Generic Sweden (OM:GENI) - Share price, News & Analysis

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

GENI (SEK47.85) is trading below our estimate of [[fair value]] (SEK58.32)

GENI fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

GENI Stock Overview

Generic Sweden AB, a technology company, provides messaging services for all applications.

Rewards

Trading at 17.9% below our estimate of its fair value

Earnings are forecast to grow 12.68% per year

Earnings have grown 35.1% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (SEK588M)

Generic Sweden Competitors

CAG Group

OM:CAG

kr607.3m

Novotek

OM:NTEK B

kr653.0m

Precio Fishbone

OM:PRCO B

kr430.3m

B3 Consulting Group

OM:B3

kr1.1b

Price History & Performance

Summary of all time highs, changes and price drops for Generic Sweden
Historical stock prices
Current Share Price	kr47.85
52 Week High	kr127.40
52 Week Low	kr41.00
Beta	1.03
1 Month Change	-9.55%
3 Month Change	-6.73%
1 Year Change	-34.45%
3 Year Change	398.44%
5 Year Change	847.53%
Change since IPO	78.55%

Recent News & Updates

Apr 28

A Look At The Intrinsic Value Of Generic Sweden AB (STO:GENI)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Generic Sweden AB...

Apr 08

Is It Time To Consider Buying Generic Sweden AB (STO:GENI)?

Generic Sweden AB ( STO:GENI ), is not the largest company out there, but it received a lot of attention from a...

Shareholder Returns

	GENI	SE IT	SE Market
7D	-4.1%	-2.4%	-2.3%
1Y	-34.5%	-19.3%	-23.1%

Return vs Industry: GENI underperformed the Swedish IT industry which returned -19.3% over the past year.

Return vs Market: GENI underperformed the Swedish Market which returned -23.1% over the past year.

Price Volatility

Is GENI's price volatile compared to industry and market?
GENI volatility
GENI Average Weekly Movement	6.5%
IT Industry Average Movement	7.1%
Market Average Movement	7.3%
10% most volatile stocks in SE Market	12.9%
10% least volatile stocks in SE Market	4.6%

Stable Share Price: GENI is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GENI's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	20	Jonas Jegerborn	https://www.generic.se

Generic Sweden AB, a technology company, provides messaging services for all applications. It also offers a platform for digital communication services. The company was incorporated in 1993 and is headquareted in Stockholm, Sweden.

Generic Sweden Fundamentals Summary

How do Generic Sweden's earnings and revenue compare to its market cap?
GENI fundamental statistics
Market Cap	kr588.17m
Earnings (TTM)	kr18.58m
Revenue (TTM)	kr119.81m

31.7x

P/E Ratio

4.9x

P/S Ratio

Is GENI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GENI income statement (TTM)
Revenue	kr119.81m
Cost of Revenue	kr87.01m
Gross Profit	kr32.80m
Other Expenses	kr14.23m
Earnings	kr18.58m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.51
Gross Margin	27.38%
Net Profit Margin	15.50%
Debt/Equity Ratio	0.0%

How did GENI perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

66%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is GENI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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 GENI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GENI. This is calculated by dividing GENI's market cap by their current preferred multiple.
What is GENI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr588.17m

GENI 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	4.6x
Enterprise Value/EBITDA	22.4x
PEG Ratio	2.5x

Price to Earnings Ratio vs Peers

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

GENI PE Ratio vs Peers

The above table shows the PE ratio for GENI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.1x
CAG CAG Group	17.2x	11.9%	kr607.3m
NTEK B Novotek	16.5x	n/a	kr653.0m
PRCO B Precio Fishbone	25.9x	n/a	kr430.3m
B3 B3 Consulting Group	12.9x	-36.5%	kr1.1b
GENI Generic Sweden	31.7x	12.7%	kr588.2m

Price-To-Earnings vs Peers: GENI is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the peer average (18.1x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: GENI is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the Swedish IT industry average (15.7x)

Price to Earnings Ratio vs Fair Ratio

What is GENI'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.

GENI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	31.7x
Fair PE Ratio	27.2x

Price-To-Earnings vs Fair Ratio: GENI is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the estimated Fair Price-To-Earnings Ratio (27.2x).

Share Price vs Fair Value

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

Below Fair Value: GENI (SEK47.85) is trading below our estimate of fair value (SEK58.32)

Significantly Below Fair Value: GENI is trading below fair value, but not by a significant amount.

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 Generic Sweden forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

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

12.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GENI's forecast earnings growth (12.7% per year) is above the savings rate (0.4%).

Earnings vs Market: GENI's earnings (12.7% per year) are forecast to grow slower than the Swedish market (16.4% per year).

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

Revenue vs Market: GENI's revenue (12.4% per year) is forecast to grow faster than the Swedish market (10.9% per year).

High Growth Revenue: GENI's revenue (12.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GENI's Return on Equity is forecast to be very high in 3 years time (54.4%).

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Past Performance

How has Generic Sweden performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

35.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GENI has high quality earnings.

Growing Profit Margin: GENI's current net profit margins (15.5%) are higher than last year (14.7%).

Past Earnings Growth Analysis

Earnings Trend: GENI's earnings have grown significantly by 35.1% per year over the past 5 years.

Accelerating Growth: GENI's earnings growth over the past year (40%) exceeds its 5-year average (35.1% per year).

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

Return on Equity

High ROE: GENI's Return on Equity (52.6%) is considered outstanding.

Discover strong past performing companies

Financial Health

How is Generic Sweden's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: GENI's short term assets (SEK56.4M) exceed its short term liabilities (SEK18.8M).

Long Term Liabilities: GENI's short term assets (SEK56.4M) exceed its long term liabilities (SEK6.2M).

Debt to Equity History and Analysis

Debt Level: GENI is debt free.

Reducing Debt: GENI has not had any debt for past 5 years.

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

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

Balance Sheet

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Dividend

What is Generic Sweden 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

2.09%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GENI's dividend (2.09%) is higher than the bottom 25% of dividend payers in the Swedish market (1.47%).

High Dividend: GENI's dividend (2.09%) is low compared to the top 25% of dividend payers in the Swedish market (5.37%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GENI has been paying a dividend for less than 10 years.

Growing Dividend: GENI's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (66.4%), GENI's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (69.9%), GENI's dividend payments are covered by cash flows.

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Management

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

3.6yrs

Average management tenure

CEO

Jonas Jegerborn (50 yo)

no data

Tenure

kr3,035,000

Compensation

Mr. Jonas Jegerborn serves as the Chief Executive Officer and President at Generic Sweden AB.

CEO Compensation Analysis

Compensation vs Market: Jonas's total compensation ($USD296.60K) is above average for companies of similar size in the Swedish market ($USD227.58K).

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

Leadership Team

Experienced Management: GENI's management team is considered experienced (3.6 years average tenure).

Board Members

Experienced Board: GENI'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: 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31