Major Estimate Revision • May 08
Consensus EPS estimates fall by 41% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from kr1.21b to kr1.19b. EPS estimate also fell from kr4.93 per share to kr2.93 per share. Net income forecast to grow 490% next year vs 35% growth forecast for IT industry in Sweden. Consensus price target of kr92.50 unchanged from last update. Share price was steady at kr27.70 over the past week. Reported Earnings • May 05
First quarter 2026 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2026 results: EPS: kr0.12 (down from kr0.72 in 1Q 2025). Revenue: kr305.5m (down 5.6% from 1Q 2025). Net income: kr1.10m (down 83% from 1Q 2025). Profit margin: 0.4% (down from 2.0% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) missed analyst estimates by 86%. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 42% per year whereas the company’s share price has fallen by 43% per year. Price Target Changed • May 04
Price target increased by 59% to kr155 Up from kr97.50, the current price target is provided by 1 analyst. New target price is 454% above last closing price of kr28.00. Stock is down 55% over the past year. The company is forecast to post earnings per share of kr3.44 for next year compared to kr1.20 last year. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to kr28.20, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 14x in the IT industry in Sweden. Total loss to shareholders of 79% over the past three years. Announcement • Apr 12
B3 Consulting Group AB (publ), Annual General Meeting, May 13, 2026 B3 Consulting Group AB (publ), Annual General Meeting, May 13, 2026, at 14:00 W. Europe Standard Time. Location: company premises at wallingatan 2, 111 60, stockholm Sweden Price Target Changed • Feb 23
Price target decreased by 11% to kr97.50 Down from kr110, the current price target is an average from 2 analysts. New target price is 178% above last closing price of kr35.10. Stock is down 48% over the past year. The company is forecast to post earnings per share of kr3.62 for next year compared to kr1.20 last year. Reported Earnings • Feb 22
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: kr1.20 (down from kr9.57 in FY 2024). Revenue: kr1.21b (up 7.1% from FY 2024). Net income: kr10.9m (down 87% from FY 2024). Profit margin: 0.9% (down from 7.4% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) also missed analyst estimates by 9.9%. Revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 5.6% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has fallen by 40% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Feb 04
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from kr1.52 to kr1.33 per share. Revenue forecast steady at kr1.24b. Net income forecast to grow 1,174% next year vs 18% growth forecast for IT industry in Sweden. Consensus price target of kr103 unchanged from last update. Share price fell 6.2% to kr39.25 over the past week. Reported Earnings • Oct 24
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: kr0.29 loss per share (down from kr8.35 profit in 3Q 2024). Revenue: kr256.3m (up 4.4% from 3Q 2024). Net loss: kr2.70m (down 104% from profit in 3Q 2024). Revenue missed analyst estimates by 7.0%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has fallen by 33% per year, which means it is performing significantly worse than earnings. Recent Insider Transactions • Sep 05
Business Area Manager for Digital recently bought kr51k worth of stock On the 2nd of September, Anders Nilsson bought around 970 shares on-market at roughly kr52.70 per share. This transaction amounted to 72% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth kr93k. Insiders have collectively bought kr219k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Aug 13
Insider recently bought kr75k worth of stock On the 11th of August, Fredrik Dolleus bought around 1k shares on-market at roughly kr53.59 per share. This transaction amounted to 16% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth kr93k. Insiders have collectively bought kr253k more in shares than they have sold in the last 12 months. Major Estimate Revision • Aug 06
Consensus EPS estimates increase by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from kr1.27b to kr1.30b. EPS estimate increased from kr2.22 to kr2.58 per share. Net income forecast to shrink 53% next year vs 18% growth forecast for IT industry in Sweden . Consensus price target of kr110 unchanged from last update. Share price was steady at kr52.00 over the past week. Recent Insider Transactions • Jul 23
President & CEO recently bought kr93k worth of stock On the 16th of July, Martin Stenström bought around 2k shares on-market at roughly kr56.00 per share. This transaction amounted to 3.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Martin's only on-market trade for the last 12 months. Recent Insider Transactions • Jul 18
