from 1Q 2022). Profit margin: 0.4% (down from 2.7% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 02
Upcoming dividend of kr1.35 per share Eligible shareholders must have bought the stock before 09 September 2022. Payment date: 15 September 2022. Payout ratio is a comfortable 55% and this is well supported by cash flows. Trailing yield: 4.2%. Lower than top quartile of Swedish dividend payers (5.8%). Higher than average of industry peers (2.1%). Reported Earnings • Jun 30
Full year 2022 earnings released: EPS: kr2.46 (vs kr1.06 in FY 2021) Full year 2022 results: EPS: kr2.46 (up from kr1.06 in FY 2021). Revenue: kr295.1m (up 52% from FY 2021). Net income: kr17.8m (up 133% from FY 2021). Profit margin: 6.0% (up from 3.9% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year and the company’s share price has also increased by 16% per year. Valuation Update With 7 Day Price Move • May 30
Investor sentiment improved over the past week After last week's 16% share price gain to kr36.80, the stock trades at a trailing P/E ratio of 17.9x. Average trailing P/E is 17x in the IT industry in Sweden. Total returns to shareholders of 114% over the past three years. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 4 non-independent directors. Business Area, People & Culture Manager and Co-opted Board Member Else Pedersen was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 05
Third quarter 2022 earnings: Revenues in line with analyst expectations Third quarter 2022 results: Revenue: kr82.6m (up 75% from 3Q 2021). Net income: kr4.00m (up 264% from 3Q 2021). Profit margin: 4.8% (up from 2.3% in 3Q 2021). The increase in margin 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 4% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Dec 05
Second quarter 2022 earnings: Revenues in line with analyst expectations Second quarter 2022 results: Revenue: kr71.3m (up 54% from 2Q 2021). Net income: kr5.50m (up 39% from 2Q 2021). Profit margin: 7.7% (down from 8.6% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 48% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Sep 04
First quarter 2022 earnings released The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: kr56.4m (up 52% from 1Q 2021). Net income: kr1.50m (up kr2.79m from 1Q 2021). Profit margin: 2.7% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Sep 03
Upcoming dividend of kr1.25 per share Eligible shareholders must have bought the stock before 10 September 2021. Payment date: 16 September 2021. Trailing yield: 3.9%. Within top quartile of Swedish dividend payers (3.5%). Higher than average of industry peers (1.7%). Valuation Update With 7 Day Price Move • Sep 02
Investor sentiment improved over the past week After last week's 15% share price gain to kr32.00, the stock trades at a trailing P/E ratio of 30.3x. Average trailing P/E is 28x in the IT industry in Sweden. Total returns to shareholders of 114% over the past three years. Reported Earnings • Jul 01
Full year 2021 earnings released: EPS kr1.06 (vs kr1.12 in FY 2020) The company reported a poor full year result with weaker earnings and revenues, although profit margins were flat. Full year 2021 results: Revenue: kr194.0m (down 6.1% from FY 2020). Net income: kr7.66m (down 5.6% from FY 2020). Profit margin: 3.9% (in line with FY 2020). Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 21% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improved over the past week After last week's 25% share price gain to kr27.00, the stock trades at a trailing P/E ratio of 25.7x. Average trailing P/E is 35x in the IT industry in Sweden. Total returns to shareholders of 85% over the past three years. Reported Earnings • Mar 07
Third quarter 2021 earnings released: EPS kr0.15 (vs kr0.10 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: kr47.3m (down 9.2% from 3Q 2020). Net income: kr1.10m (up 45% from 3Q 2020). Profit margin: 2.3% (up from 1.5% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Dec 31
Time People Group AB (publ) (NGM:TPGR) acquired Olingo Consulting AB for approximately SEK 10 million. Time People Group AB (publ) (NGM:TPGR) acquired Olingo Consulting AB for approximately SEK 10 million on December 30, 2020. The consideration will be paid on a cash and debt free basis.
Time People Group AB (publ) (NGM:TPGR) completed the acquisition of Olingo Consulting AB on December 30, 2020. Is New 90 Day High Low • Dec 12
New 90-day low: kr20.40 The company is down 15% from its price of kr24.00 on 11 September 2020. The Swedish market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 17% over the same period. Is New 90 Day High Low • Oct 30
New 90-day low: kr21.40 The company is down 17% from its price of kr25.80 on 31 July 2020. The Swedish market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 14% over the same period. Is New 90 Day High Low • Sep 30
New 90-day low: kr22.40 The company is down 7.0% from its price of kr24.00 on 02 July 2020. The Swedish market is up 14% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 30% over the same period.