SINC

SinchOM:SINCH Stock Report

Market Cap

kr131.8b

7D

0.8%

1Y

155.0%

Updated

23 Sep, 2021

Data

Company Financials +
SINCH fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance3/6
Financial Health6/6
Dividends0/6

SINCH Overview

Sinch AB (publ) provides cloud communications services and solutions for enterprises and mobile operators in Sweden, France, the United Kingdom, Germany, Brazil, India, Singapore, other European countries, the United States, and internationally.

Sinch Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sinch
Historical stock prices
Current Share Pricekr187.20
52 Week Highkr70.30
52 Week Lowkr204.80
Beta1.05
1 Month Change3.20%
3 Month Change29.10%
1 Year Change155.04%
3 Year Change1,728.13%
5 Year Change2,536.62%
Change since IPO2,396.00%

Recent News & Updates

Shareholder Returns

SINCHSE SoftwareSE Market
7D0.8%-0.9%-1.9%
1Y155.0%101.7%33.4%

Return vs Industry: SINCH exceeded the Swedish Software industry which returned 101.7% over the past year.

Return vs Market: SINCH exceeded the Swedish Market which returned 33.4% over the past year.

Price Volatility

Is SINCH's price volatile compared to industry and market?
SINCH volatility
SINCH Beta1.05
Industry Beta1.06
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
20081,716Oscar Wernerhttps://www.sinch.com

Sinch AB (publ) provides cloud communications services and solutions for enterprises and mobile operators in Sweden, France, the United Kingdom, Germany, Brazil, India, Singapore, other European countries, the United States, and internationally. It operates through three segments: Messaging, Voice and Video, and Operators. The company offers messaging, voice, and video services into applications and business processes.

Sinch Fundamentals Summary

How do Sinch's earnings and revenue compare to its market cap?
SINCH fundamental statistics
Market Capkr131.85b
Earnings (TTM)kr499.91m
Revenue (TTM)kr11.88b

272.2x

P/E Ratio

11.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SINCH income statement (TTM)
Revenuekr11.88b
Cost of Revenuekr9.71b
Gross Profitkr2.17b
Expenseskr1.67b
Earningskr499.91m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)0.81
Gross Margin18.29%
Net Profit Margin4.21%
Debt/Equity Ratio5.6%

How did SINCH perform over the long term?

See historical performance and comparison

Valuation

Is Sinch undervalued compared to its fair value and its price relative to the market?

272.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SINCH (SEK187.2) is trading above our estimate of fair value (SEK103.18)

Significantly Below Fair Value: SINCH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SINCH is poor value based on its PE Ratio (272.2x) compared to the Swedish Software industry average (85.3x).

PE vs Market: SINCH is poor value based on its PE Ratio (272.2x) compared to the Swedish market (23x).


Price to Earnings Growth Ratio

PEG Ratio: SINCH is poor value based on its PEG Ratio (7.1x)


Price to Book Ratio

PB vs Industry: SINCH is overvalued based on its PB Ratio (7.1x) compared to the SE Software industry average (4.3x).


Future Growth

How is Sinch forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

38.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SINCH's forecast earnings growth (38.1% per year) is above the savings rate (0.3%).

Earnings vs Market: SINCH's earnings (38.1% per year) are forecast to grow faster than the Swedish market (6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SINCH's revenue (22.3% per year) is forecast to grow faster than the Swedish market (4% per year).

High Growth Revenue: SINCH's revenue (22.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SINCH's Return on Equity is forecast to be low in 3 years time (8.2%).


Past Performance

How has Sinch performed over the past 5 years?

39.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SINCH has a large one-off loss of SEK267.0M impacting its June 30 2021 financial results.

Growing Profit Margin: SINCH's current net profit margins (4.2%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: SINCH's earnings have grown significantly by 39.8% per year over the past 5 years.

Accelerating Growth: SINCH's earnings growth over the past year (68.1%) exceeds its 5-year average (39.8% per year).

Earnings vs Industry: SINCH earnings growth over the past year (68.1%) exceeded the Software industry -0.07%.


Return on Equity

High ROE: SINCH's Return on Equity (2.6%) is considered low.


Financial Health

How is Sinch's financial position?


Financial Position Analysis

Short Term Liabilities: SINCH's short term assets (SEK16.0B) exceed its short term liabilities (SEK3.5B).

Long Term Liabilities: SINCH's short term assets (SEK16.0B) exceed its long term liabilities (SEK1.8B).


Debt to Equity History and Analysis

Debt Level: SINCH's debt to equity ratio (5.6%) is considered satisfactory.

Reducing Debt: SINCH's debt to equity ratio has reduced from 58.7% to 5.6% over the past 5 years.

Debt Coverage: SINCH's debt is well covered by operating cash flow (94%).

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


Balance Sheet


Dividend

What is Sinch current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SINCH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SINCH'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 SINCH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SINCH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SINCH'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?

2.4yrs

Average management tenure


CEO

Oscar Werner (47 yo)

3yrs

Tenure

kr5,223,000

Compensation

Mr. Oscar Werner has been Chief Executive Officer at Sinch AB (publ) (formerly known as CLX Communications AB (publ)) since September 1, 2018 and was its President since September 1, 2018 until April 11, 2...


CEO Compensation Analysis

Compensation vs Market: Oscar's total compensation ($USD604.85K) is below average for companies of similar size in the Swedish market ($USD2.41M).

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


Leadership Team

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


Board Members

Experienced Board: SINCH's board of directors are considered experienced (4.7 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 been diluted in the past year, with total shares outstanding growing by 21.2%.


Top Shareholders

Company Information

Sinch AB (publ)'s employee growth, exchange listings and data sources


Key Information

  • Name: Sinch AB (publ)
  • Ticker: SINCH
  • Exchange: OM
  • Founded: 2008
  • Industry: Application Software
  • Sector: Software
  • Market Cap: kr131.849b
  • Shares outstanding: 726.84m
  • Website: https://www.sinch.com

Number of Employees


Location

  • Sinch AB (publ)
  • Lindhagensgatan 74
  • Stockholm
  • Stockholm County
  • 112 18
  • Sweden

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 17:55
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.