President & CEO recently bought kr93k worth of stock On the 16th of July, Martin Stenström bought around 2k shares on-market at roughly kr56.00 per share. This transaction amounted to 3.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Martin's only on-market trade for the last 12 months. Reported Earnings • Jul 17
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: kr0.033 (down from kr0.61 in 2Q 2024). Revenue: kr315.6m (up 19% from 2Q 2024). Net income: kr300.0k (down 94% from 2Q 2024). Profit margin: 0.1% (down from 2.0% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 6.4%. Earnings per share (EPS) also missed analyst estimates by 97%. Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has fallen by 25% per year, which means it is performing significantly worse than earnings. Price Target Changed • Jul 16
Price target decreased by 12% to kr110 Down from kr126, the current price target is an average from 2 analysts. New target price is 96% above last closing price of kr56.00. Stock is down 34% over the past year. The company is forecast to post earnings per share of kr2.58 for next year compared to kr9.57 last year. New Risk • Jul 16
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.2% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 Interest payments are not well covered by earnings (2.2x net interest cover). Earnings are forecast to decline by an average of 1.2% per year for the foreseeable future. High level of non-cash earnings (23% accrual ratio). Minor Risk Market cap is less than US$100m (kr544.0m market cap, or US$55.8m). Reported Earnings • Apr 25
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: kr0.73 (up from kr0.64 in 1Q 2024). Revenue: kr324.0m (up 15% from 1Q 2024). Net income: kr6.60m (up 25% from 1Q 2024). Profit margin: 2.0% (up from 1.9% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 2.5%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Apr 22
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to kr64.50, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 17x in the IT industry in Sweden. Total loss to shareholders of 42% over the past three years. Announcement • Apr 03
B3 Consulting Group AB (publ), Annual General Meeting, May 07, 2025 B3 Consulting Group AB (publ), Annual General Meeting, May 07, 2025, at 14:00 W. Europe Standard Time. Location: at wallingatan 2, 111 60 stockholm Sweden Major Estimate Revision • Mar 28
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from kr7.04 to kr6.20 per share. Revenue forecast steady at kr1.39b. Net income forecast to shrink 33% next year vs 9.1% growth forecast for IT industry in Sweden . Consensus price target down from kr128 to kr124. Share price fell 2.4% to kr62.30 over the past week. Reported Earnings • Feb 20
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: kr9.56 (up from kr7.12 in FY 2023). Revenue: kr1.13b (down 1.0% from FY 2023). Net income: kr83.3m (up 38% from FY 2023). Profit margin: 7.4% (up from 5.3% in FY 2023). Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) also missed analyst estimates by 13%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Announcement • Feb 20
B3 Consulting Group AB (publ) (OM:B3) signed an agreement to acquire 51% stake in Habberstad As for NOK 15.8 million. B3 Consulting Group AB (publ) (OM:B3) signed an agreement to acquire 51% stake in Habberstad As for NOK 15.8 million on February 19, 2025. A cash consideration of NOK 15.8 million will be paid by B3 Consulting Group AB (publ). As part of consideration, NOK 15.8 million is paid towards common equity of Habberstad As. The company will remain intact with current management, branding and own internal functions. No cost initiatives will be taken.
For the period ending December 31, 2024, Habberstad As reported total revenue of NOK 78.6 million and EBIT of NOK 5.6 million. Major Estimate Revision • Dec 03
Consensus EPS estimates increase by 63% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from kr6.80 to kr11.09. Revenue forecast steady at kr1.15b. Net income forecast to shrink 14% next year vs 14% growth forecast for IT industry in Sweden . Consensus price target of kr130 unchanged from last update. Share price was steady at kr76.20 over the past week. New Risk • Dec 02
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.9% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 Debt is not well covered by operating cash flow (2.2% operating cash flow to total debt). Earnings are forecast to decline by an average of 3.9% per year for the foreseeable future. High level of non-cash earnings (32% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (2.7% increase in shares outstanding). Market cap is less than US$100m (kr652.4m market cap, or US$59.5m). Major Estimate Revision • Nov 26
Consensus EPS estimates fall by 39% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from kr11.09 to kr6.80 per share. Revenue forecast steady at kr1.14b. Net income forecast to shrink 31% next year vs 14% growth forecast for IT industry in Sweden . Consensus price target of kr130 unchanged from last update. Share price was steady at kr75.80 over the past week. Upcoming Dividend • Nov 06
