OM:EWRK

Stock Analysis Report

Executive Summary

Ework Group AB (publ) operates as a consultant supplier with focus on IT, telecom, technology, and business development in Sweden, Finland, Denmark, and Norway.


Snowflake Analysis

Undervalued with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EWRK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.0%

EWRK

-0.2%

SE IT

0.3%

SE Market


1 Year Return

-37.8%

EWRK

-28.9%

SE IT

-13.2%

SE Market

Return vs Industry: EWRK underperformed the Swedish IT industry which returned -27.8% over the past year.

Return vs Market: EWRK underperformed the Swedish Market which returned -12.2% over the past year.


Shareholder returns

EWRKIndustryMarket
7 Day10.0%-0.2%0.3%
30 Day-24.4%-23.1%-19.3%
90 Day-30.6%-32.6%-23.1%
1 Year-34.3%-37.8%-27.6%-28.9%-11.0%-13.2%
3 Year-36.2%-44.5%-8.0%-12.7%-0.2%-14.7%
5 Year25.8%-3.1%53.0%38.4%6.0%-16.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EWRK (SEK57.2) is trading below our estimate of fair value (SEK126.79)

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


Price To Earnings Ratio

PE vs Industry: EWRK is good value based on its PE Ratio (13.1x) compared to the IT industry average (14.9x).

PE vs Market: EWRK is good value based on its PE Ratio (13.1x) compared to the Swedish market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: EWRK is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: EWRK is overvalued based on its PB Ratio (6.2x) compared to the SE IT industry average (2.3x).


Next Steps

Future Growth

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

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EWRK's forecast earnings growth (15.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: EWRK's earnings (15.9% per year) are forecast to grow faster than the Swedish market (8% per year).

High Growth Earnings: EWRK's earnings are forecast to grow, but not significantly.

Revenue vs Market: EWRK's revenue (7.7% per year) is forecast to grow faster than the Swedish market (4.1% per year).

High Growth Revenue: EWRK's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EWRK's Return on Equity is forecast to be very high in 3 years time (56.5%).


Next Steps

Past Performance

How has Ework Group performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EWRK has high quality earnings.

Growing Profit Margin: EWRK's current net profit margins (0.6%) are lower than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: EWRK's earnings have grown by 10.4% per year over the past 5 years.

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

Earnings vs Industry: EWRK had negative earnings growth (-4.6%) over the past year, making it difficult to compare to the IT industry average (4.1%).


Return on Equity

High ROE: Whilst EWRK's Return on Equity (47.62%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Ework Group's financial position?


Financial Position Analysis

Short Term Liabilities: EWRK's short term assets (SEK3.7B) exceed its short term liabilities (SEK3.7B).

Long Term Liabilities: EWRK's short term assets (SEK3.7B) exceed its long term liabilities (SEK27.7M).


Debt to Equity History and Analysis

Debt Level: EWRK's debt to equity ratio (347.9%) is considered high.

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

Debt Coverage: EWRK's debt is not well covered by operating cash flow (4%).

Interest Coverage: EWRK's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: EWRK's debt is covered by short term assets (assets are 6.8x debt).


Next Steps

Dividend

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

7.87%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: EWRK's dividend (7.87%) is higher than the bottom 25% of dividend payers in the Swedish market (1.99%).

High Dividend: EWRK's dividend (7.87%) is in the top 25% of dividend payers in the Swedish market (6.49%)


Stability and Growth of Payments

Stable Dividend: EWRK's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103%), EWRK's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EWRK's dividends in 3 years are forecast to be covered by earnings (83.7% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Zoran Covic (46yo)

6.08s

Tenure

kr3,564,000

Compensation

Mr. Zoran Covic has been the Chief Executive Officer of eWork Group AB (publ) March 17, 2014 and served as its President. Mr. Covic served as a Manager of Malmö and Copenhagen Operations at eWork Scandinav ...


CEO Compensation Analysis

Compensation vs Market: Zoran's total compensation ($USD350.14K) is above average for companies of similar size in the Swedish market ($USD210.15K).

Compensation vs Earnings: Zoran's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Zoran Covic
Chief Executive Officer6.08yrskr3.56m0.58% SEK5.7m
Magnus Eriksson
Deputy CEO0.50yrkr4.41m0.47% SEK4.7m
Magnus Berglind
Founder & Director20.25yrsno data0.058% SEK572.0k
Ola Maalsnes
Chief Financial Officer1.25yrsno datano data
Pernilla Nilsson
Sales & Marketing Director7.42yrsno data0.096% SEK946.7k
Tim Kolga
People Operation Director4.25yrsno datano data
Jesper Hendriksen
Chief Digital Officerno datano datano data
Mikael Subotowicz
Managing Director of Polandno datano datano data
Brian Möller
Managing Director of Denmarkno datano datano data
Rune Rasen
Managing Director of Ework Norge AS0.58yrno datano data

4.3yrs

Average Tenure

46yo

Average Age

Experienced Management: EWRK's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Magnus Berglind
Founder & Director20.25yrsno data0.058% SEK572.0k
Staffan Salén
Chairman9.58yrskr309.00kno data
Dan Berlin
Independent Director16.25yrsno data0.78% SEK7.7m
Anna Storåkers
Independent Director8.25yrsno data0.023% SEK228.8k
Johan Qviberg
Independent Director6.25yrsno data0.61% SEK6.0m
Mernosh Saatchi
Independent Director4.25yrsno data0.012% SEK114.4k
Erik Åfors
Independent Director6.25yrsno datano data

8.3yrs

Average Tenure

49yo

Average Age

Experienced Board: EWRK's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EWRK 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

Ework Group AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ework Group AB (publ)
  • Ticker: EWRK
  • Exchange: OM
  • Founded: 2000
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: kr986.109m
  • Shares outstanding: 17.24m
  • Website: https://www.eworkgroup.com

Number of Employees


Location

  • Ework Group AB (publ)
  • Mäster Samuelsgatan 60
  • Stockholm
  • 111 21
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EWRKOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKMay 2008
0MCBLSE (London Stock Exchange)YesCommon SharesGBSEKMay 2008
EWRKSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKMay 2008

Biography

Ework Group AB (publ) operates as a consultant supplier with focus on IT, telecom, technology, and business development in Sweden, Finland, Denmark, and Norway. The company was formerly known as eWork Scandinavia AB (publ) and changed its name to Ework Group AB (publ) in May 2016. Ework Group AB (publ) was founded in 2000 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 Analysis2020/04/04 03:03
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.