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PREV

Prevas OM:PREV B Stock Report

Last Price

kr109.40

Market Cap

kr1.4b

7D

-0.5%

1Y

22.2%

Updated

15 Aug, 2022

Data

Company Financials
PREV B fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends4/6

PREV B Stock Overview

Prevas AB provides technical consultancy services in Sweden.

Prevas Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Prevas
Historical stock prices
Current Share Pricekr109.40
52 Week Highkr133.60
52 Week Lowkr85.40
Beta1.58
1 Month Change-6.01%
3 Month Change-4.04%
1 Year Change22.24%
3 Year Change329.02%
5 Year Change511.17%
Change since IPO49.86%

Recent News & Updates

Jun 12
We Think Prevas (STO:PREV B) Can Manage Its Debt With Ease

We Think Prevas (STO:PREV B) Can Manage Its Debt With Ease

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

PREV BSE ITSE Market
7D-0.5%1.7%2.3%
1Y22.2%-18.9%-21.8%

Return vs Industry: PREV B exceeded the Swedish IT industry which returned -18.9% over the past year.

Return vs Market: PREV B exceeded the Swedish Market which returned -21.8% over the past year.

Price Volatility

Is PREV B's price volatile compared to industry and market?
PREV B volatility
PREV B Average Weekly Movement7.0%
IT Industry Average Movement6.9%
Market Average Movement7.2%
10% most volatile stocks in SE Market12.6%
10% least volatile stocks in SE Market4.5%

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

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

About the Company

FoundedEmployeesCEOWebsite
1985843Johan Stridhttps://www.prevas.com

Prevas AB provides technical consultancy services in Sweden. The company provides embedded systems and intelligent sensors, industrial Linux, Internet of Things, medical technology products, products and platform based solutions, product life cycle management solutions, and systems for aftermarket and field service, as well as test system design services. It also offers automation and robot, enterprise asset management, enterprise manufacturing intelligence, production improvement, and industrial digitalization solutions, as well as manufacturing execution systems and industrial IT products.

Prevas Fundamentals Summary

How do Prevas's earnings and revenue compare to its market cap?
PREV B fundamental statistics
Market Capkr1.39b
Earnings (TTM)kr122.40m
Revenue (TTM)kr1.22b

11.4x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PREV B income statement (TTM)
Revenuekr1.22b
Cost of Revenuekr726.35m
Gross Profitkr497.29m
Other Expenseskr374.89m
Earningskr122.40m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)9.61
Gross Margin40.64%
Net Profit Margin10.00%
Debt/Equity Ratio19.5%

How did PREV B perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

36%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 PREV B?

Other financial metrics that can be useful for relative valuation.

PREV B 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/Revenue1.2x
Enterprise Value/EBITDA7.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does PREV B's PE Ratio compare to its peers?

PREV B PE Ratio vs Peers
The above table shows the PE ratio for PREV B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.7x
SOF B Softronic
15.9xn/akr1.3b
B3 B3 Consulting Group
14.7x-36.5%kr1.2b
ENEA Enea
16.1x0.8%kr2.3b
PACT Proact IT Group
16x10.3%kr2.4b
PREV B Prevas
11.4xn/akr1.4b

Price-To-Earnings vs Peers: PREV B is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (15.7x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: PREV B is good value based on its Price-To-Earnings Ratio (11.4x) compared to the Swedish IT industry average (16x)


Price to Earnings Ratio vs Fair Ratio

What is PREV B'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.

PREV B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PREV B's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

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

Below Fair Value: PREV B (SEK109.4) is trading below our estimate of fair value (SEK318.9)

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


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 Prevas forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.2%

Forecasted Software industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Prevas has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether Prevas is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Prevas competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Prevas performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


57.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PREV B has high quality earnings.

Growing Profit Margin: PREV B's current net profit margins (10%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: PREV B has become profitable over the past 5 years, growing earnings by 57.7% per year.

Accelerating Growth: PREV B's earnings growth over the past year (114.1%) exceeds its 5-year average (57.7% per year).

Earnings vs Industry: PREV B earnings growth over the past year (114.1%) exceeded the IT industry 40%.


Return on Equity

High ROE: PREV B's Return on Equity (24.4%) is considered high.


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Financial Health

How is Prevas'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: PREV B's short term assets (SEK437.2M) exceed its short term liabilities (SEK293.3M).

Long Term Liabilities: PREV B's short term assets (SEK437.2M) exceed its long term liabilities (SEK97.5M).


Debt to Equity History and Analysis

Debt Level: PREV B's net debt to equity ratio (5.5%) is considered satisfactory.

Reducing Debt: PREV B's debt to equity ratio has reduced from 32.2% to 19.5% over the past 5 years.

Debt Coverage: PREV B's debt is well covered by operating cash flow (142.5%).

Interest Coverage: PREV B earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.20%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PREV B's dividend (3.2%) is higher than the bottom 25% of dividend payers in the Swedish market (1.43%).

High Dividend: PREV B's dividend (3.2%) is low compared to the top 25% of dividend payers in the Swedish market (5.3%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.4%), PREV B's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.5%), PREV B's dividend payments are well covered by cash flows.


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Management

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

2.4yrs

Average management tenure


CEO

Johan Strid (51 yo)

4.58yrs

Tenure

kr4,566,000

Compensation

Mr. Johan Strid has been Chief Executive Officer and President of Prevas AB since 2018. Mr. Strid has been a Director of Avensia AB (publ) since 2022. He served as an Executive Vice President of Knowit Sol...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Johan's total compensation is reasonable compared to companies of similar size in the Swedish market.

Compensation vs Earnings: Johan's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: PREV B's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: PREV B's board of directors are not considered experienced ( 2.3 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Prevas AB's employee growth, exchange listings and data sources


Key Information

  • Name: Prevas AB
  • Ticker: PREV B
  • Exchange: OM
  • Founded: 1985
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: kr1.393b
  • Shares outstanding: 12.74m
  • Website: https://www.prevas.com

Number of Employees


Location

  • Prevas AB
  • Legeringsgatan 18
  • Västerås
  • Västmanland County
  • 721 30
  • Sweden

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.