Upcoming dividend of kr3.50 per share Eligible shareholders must have bought the stock before 13 November 2024. Payment date: 19 November 2024. Payout ratio is a comfortable 32% but the company is not cash flow positive. Trailing yield: 4.6%. Within top quartile of Swedish dividend payers (4.6%). Higher than average of industry peers (2.3%). Major Estimate Revision • Oct 30
Consensus EPS estimates increase by 322% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from kr2.63 to kr11.10. Revenue forecast steady at kr1.15b. Net income forecast to shrink 14% next year vs 15% growth forecast for IT industry in Sweden . Consensus price target broadly unchanged at kr130. Share price rose 3.4% to kr79.00 over the past week. New Risk • Oct 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.7% 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 Debt is not well covered by operating cash flow (2.2% operating cash flow to total debt). Earnings are forecast to decline by an average of 3.7% per year for the foreseeable future. High level of non-cash earnings (32% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (2.7% increase in shares outstanding). Market cap is less than US$100m (kr728.0m market cap, or US$68.5m). Reported Earnings • Oct 24
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: kr8.65 (up from kr1.05 in 3Q 2023). Revenue: kr245.3m (up 9.9% from 3Q 2023). Net income: kr74.3m (up kr65.1m from 3Q 2023). Profit margin: 30% (up from 4.1% in 3Q 2023). The increase in margin was primarily driven by lower expenses. Revenue exceeded analyst estimates by 4.2%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 4% per year. Major Estimate Revision • Oct 16
Consensus EPS estimates fall by 17% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from kr3.17 to kr2.63 per share. Revenue forecast steady at kr1.14b. Net income forecast to grow 83% next year vs 16% growth forecast for IT industry in Sweden. Consensus price target of kr132 unchanged from last update. Share price fell 4.1% to kr78.00 over the past week. Major Estimate Revision • Sep 24
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from kr1.17b to kr1.15b. EPS estimate also fell from kr3.71 per share to kr3.17 per share. Net income forecast to grow 113% next year vs 19% growth forecast for IT industry in Sweden. Consensus price target of kr132 unchanged from last update. Share price was steady at kr86.90 over the past week. Recent Insider Transactions • Aug 21
Manager of Communications & IR recently bought kr86k worth of stock On the 16th of August, Katarina Lundqvist bought around 1k shares on-market at roughly kr85.59 per share. This transaction amounted to 31% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr403k more in shares than they have sold in the last 12 months. Buy Or Sell Opportunity • Aug 07
Now 22% undervalued Over the last 90 days, the stock has risen 8.2% to kr76.70. The fair value is estimated to be kr98.16, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.9% over the last 3 years. Earnings per share has grown by 6.7%. Revenue is forecast to grow by 41% in 2 years. Earnings are forecast to grow by 242% in the next 2 years. Major Estimate Revision • Jul 23
Consensus EPS estimates fall by 24%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from kr1.15b to kr1.17b. EPS estimate fell from kr4.90 to kr3.71 per share. Net income forecast to grow 112% next year vs 24% growth forecast for IT industry in Sweden. Consensus price target up from kr122 to kr132. Share price rose 2.2% to kr85.30 over the past week. Price Target Changed • Jul 18
Price target increased by 9.6% to kr132 Up from kr120, the current price target is an average from 2 analysts. New target price is 55% above last closing price of kr85.00. Stock is down 15% over the past year. The company is forecast to post earnings per share of kr3.71 for next year compared to kr7.12 last year. New Risk • Jul 17
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 3.7% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (3.7% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 107% Dividend per share is over 18x cash flows per share. Minor Risks Profit margins are more than 30% lower than last year (2.6% net profit margin). Market cap is less than US$100m (kr692.9m market cap, or US$65.8m). Announcement • Jul 10
B3 Consulting Group AB (publ) (OM:B3) completed the acquisition of Webstep AB from Webstep AS. B3 Consulting Group AB (publ) (OM:B3) agreed to acquire Webstep AB from Webstep AS for SEK 50.9 million on May 23, 2024. The consideration consists of SEK 25.49 million in cash and SEK 25.49 million in non-convertible debt. As part of the consideration, SEK 50.98 million was paid towards common equity. The transaction is subject to applicable regulatory approvals and other customary closing conditions. The transaction is expected to close in H2 2024.Pareto Securities AB acted as Financial Advisor to Webstep AS.
