Executive Summary
Proact IT Group AB (publ), together with its subsidiaries, operates as an independent integrator in the fields of data storage and cloud solutions in Europe and the United States.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with flawless balance sheet.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.6%
PACT
7.7%
SE IT
4.1%
SE Market
1 Year Return
-36.5%
PACT
-8.5%
SE IT
8.9%
SE Market
Return vs Industry: PACT underperformed the Swedish IT industry which returned -8.4% over the past year.
Return vs Market: PACT underperformed the Swedish Market which returned 9.1% over the past year.
Shareholder returns
| PACT | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.6% | 7.7% | 4.1% |
| 30 Day | 21.1% | 6.0% | 5.8% |
| 90 Day | 10.8% | -5.8% | -2.2% |
| 1 Year | -36.5%-36.5% | -8.0%-8.5% | 10.4%8.9% |
| 3 Year | -23.3%-26.3% | 11.4%6.5% | 11.5%-3.4% |
| 5 Year | 44.0%32.8% | 90.5%73.9% | 30.8%5.3% |
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
6 days ago | Simply Wall St
Investors Who Bought Proact IT Group (STO:PACT) Shares A Year Ago Are Now Down 41%2 weeks ago | Simply Wall St
We Think Proact IT Group's (STO:PACT) Statutory Profit Might Understate Its Earnings PotentialValuation
Is Proact IT Group undervalued compared to its fair value and its price relative to the market?
40.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PACT (SEK151.4) is trading below our estimate of fair value (SEK255.28)
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 (16.3x) compared to the IT industry average (17.4x).
PE vs Market: PACT is good value based on its PE Ratio (16.3x) compared to the Swedish market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: PACT is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: PACT is good value based on its PB Ratio (2.5x) compared to the SE IT industry average (2.6x).
Next Steps
Future Growth
How is Proact IT Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
20.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PACT's forecast earnings growth (20.8% per year) is above the savings rate (0.5%).
Earnings vs Market: PACT's earnings (20.8% per year) are forecast to grow faster than the Swedish market (16.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PACT's revenue (4.7% per year) is forecast to grow slower than the Swedish market (5.9% per year).
High Growth Revenue: PACT's revenue (4.7% 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 low in 3 years time (18.2%).
Next Steps
Past Performance
How has Proact IT Group performed over the past 5 years?
8.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PACT has high quality earnings.
Growing Profit Margin: PACT's current net profit margins (2.5%) are lower than last year (3.5%).
Past Earnings Growth Analysis
Earnings Trend: PACT's earnings have grown by 8.1% per year over the past 5 years.
Accelerating Growth: PACT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PACT had negative earnings growth (-31%) over the past year, making it difficult to compare to the IT industry average (-3%).
Return on Equity
High ROE: PACT's Return on Equity (15.2%) is considered low.
Next Steps
Financial Health
How is Proact IT Group's financial position?
Financial Position Analysis
Short Term Liabilities: PACT's short term assets (SEK1.4B) exceed its short term liabilities (SEK1.4B).
Long Term Liabilities: PACT's short term assets (SEK1.4B) exceed its long term liabilities (SEK863.8M).
Debt to Equity History and Analysis
Debt Level: PACT's debt to equity ratio (33%) is considered satisfactory.
Reducing Debt: PACT's debt to equity ratio has reduced from 58% to 33% over the past 5 years.
Debt Coverage: PACT's debt is well covered by operating cash flow (164.6%).
Interest Coverage: PACT's interest payments on its debt are well covered by EBIT (13.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Proact IT Group's current dividend yield, its reliability and sustainability?
2.62%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate PACT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate PACT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PACT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PACT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: PACT is not paying a notable dividend for the Swedish market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PACT's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Jonas Hasselberg (52yo)
1.58yrs
Tenure
kr5,667,000
Compensation
Mr. Jonas Hasselberg has been a Director of Edgeware AB (publ) since May 4, 2018. He serves as Chief Executive Officer and President since September 01, 2018 at Proact IT Group AB (publ) and employed in Pr ...
CEO Compensation Analysis
Compensation vs Market: Jonas's total compensation ($USD601.31K) is above average for companies of similar size in the Swedish market ($USD219.44K).
Compensation vs Earnings: Jonas's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & President | 1.58yrs | kr5.67m | 0.060% SEK832.7k | |
| Vice President of Mergers and Acquisitions | no data | no data | 0.0049% SEK68.2k | |
| Chief Financial Officer | no data | no data | 0.099% SEK1.4m | |
| COO & Dy MD | no data | no data | no data | |
| CTO and Acting VP of Portfolio & Technology | no data | no data | no data | |
| Vice President of Commercial & Communications | 1.33yrs | no data | 0.0049% SEK68.2k | |
| Head of People | 1.33yrs | no data | 0.0049% SEK68.2k | |
| Head of Service Delivery - United Kingdom | no data | no data | no data | |
| Managing Director of Proact IT Norge AS | 1.33yrs | no data | no data | |
| Managing Director of Proact Lietuva UAB | no data | no data | no data |
1.3yrs
Average Tenure
52yo
Average Age
Experienced Management: PACT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Board Member | 2yrs | kr325.00k | no data | |
| Board Member | 3yrs | kr270.00k | 0.11% SEK1.5m | |
| Independent Chairman | 2yrs | kr585.00k | 0.092% SEK1.3m | |
| Independent Board Member | 3yrs | kr275.00k | 0.076% SEK1.1m | |
| Director | 0.33yr | no data | no data |
2.0yrs
Average Tenure
57yo
Average Age
Experienced Board: PACT's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.
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: kr1.386b
- Shares outstanding: 9.15m
- Website: https://www.proact.eu
Number of Employees
Location
- Proact IT Group AB (publ)
- Kistagången 2
- Box 1205
- Kista
- 164 28
- Sweden
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PACT | OM (OMX Nordic Exchange Stockholm) | Yes | Registered Shares | SE | SEK | May 1998 |
| 0GT3 | LSE (London Stock Exchange) | Yes | Registered Shares | GB | SEK | May 1998 |
| PACTS | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Registered Shares | GB | SEK | May 1998 |
| PIU | DB (Deutsche Boerse AG) | Yes | Registered Shares | DE | EUR | May 1998 |
Biography
Proact IT Group AB (publ), together with its subsidiaries, operates as an independent integrator in the fields of data storage and cloud solutions in Europe and the United States. The company operates through Nordics, UK, East, West, and Proact Finance segments. It offers managed cloud services comprising managed security and network, database, public cloud, cloud cost optimization, and Microsoft services; financial solutions; and support services. The company also provides professional services, such as strategic consulting, project management, design, migration, transition, and assessment services; and infrastructure services, including virtualization, converged/hyper-converged infrastructure, server, networking, storage, backup, service automation, disaster recovery, workspace, and security services. Proact IT Group AB (publ) was founded in 1994 and is headquartered in Kista, Sweden.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/31 20:47 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.