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Softronic

OM:SOF B
Snowflake Description

Flawless balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SOF B
OM
SEK921M
Market Cap
  1. Home
  2. SE
  3. Software
Company description

Softronic AB provides IT and management services in primarily in Sweden. The last earnings update was 55 days ago. More info.


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SOF B Share Price and Events
7 Day Returns
2%
OM:SOF B
0.8%
SE IT
0.8%
SE Market
1 Year Returns
19%
OM:SOF B
23.2%
SE IT
5.2%
SE Market
SOF B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Softronic (SOF B) 2% 7.4% 12.2% 19% 87.2% 143.1%
SE IT 0.8% 2.2% 22.4% 23.2% 85.7% 128.4%
SE Market 0.8% 2.6% 10.9% 5.2% 12.3% 23.5%
1 Year Return vs Industry and Market
  • SOF B underperformed the IT industry which returned 23.2% over the past year.
  • SOF B outperformed the Market in Sweden which returned 5.2% over the past year.
Price Volatility
SOF B
Industry
5yr Volatility vs Market

Value

 Is Softronic undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Softronic to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Softronic.

OM:SOF B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 6.6%
Perpetual Growth Rate 10-Year SE Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OM:SOF B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SE Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.06 (1 + (1- 22%) (0%))
1.04
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.43% + (1.04 * 5.96%)
6.63%

Discounted Cash Flow Calculation for OM:SOF B using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Softronic is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OM:SOF B DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 6.63%)
2019 66.67 Est @ 10.28% 62.52
2020 71.55 Est @ 7.33% 62.93
2021 75.31 Est @ 5.26% 62.12
2022 78.19 Est @ 3.81% 60.47
2023 80.37 Est @ 2.8% 58.30
2024 82.05 Est @ 2.09% 55.82
2025 83.36 Est @ 1.59% 53.18
2026 84.40 Est @ 1.25% 50.49
2027 85.24 Est @ 1% 47.82
2028 85.95 Est @ 0.83% 45.22
Present value of next 10 years cash flows SEK558.87
OM:SOF B DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SEK85.95 × (1 + 0.43%) ÷ (6.63% – 0.43%)
SEK1,392.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK1,392.75 ÷ (1 + 6.63%)10
SEK732.79
OM:SOF B Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK558.87 + SEK732.79
SEK1,291.66
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK1,291.66 / 52.63
SEK24.54
OM:SOF B Discount to Share Price
Calculation Result
Value per share (SEK) From above. SEK24.54
Current discount Discount to share price of SEK17.50
= -1 x (SEK17.50 - SEK24.54) / SEK24.54
28.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Softronic is available for.
Intrinsic value
29%
Share price is SEK17.5 vs Future cash flow value of SEK24.54
Current Discount Checks
For Softronic to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Softronic's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Softronic's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Softronic's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Softronic's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OM:SOF B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in SEK SEK0.99
OM:SOF B Share Price ** OM (2019-04-17) in SEK SEK17.5
Sweden IT Industry PE Ratio Median Figure of 18 Publicly-Listed IT Companies 18.91x
Sweden Market PE Ratio Median Figure of 323 Publicly-Listed Companies 17.2x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Softronic.

OM:SOF B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:SOF B Share Price ÷ EPS (both in SEK)

= 17.5 ÷ 0.99

17.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Softronic is good value based on earnings compared to the SE IT industry average.
  • Softronic is overvalued based on earnings compared to the Sweden market.
Price based on expected Growth
Does Softronic's expected growth come at a high price?
Raw Data
OM:SOF B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
5.9%per year
Sweden IT Industry PEG Ratio Median Figure of 10 Publicly-Listed IT Companies 1.88x
Sweden Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 1.33x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Softronic, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Softronic's assets?
Raw Data
OM:SOF B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in SEK SEK5.15
OM:SOF B Share Price * OM (2019-04-17) in SEK SEK17.5
Sweden IT Industry PB Ratio Median Figure of 23 Publicly-Listed IT Companies 3.86x
Sweden Market PB Ratio Median Figure of 566 Publicly-Listed Companies 2.54x
OM:SOF B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:SOF B Share Price ÷ Book Value per Share (both in SEK)