B3 Consulting Group AB (publ) (OM:B3) completed the acquisition of Webstep AB from Webstep AS on July 9, 2024. Announcement • May 25
B3 Consulting Group AB (publ) (OM:B3) agreed to acquire Webstep AB from Webstep AS for SEK 51 million. B3 Consulting Group AB (publ) (OM:B3) agreed to acquire Webstep AB from Webstep AS for SEK 50.9 million on May 23, 2024. The consideration consists of SEK 25.49 million in cash and SEK 25.49 million in non-convertible debt. As part of the consideration, SEK 50.98 million was paid towards common equity. The transaction is subject to applicable regulatory approvals and other customary closing conditions. The transaction is expected to close in H2 2024. Buy Or Sell Opportunity • Apr 25
Now 27% undervalued after recent price drop Over the last 90 days, the stock has fallen 26% to kr68.60. The fair value is estimated to be kr93.55, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 25%. Revenue is forecast to grow by 13% in 2 years. Earnings are forecast to grow by 165% in the next 2 years. Price Target Changed • Apr 25
Price target decreased by 13% to kr120 Down from kr138, the current price target is an average from 2 analysts. New target price is 58% above last closing price of kr76.00. Stock is down 62% over the past year. The company is forecast to post earnings per share of kr7.72 for next year compared to kr7.12 last year. Price Target Changed • Apr 09
Price target decreased by 8.1% to kr130 Down from kr142, the current price target is an average from 2 analysts. New target price is 51% above last closing price of kr86.20. Stock is down 57% over the past year. The company is forecast to post earnings per share of kr7.96 for next year compared to kr7.12 last year. Recent Insider Transactions • Feb 23
Manager of Communications & IR recently bought kr101k worth of stock On the 16th of February, Katarina Lundqvist bought around 1k shares on-market at roughly kr84.15 per share. This transaction amounted to 59% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr865k more in shares than they have sold in the last 12 months. Reported Earnings • Feb 16
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: kr7.12 (down from kr11.83 in FY 2022). Revenue: kr1.14b (flat on FY 2022). Net income: kr60.5m (down 42% from FY 2022). Profit margin: 5.3% (down from 9.0% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.0%. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 8.5% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has increased by 40% 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 • Feb 16
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to kr78.90, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 15x in the IT industry in Sweden. Total returns to shareholders of 89% over the past three years. Reported Earnings • Oct 27
Third quarter 2023 earnings: EPS misses analyst expectations Third quarter 2023 results: EPS: kr1.05 (down from kr2.17 in 3Q 2022). Revenue: kr223.7m (down 5.1% from 3Q 2022). Net income: kr9.20m (down 51% from 3Q 2022). Profit margin: 4.1% (down from 7.9% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Price Target Changed • Oct 05
Price target decreased by 8.6% to kr160 Down from kr175, the current price target is an average from 2 analysts. New target price is 85% above last closing price of kr86.50. Stock is down 34% over the past year. The company is forecast to post earnings per share of kr8.51 for next year compared to kr11.83 last year. Major Estimate Revision • Jul 28
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from kr1.22b to kr1.18b. EPS estimate also fell from kr9.62 per share to kr8.27 per share. Net income forecast to shrink 8.6% next year vs 11% growth forecast for IT industry in Sweden . Consensus price target down from kr188 to kr175. Share price was steady at kr103 over the past week. Reported Earnings • Jul 21
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: kr1.68 (down from kr2.97 in 2Q 2022). Revenue: kr299.8m (up 3.6% from 2Q 2022). Net income: kr14.4m (down 44% from 2Q 2022). Profit margin: 4.8% (down from 8.8% in 2Q 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 2.6%. Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jul 17
Price target decreased by 13% to kr188 Down from kr215, the current price target is an average from 2 analysts. New target price is 88% above last closing price of kr99.50. Stock is down 26% over the past year. The company is forecast to post earnings per share of kr9.62 for next year compared to kr11.83 last year. Major Estimate Revision • Jul 10
Consensus EPS estimates fall by 19% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from kr1.25b to kr1.23b. EPS estimate also fell from kr12.91 per share to kr10.40 per share. Net income forecast to shrink 0.02% next year vs 12% growth forecast for IT industry in Sweden . Consensus price target of kr208 unchanged from last update. Share price fell 3.5% to kr114 over the past week. New Risk • Jun 29
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: kr1.07b (US$99.3m) This is considered a minor 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (3.4% increase in shares outstanding). Market cap is less than US$100m (kr1.07b market cap, or US$99.3m). Recent Insider Transactions • Jun 07
Chairman recently bought kr643k worth of stock On the 2nd of June, Sverre Bjerkeli bought around 5k shares on-market at roughly kr129 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Sverre has been a buyer over the last 12 months, purchasing a net total of kr44m worth in shares. Valuation Update With 7 Day Price Move • May 30
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to kr134, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the IT industry in Sweden. Total returns to shareholders of 334% over the past three years. Reported Earnings • May 04
