OM:FPIP

Stock Analysis Report

Formpipe Software

Executive Summary

Formpipe Software AB (publ), a software company, develops and provides enterprise content management (ECM) software and solutions in Nordic region, the United Kingdom, rest of Europe, North America, and internationally.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has Formpipe Software's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FPIP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.0%

FPIP

7.4%

SE Software

4.0%

SE Market


1 Year Return

-21.6%

FPIP

73.8%

SE Software

-6.4%

SE Market

Return vs Industry: FPIP underperformed the Swedish Software industry which returned 75.8% over the past year.

Return vs Market: FPIP underperformed the Swedish Market which returned -9.8% over the past year.


Shareholder returns

FPIPIndustryMarket
7 Day6.0%7.4%4.0%
30 Day-3.5%-3.5%-8.3%
90 Day-15.3%8.7%-17.8%
1 Year-19.5%-21.6%75.4%73.8%-4.4%-6.4%
3 Year53.2%41.2%131.9%123.0%6.8%-8.3%
5 Year167.2%143.4%148.4%124.4%13.7%-9.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Formpipe Software undervalued compared to its fair value and its price relative to the market?

23.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FPIP (SEK18.5) is trading below our estimate of fair value (SEK24.15)

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


Price To Earnings Ratio

PE vs Industry: FPIP is good value based on its PE Ratio (28x) compared to the Software industry average (56.5x).

PE vs Market: FPIP is poor value based on its PE Ratio (28x) compared to the Swedish market (15x).


Price to Earnings Growth Ratio

PEG Ratio: FPIP is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: FPIP is good value based on its PB Ratio (2.5x) compared to the SE Software industry average (4.7x).


Next Steps

Future Growth

How is Formpipe Software forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FPIP's forecast earnings growth (11.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: FPIP's earnings (11.1% per year) are forecast to grow faster than the Swedish market (8.9% per year).

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

Revenue vs Market: FPIP's revenue (4.2% per year) is forecast to grow faster than the Swedish market (4.2% per year).

High Growth Revenue: FPIP's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FPIP's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Formpipe Software performed over the past 5 years?

34.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FPIP has high quality earnings.

Growing Profit Margin: FPIP's current net profit margins (8.9%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: FPIP's earnings have grown significantly by 34.9% per year over the past 5 years.

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

Earnings vs Industry: FPIP had negative earnings growth (-12.2%) over the past year, making it difficult to compare to the Software industry average (5.4%).


Return on Equity

High ROE: FPIP's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Formpipe Software's financial position?


Financial Position Analysis

Short Term Liabilities: FPIP's short term assets (SEK156.0M) do not cover its short term liabilities (SEK230.7M).

Long Term Liabilities: FPIP's short term assets (SEK156.0M) exceed its long term liabilities (SEK43.8M).


Debt to Equity History and Analysis

Debt Level: FPIP is debt free.

Reducing Debt: FPIP has no debt compared to 5 years ago when its debt to equity ratio was 44.9%.

Debt Coverage: FPIP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FPIP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Formpipe Software's current dividend yield, its reliability and sustainability?

3.24%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FPIP's dividend (3.24%) is higher than the bottom 25% of dividend payers in the Swedish market (2.07%).

High Dividend: FPIP's dividend (3.24%) is low compared to the top 25% of dividend payers in the Swedish market (6.02%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.8%), FPIP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FPIP's dividends in 3 years are forecast to be covered by earnings (76.8% payout ratio).


Next Steps

Management

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

13.3yrs

Average management tenure


CEO

Christian Sundin (48yo)

13.25s

Tenure

kr3,589,000

Compensation

Mr. Christian Sundin has been the Chief Executive Officer at FormPipe Software AB since 2007 and had been its Country Manager until 2019. Mr. Sundin serves as Chief Executive Officer and President at Formp ...


CEO Compensation Analysis

Compensation vs Market: Christian's total compensation ($USD358.00K) is above average for companies of similar size in the Swedish market ($USD207.01K).

Compensation vs Earnings: Christian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christian Sundin
Chief Executive Officer13.25yrskr3.59m1.89% SEK17.5m
Mats Persson
Chief Technology Officer1.25yrsno data0.010% SEK94.4k
Lina Elo
Director of Human Resourcesno datano data0.0049% SEK45.3k
Joakim Alfredson
Chief Financial Officer13.25yrsno data1.48% SEK13.7m
Anders Eriksen
Denmark Head of BA Customer Communication Managementno datano datano data
Gustav Kinnander
Group Financial Controller of Swedenno datano datano data

13.3yrs

Average Tenure

45yo

Average Age

Experienced Management: FPIP's management team is seasoned and experienced (13.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bosse Nordlander
Chairman7.25yrskr350.00k0.60% SEK5.6m
Martin Henricson
Independent Director4.25yrskr175.00k0.094% SEK872.5k
Annikki Schaeferdiek
Independent Director3yrskr175.00k0.011% SEK104.7k
Peter Lindström
Independent Director4.25yrskr175.00k0.075% SEK698.0k
Åsa Ericson
Independent Director3yrskr175.00k0.014% SEK130.8k
Erik Syrén
Director1yrno datano data

3.6yrs

Average Tenure

52yo

Average Age

Experienced Board: FPIP's board of directors are considered experienced (3.6 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Formpipe Software AB (publ)
  • Ticker: FPIP
  • Exchange: OM
  • Founded:
  • Industry: Application Software
  • Sector: Software
  • Market Cap: kr927.885m
  • Shares outstanding: 53.17m
  • Website: https://www.formpipe.com

Number of Employees


Location

  • Formpipe Software AB (publ)
  • Box 231 31
  • Stockholm
  • Stockholm County
  • 104 35
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FPIPOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKJan 2005
0M8YLSE (London Stock Exchange)YesCommon SharesGBSEKJan 2005
FPIPSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKJan 2005

Biography

Formpipe Software AB (publ), a software company, develops and provides enterprise content management (ECM) software and solutions in Nordic region, the United Kingdom, rest of Europe, North America, and internationally. Its software enables organizations to capture, process, store, archive, and deliver information. The company offers Acadre, an ECM system for municipalities and similar authorities; Contentworker for document, contract, knowledge, and email management; Lasernet to simplify, streamline, and optimize business communication between companies and stakeholders; and Long-Term Archive, a system for preservation of digital information over time. It also provides OnDemand, a Web based system with no client software to install or maintain; Platina, a Web-based ECM product for the management of information; Platina LS, an electronic quality management system, which manages documents and processes for regulatory quality management; and Quality Control, a software product to manage and monitor data quality from operating systems and network disks. In addition, the company offers TAP, a business system for business process management based on service oriented architecture; TAS, a standard system for case management and economical control; X-docs that provides a platform for managing quality documentation; and W3D3, an ECM product for information management and e-services. The company 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 Analysis2020/04/07 21:22
End of Day Share Price2020/04/07 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.