= 17.5 ÷ 5.15

3.4x

* Primary Listing of Softronic.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Softronic is good value based on assets compared to the SE IT industry average.
X
Value checks
We assess Softronic's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Softronic has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Softronic, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Softronic expected to grow at an attractive rate?
  • Softronic's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
  • Softronic's earnings growth is positive but not above the Sweden market average.
  • Unable to compare Softronic's revenue growth to the Sweden market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
OM:SOF B Future Growth Rates Data Sources
Data Point Source Value (per year)
OM:SOF B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 5.9%
Sweden IT Industry Earnings Growth Rate Market Cap Weighted Average 5.3%
Sweden IT Industry Revenue Growth Rate Market Cap Weighted Average 6.3%
Sweden Market Earnings Growth Rate Market Cap Weighted Average 9.2%
Sweden Market Revenue Growth Rate Market Cap Weighted Average 4.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OM:SOF B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OM:SOF B Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2018-12-31 737 65 52
2018-09-30 731 69 56
2018-06-30 716 67 59
2018-03-31 683 70 56
2017-12-31 657 57 52
2017-09-30 634 66 45
2017-06-30 620 72 41
2017-03-31 624 72 39
2016-12-31 615 43 33
2016-09-30 616 54 29
2016-06-30 619 45 29
2016-03-31 610 42 26

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Softronic's earnings are expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Softronic is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OM:SOF B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Softronic Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:SOF B Past Financials Data
Date (Data in SEK Millions) EPS *
2018-12-31 0.99
2018-09-30 1.07
2018-06-30 1.13
2018-03-31 1.07
2017-12-31 0.98
2017-09-30 0.86
2017-06-30 0.78
2017-03-31 0.74
2016-12-31 0.63
2016-09-30 0.55
2016-06-30 0.55
2016-03-31 0.50

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Softronic will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Softronic's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Softronic has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Softronic performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Softronic's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Softronic has delivered over 20% year on year earnings growth in the past 5 years.
  • Softronic's 1-year earnings growth is less than its 5-year average (1% vs 20.3%)
  • Softronic's earnings growth has not exceeded the SE IT industry average in the past year (1% vs 11.2%).
Earnings and Revenue History
Softronic's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Softronic Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:SOF B Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 737.20 52.30 51.80
2018-09-30 730.60 56.47 51.82
2018-06-30 715.90 59.27 52.22
2018-03-31 683.50 56.27 53.22
2017-12-31 657.00 51.77 54.52
2017-09-30 633.99 45.16 55.13
2017-06-30 619.89 40.96 54.23
2017-03-31 623.59 39.16 54.53
2016-12-31 614.69 32.96 53.53
2016-09-30 615.89 29.13 53.46
2016-06-30 618.89 28.83 52.76
2016-03-31 609.59 26.43 51.06
2015-12-31 601.89 29.83 49.86
2015-09-30 579.47 26.83 49.79
2015-06-30 560.34 23.98 49.88
2015-03-31 547.22 21.66 49.90
2014-12-31 539.38 18.91 50.29
2014-09-30 545.26 25.14 49.50
2014-06-30 544.50 27.29 49.07
2014-03-31 553.04 29.51 49.00
2013-12-31 551.92 27.46 47.99
2013-09-30 550.72 24.02 48.02
2013-06-30 547.63 22.08 47.67
2013-03-31 520.97 16.51 47.58
2012-12-31 516.73 22.70 47.14
2012-09-30 511.63 23.58 47.70
2012-06-30 510.67 25.25 47.42

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Softronic has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Softronic used its assets more efficiently than the SE IT industry average last year based on Return on Assets.
  • Softronic has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Softronic's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Softronic has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Softronic's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Softronic's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Softronic is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Softronic's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Softronic's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Softronic has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Softronic Company Filings, last reported 3 months ago.

OM:SOF B Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 270.90 0.00 113.00
2018-09-30 257.20 0.00 96.50
2018-06-30 248.70 0.00 85.00
2018-03-31 272.10 0.00 118.00
2017-12-31 258.10 0.00 87.69
2017-09-30 240.20 0.00 69.50
2017-06-30 228.90 0.00 60.70
2017-03-31 242.10 0.00 77.00
2016-12-31 232.64 0.00 62.27
2016-09-30 221.30 0.00 41.10
2016-06-30 214.20 0.00 26.60
2016-03-31 229.30 0.00 42.30
2015-12-31 226.03 0.00 57.65
2015-09-30 218.56 0.00 18.48
2015-06-30 211.79 0.00 12.75
2015-03-31 226.64 0.00 38.10
2014-12-31 219.92 0.00 47.74
2014-09-30 215.49 0.00 18.85
2014-06-30 211.52 0.00 15.96
2014-03-31 228.62 0.00 52.96
2013-12-31 224.66 0.00 37.22
2013-09-30 214.01 0.00 7.65
2013-06-30 207.91 0.00 5.28
2013-03-31 222.75 0.00 32.07
2012-12-31 220.79 0.00 34.73
2012-09-30 213.56 0.00 14.58
2012-06-30 209.43 0.00 17.92
  • Softronic has no debt.
  • Softronic has not taken on any debt in the past 5 years.
  • Softronic has no debt, it does not need to be covered by operating cash flow.
  • Softronic has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Softronic's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Softronic has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.29%
Current annual income from Softronic dividends.
If you bought SEK2,000 of Softronic shares you are expected to receive SEK86 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Softronic's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.87%).
  • Softronic's dividend is below the markets top 25% of dividend payers in Sweden (4.34%).
Upcoming dividend payment