First quarter 2023 earnings released: EPS: kr3.41 (vs kr3.38 in 1Q 2022) First quarter 2023 results: EPS: kr3.41. Revenue: kr325.2m (up 12% from 1Q 2022). Net income: kr28.9m (flat on 1Q 2022). Profit margin: 8.9% (down from 10.0% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the IT industry in Sweden. Upcoming Dividend • May 04
Upcoming dividend of kr8.00 per share at 5.8% yield Eligible shareholders must have bought the stock before 11 May 2023. Payment date: 17 May 2023. Payout ratio is a comfortable 67% and this is well supported by cash flows. Trailing yield: 5.8%. Within top quartile of Swedish dividend payers (5.1%). Higher than average of industry peers (2.1%). Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to kr157, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 16x in the IT industry in Sweden. Total returns to shareholders of 414% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr308 per share. Reported Earnings • Feb 19
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: kr11.83 (up from kr5.32 in FY 2021). Revenue: kr1.15b (up 25% from FY 2021). Net income: kr103.3m (up 128% from FY 2021). Profit margin: 9.0% (up from 4.9% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 5.6%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 64% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 02
Investor sentiment improved over the past week After last week's 17% share price gain to kr179, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 16x in the IT industry in Sweden. Total returns to shareholders of 318% over the past three years. Recent Insider Transactions • Dec 01
Insider recently sold kr3.4m worth of stock On the 23rd of November, Tommy Sarenbrant sold around 21k shares on-market at roughly kr164 per share. This transaction amounted to 9.0% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth kr11m. Despite this recent sale, insiders have collectively bought kr20m more than they sold in the last 12 months. Major Estimate Revision • Nov 25
Consensus EPS estimates increase by 134% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from kr1.05b to kr1.13b. EPS estimate increased from kr4.79 to kr11.22 per share. Net income forecast to grow 2.7% next year vs 8.3% growth forecast for IT industry in Sweden. Consensus price target of kr225 unchanged from last update. Share price fell 2.6% to kr153 over the past week. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: kr2.17 (vs kr0.57 in 3Q 2021) Third quarter 2022 results: EPS: kr2.17 (up from kr0.57 in 3Q 2021). Revenue: kr235.9m (up 25% from 3Q 2021). Net income: kr18.7m (up 282% from 3Q 2021). Profit margin: 7.9% (up from 2.6% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.5% p.a. on average during the next 2 years, compared to a 9.7% growth forecast for the IT industry in Sweden. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 47% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 22
Second quarter 2022 earnings released: EPS: kr2.97 (vs kr1.37 in 2Q 2021) Second quarter 2022 results: EPS: kr2.97 (up from kr1.37 in 2Q 2021). Revenue: kr289.7m (up 24% from 2Q 2021). Net income: kr25.5m (up 120% from 2Q 2021). Profit margin: 8.8% (up from 5.0% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 3.9%, compared to a 17% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment improved over the past week After last week's 15% share price gain to kr115, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 17x in the IT industry in Sweden. Total returns to shareholders of 85% over the past three years. Board Change • May 20
High number of new directors Independent Director Leif Frykman was the last director to join the board, commencing their role in 2022. Recent Insider Transactions • May 04
Insider recently sold kr3.1m worth of stock On the 29th of April, Fredrik Blomgren sold around 24k shares on-market at roughly kr132 per share. In the last 3 months, there was an even bigger sale from another insider worth kr4.1m. Insiders have been net sellers, collectively disposing of kr11m more than they bought in the last 12 months. Upcoming Dividend • May 02
Upcoming dividend of kr3.50 per share Eligible shareholders must have bought the stock before 09 May 2022. Payment date: 13 May 2022. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Swedish dividend payers (4.6%). Higher than average of industry peers (2.0%). Reported Earnings • Apr 27
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: kr3.38 (up from kr0.71 in 1Q 2021). Revenue: kr292.4m (up 28% from 1Q 2021). Net income: kr29.0m (up 392% from 1Q 2021). Profit margin: 9.9% (up from 2.6% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.6%. Earnings per share (EPS) exceeded analyst estimates by 31%. Over the next year, revenue is forecast to grow 7.9%, compared to a 18% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Feb 23
Insider recently sold kr4.1m worth of stock On the 21st of February, Tommy Sarenbrant sold around 42k shares on-market at roughly kr97.00 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of kr7.4m more than they bought in the last 12 months. Reported Earnings • Feb 21
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: kr5.32 (up from kr2.89 in FY 2020). Revenue: kr921.9m (up 8.3% from FY 2020). Net income: kr45.3m (up 98% from FY 2020). Profit margin: 4.9% (up from 2.7% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.6%. Earnings per share (EPS) exceeded analyst estimates by 31%. Over the next year, revenue is forecast to grow 13%, compared to a 17% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 17% per year. Reported Earnings • Nov 11
Third quarter 2021 earnings released: EPS kr0.57 (vs kr0.45 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: kr189.0m (up 16% from 3Q 2020). Net income: kr4.90m (up 32% from 3Q 2020). Profit margin: 2.6% (up from 2.3% 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 6% per year whereas the company’s share price has fallen by 2% per year.