OM:PACT

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Proact IT Group

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.


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

1.1%

PACT

4.6%

SE IT

2.5%

SE Market


1 Year Return

-39.7%

PACT

-15.1%

SE IT

3.8%

SE Market

Return vs Industry: PACT underperformed the Swedish IT industry which returned -15.1% over the past year.

Return vs Market: PACT underperformed the Swedish Market which returned 3.8% over the past year.


Shareholder returns

PACTIndustryMarket
7 Day1.1%4.6%2.5%
30 Day15.3%1.1%6.7%
90 Day4.8%-15.4%-9.7%
1 Year-39.7%-39.7%-14.7%-15.1%5.2%3.8%
3 Year-22.5%-25.5%7.1%2.4%9.7%-5.3%
5 Year39.4%28.5%81.2%65.2%24.2%0.06%

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

Valuation

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

41.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PACT (SEK147.8) is trading below our estimate of fair value (SEK253.85)

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 (16x) compared to the IT industry average (16.8x).

PE vs Market: PACT is good value based on its PE Ratio (16x) compared to the Swedish market (18x).


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 (2.4x) compared to the SE IT industry average (2.5x).


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 (6% 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?

2.68%

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)

1.67yrs

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 ($USD588.16K) is above average for companies of similar size in the Swedish market ($USD221.34K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jonas Hasselberg
CEO & President1.67yrskr5.67m0.060% SEK812.9k
Jonas Persson
Chief Financial Officerno datano data0.099% SEK1.3m
Omar Lien
COO & Dy MDno datano datano data
Per Sedihn
CTO and Acting VP of Portfolio & Technologyno datano datano data
Danny Duggal
Vice President of Commercial & Communications1.33yrsno datano data
Sara Ossborn
Head of People1.33yrsno datano data
Jon Duffy
Head of Service Delivery - United Kingdomno datano datano data
Ellen Grasbakken
Managing Director of Proact IT Norge AS1.33yrsno datano data
Richardas Pivoriunas
Managing Director of Proact Lietuva UABno datano datano data
Dimitri Scharafoutdinov
Managing Director of Proact IT Latvia SIAno datano datano 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

NamePositionTenureCompensationOwnership
Thomas Thuresson
Independent Board Member2yrskr325.00kno data
Martin Gren
Board Member3yrskr270.00k0.11% SEK1.5m
Eva Elmstedt
Independent Chairman2yrskr585.00k0.082% SEK1.1m
Annikki Schaeferdiek
Independent Board Member3yrskr275.00kno data
Erik Malmberg
Director0.33yrno datano 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: kr1.353b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PACTOM (OMX Nordic Exchange Stockholm)YesRegistered SharesSESEKMay 1998
0GT3LSE (London Stock Exchange)YesRegistered SharesGBSEKMay 1998
PACTSBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBSEKMay 1998
PIUDB (Deutsche Boerse AG)YesRegistered SharesDEEURMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 06:55
End of Day Share Price2020/05/26 00:00
Earnings2020/03/31
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.