Executive Summary
Proact IT Group AB (publ), together with its subsidiaries, provides data and information management services with focus on cloud services and data center solutions. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet, undervalued and pays a dividend.
Share Price & News
How has Proact IT Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PACT is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: PACT's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
3.3%
PACT
0.6%
SE IT
1.3%
SE Market
1 Year Return
26.4%
PACT
60.7%
SE IT
45.8%
SE Market
Return vs Industry: PACT underperformed the Swedish IT industry which returned 60.7% over the past year.
Return vs Market: PACT underperformed the Swedish Market which returned 45.8% over the past year.
Shareholder returns
| PACT | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | 0.6% | 1.3% |
| 30 Day | -6.2% | 7.9% | 7.0% |
| 90 Day | -2.5% | 6.8% | 9.6% |
| 1 Year | 30.2%26.4% | 64.1%60.7% | 51.0%45.8% |
| 3 Year | 48.1%41.4% | 104.4%92.0% | 79.3%61.9% |
| 5 Year | 105.0%87.7% | 216.9%182.9% | 115.2%73.6% |
Long-Term Price Volatility Vs. Market
How volatile is Proact IT Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
What You Need To Know About Proact IT Group AB (publ)'s (STO:PACT) Investor Composition1 month ago | Simply Wall St
Proact IT Group (STO:PACT) Has Gifted Shareholders With A Fantastic 154% Total Return On Their Investment2 months ago | Simply Wall St
Some Investors May Be Worried About Proact IT Group's (STO:PACT) Returns On CapitalValuation
Is Proact IT 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: PACT (SEK80.4) is trading below our estimate of fair value (SEK188.86)
Significantly Below Fair Value: PACT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PACT is good value based on its PE Ratio (17.9x) compared to the Swedish IT industry average (25.5x).
PE vs Market: PACT is good value based on its PE Ratio (17.9x) compared to the Swedish market (23x).
Price to Earnings Growth Ratio
PEG Ratio: PACT is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: PACT is good value based on its PB Ratio (3.5x) compared to the SE IT industry average (3.7x).
Future Growth
How is Proact IT Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
15.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PACT's forecast earnings growth (15.2% per year) is above the savings rate (0.3%).
Earnings vs Market: PACT's earnings (15.2% per year) are forecast to grow faster than the Swedish market (4.3% per year).
High Growth Earnings: PACT's earnings are forecast to grow, but not significantly.
Revenue vs Market: PACT's revenue (4.3% per year) is forecast to grow faster than the Swedish market (2.9% per year).
High Growth Revenue: PACT's revenue (4.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PACT's Return on Equity is forecast to be high in 3 years time (23.2%)
Past Performance
How has Proact IT Group performed over the past 5 years?
3.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PACT has high quality earnings.
Growing Profit Margin: PACT's current net profit margins (3.4%) are higher than last year (2.9%).
Past Earnings Growth Analysis
Earnings Trend: PACT's earnings have grown by 3.7% per year over the past 5 years.
Accelerating Growth: PACT's earnings growth over the past year (19.2%) exceeds its 5-year average (3.7% per year).
Earnings vs Industry: PACT earnings growth over the past year (19.2%) underperformed the IT industry 19.2%.
Return on Equity
High ROE: PACT's Return on Equity (19.6%) is considered low.
Financial Health
How is Proact IT Group's financial position?
Financial Position Analysis
Short Term Liabilities: PACT's short term assets (SEK1.5B) exceed its short term liabilities (SEK1.4B).
Long Term Liabilities: PACT's short term assets (SEK1.5B) exceed its long term liabilities (SEK962.2M).
Debt to Equity History and Analysis
Debt Level: PACT's debt to equity ratio (30.4%) is considered satisfactory.
Reducing Debt: PACT's debt to equity ratio has reduced from 66.9% to 30.4% over the past 5 years.
Debt Coverage: PACT's debt is well covered by operating cash flow (265.5%).
Interest Coverage: PACT's interest payments on its debt are well covered by EBIT (21.2x coverage).
Balance Sheet
Dividend
What is Proact IT Group current dividend yield, its reliability and sustainability?
1.87%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PACT's dividend (1.87%) is higher than the bottom 25% of dividend payers in the Swedish market (0.92%).
High Dividend: PACT's dividend (1.87%) is low compared to the top 25% of dividend payers in the Swedish market (3.4%).
Stability and Growth of Payments
Stable Dividend: PACT's dividend payments have been volatile in the past 10 years.
Growing Dividend: PACT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33.5%), PACT's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PACT's dividends in 3 years are forecast to be well covered by earnings (30.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Jonas Hasselberg (54 yo)
2.92yrs
Tenure
kr5,825,000
Compensation
Mr. Jonas Hasselberg has been a Director of Edgeware AB (publ) since May 4, 2018. He has been Chief Executive Officer and President of Proact IT Group AB (publ) since September 01, 2018 and serves as its A...
CEO Compensation Analysis
Compensation vs Market: Jonas's total compensation ($USD676.67K) is above average for companies of similar size in the Swedish market ($USD411.58K).
Compensation vs Earnings: Jonas's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: PACT's management team is considered experienced (2.6 years average tenure).
Board Members
Experienced Board: PACT's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PACT 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
Proact IT Group AB (publ)'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Proact IT Group AB (publ)
- Ticker: PACT
- Exchange: OM
- Founded: 1994
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: kr2.207b
- Shares outstanding: 27.45m
- Website: https://www.proact.eu
Number of Employees
Location
- Proact IT Group AB (publ)
- KistagAngen 2
- Box 1205
- Kista
- Stockholm County
- 164 28
- Sweden
Listings
Biography
Proact IT Group AB (publ), together with its subsidiaries, provides data and information management services with focus on cloud services and data center solutions. It offers data strategy advisory service...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/08/04 21:52 |
| End of Day Share Price | 2021/08/04 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.