OM:SOF B

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Executive Summary

Softronic AB provides IT and management services in primarily in Sweden. More Details

Rewards

Trading at 55.2% below our estimate of its fair value

Earnings grew by 23.2% over the past year

Risk Analysis

No risks detected for SOF B from our risk checks.


Snowflake Analysis

Flawless balance sheet with outstanding track record.

Share Price & News

How has Softronic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOF B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.7%

SOF B

2.9%

SE IT

-1.1%

SE Market


1 Year Return

22.9%

SOF B

27.8%

SE IT

13.4%

SE Market

Return vs Industry: SOF B underperformed the Swedish IT industry which returned 27.7% over the past year.

Return vs Market: SOF B exceeded the Swedish Market which returned 13.3% over the past year.


Shareholder returns

SOF BIndustryMarket
7 Day4.7%2.9%-1.1%
30 Day6.7%5.8%2.2%
90 Day19.2%21.8%6.3%
1 Year22.9%22.9%29.2%27.8%15.4%13.4%
3 Year72.7%56.3%49.9%43.5%30.9%16.9%
5 Year251.9%183.7%157.5%133.6%59.3%28.3%

Price Volatility Vs. Market

How volatile is Softronic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Softronic 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: SOF B (SEK20) is trading below our estimate of fair value (SEK44.63)

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


Price To Earnings Ratio

PE vs Industry: SOF B is good value based on its PE Ratio (16.1x) compared to the SE IT industry average (23.2x).

PE vs Market: SOF B is good value based on its PE Ratio (16.1x) compared to the Swedish market (22.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SOF B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SOF B is good value based on its PB Ratio (3.3x) compared to the SE IT industry average (3.7x).


Next Steps

Future Growth

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

19.4%

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 Softronic 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.


Next Steps

Past Performance

How has Softronic performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOF B has high quality earnings.

Growing Profit Margin: SOF B's current net profit margins (9.1%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: SOF B's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: SOF B's earnings growth over the past year (23.2%) exceeds its 5-year average (16.2% per year).

Earnings vs Industry: SOF B earnings growth over the past year (23.2%) exceeded the IT industry 2.6%.


Return on Equity

High ROE: SOF B's Return on Equity (20.3%) is considered high.


Next Steps

  • Explore strong past performing companies in the Software industry.

Financial Health

How is Softronic's financial position?


Financial Position Analysis

Short Term Liabilities: SOF B's short term assets (SEK332.3M) exceed its short term liabilities (SEK141.9M).

Long Term Liabilities: SOF B's short term assets (SEK332.3M) exceed its long term liabilities (SEK13.5M).


Debt to Equity History and Analysis

Debt Level: SOF B is debt free.

Reducing Debt: SOF B has not had any debt for past 5 years.

Debt Coverage: SOF B has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SOF B has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: SOF B is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

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

16.8yrs

Average management tenure


CEO

Per Adolfsson (60 yo)

1.5yrs

Tenure

kr4,310,000

Compensation

Mr. Per Adolfsson has been Chief Executive Officer at Softronic AB since April 2019.


CEO Compensation Analysis

Compensation vs Market: Per's total compensation ($USD491.35K) is above average for companies of similar size in the Swedish market ($USD232.57K).

Compensation vs Earnings: Insufficient data to compare Per's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Per Adolfsson
Chief Executive Officer1.5yrskr4.31mno data
Anders Bergman
Chief Financial Officer16.75yrsno datano data
Mathias Kjellberg
Chief Operating Officer21.75yrsno datano data
Claes Brickell
Head of Salesno datano datano data

16.8yrs

Average Tenure

55yo

Average Age

Experienced Management: SOF B's management team is seasoned and experienced (16.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Petter Stillström
Chairman of the Board0.42yrkr170.00kno data
Stig Martin
Director36.75yrskr85.00kno data
Susanna Marcus
Independent Director4.75yrsno datano data
Cecilia Nilsson
Employee Representative Director17.75yrsno datano data
Tomas Hogstrom
Employee Representative Director17.75yrsno datano data
Britten Wennman
Independent Director1.75yrsno datano data
Victoria Bohlin
Independent Director1.75yrsno datano data

4.8yrs

Average Tenure

55yo

Average Age

Experienced Board: SOF B's board of directors are considered experienced (4.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Softronic AB's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Softronic AB
  • Ticker: SOF B
  • Exchange: OM
  • Founded: 1984
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: kr1.053b
  • Shares outstanding: 52.63m
  • Website: https://www.softronic.se

Number of Employees


Location

  • Softronic AB
  • Hammarby kaj 10A
  • Stockholm
  • 120 32
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOF BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKDec 1998
0GU8LSE (London Stock Exchange)YesClass B SharesGBSEKDec 1998
SF7DB (Deutsche Boerse AG)YesClass B SharesDEEURDec 1998
SOFBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKDec 1998

Biography

Softronic AB provides IT and management services in primarily in Sweden. The company offers scanning, application hosting, secure communication, digital sales platform, cyber defense as a service, complian ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 20:59
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
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.