Purchase Softronic before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OM:SOF B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Sweden IT Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 2.9%
Sweden Market Average Dividend Yield Market Cap Weighted Average of 245 Stocks 3.5%
Sweden Minimum Threshold Dividend Yield 10th Percentile 1.2%
Sweden Bottom 25% Dividend Yield 25th Percentile 1.9%
Sweden Top 25% Dividend Yield 75th Percentile 4.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OM:SOF B Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-02-21 0.750 4.618
2018-04-11 0.750 4.213
2018-02-22 0.750 5.016
2017-04-11 0.500 4.387
2017-02-23 0.500 5.754
2016-04-11 0.500 6.210
2016-02-18 0.500 6.010
2015-04-10 0.450 6.427
2015-02-19 0.450 6.618
2014-03-31 0.450 6.518
2014-02-14 0.450 6.382
2013-04-11 0.450 7.130
2013-02-14 0.450 6.326
2012-04-02 0.450 7.369
2012-02-16 0.450 6.102
2011-03-31 0.450 7.013
2011-02-17 0.450 5.410
2010-03-01 0.450 6.175
2010-01-15 0.450 6.360
2009-04-20 0.300 5.064

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Softronic's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Softronic's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Softronic afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Softronic has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Softronic's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Anders Eriksson
AGE 62
TENURE AS CEO 35.3 years
CEO Bio

Mr. Anders Eriksson has been Chief Executive Officer and Director of Softronic AB since 1984. Mr. Eriksson serves as the Chief Executive Officer of Cogent IPC. Mr. Eriksson is the Founder and Owner of Softronic AB and serves as its President. He served as the Chairman of Hifab Group AB and served as its Director since 2006. He serves as a Director at Nordic Ground Support, Softronic and Cogent IPC. He has been an Independent Director of AB Traction since 2011.

CEO Compensation
  • Insufficient data for Anders to compare compensation growth.
  • Insufficient data for Anders to establish whether their remuneration is reasonable compared to companies of similar size in Sweden.
Management Team Tenure

Average tenure and age of the Softronic management team in years:

17.8
Average Tenure
53.5
Average Age
  • The average tenure for the Softronic management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Anders Eriksson

TITLE
CEO & Director
AGE
62
TENURE
35.3 yrs

Anders Bergman

TITLE
Chief Financial Officer
AGE
54
TENURE
15.3 yrs

Mathias Kjellberg

TITLE
Chief Operating Officer
AGE
47
TENURE
20.3 yrs

Leif Sjöberg

TITLE
Marketing Director
AGE
64
TENURE
14.3 yrs

Claes Brickell

TITLE
Head of Sales
AGE
52

Joachim Lundberg

TITLE
Manager of Group Functions
AGE
53
Board of Directors Tenure

Average tenure and age of the Softronic board of directors in years:

9.3
Average Tenure
55
Average Age
  • The tenure for the Softronic board of directors is about average.
Board of Directors

Petter Stillström

TITLE
Chairman of the Board
COMPENSATION
SEK170K
AGE
46

Anders Eriksson

TITLE
CEO & Director
AGE
62
TENURE
35.3 yrs

Cecilia Nilsson

TITLE
Director
AGE
53
TENURE
16.3 yrs

Tomas Högstöm

TITLE
Director
AGE
55
TENURE
9.3 yrs

Stig Martin

TITLE
Director
COMPENSATION
SEK85K
AGE
73
TENURE
35.3 yrs

Anders Nilsson

TITLE
Director
COMPENSATION
SEK85K
AGE
67
TENURE
6.3 yrs

Jeanna Rutherhill

TITLE
Director
TENURE
5.3 yrs

Susanna Marcus

TITLE
Director
AGE
53
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
07. Jun 18 Sell Lars Bäck Individual 07. Jun 18 07. Jun 18 -10,000 SEK21.10 SEK-211,000
X
Management checks
We assess Softronic's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Softronic has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Do Softronic AB’s (STO:SOF B) Returns On Capital Employed Make The Cut?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Is Softronic AB's (STO:SOF B) P/E Ratio Really That Good?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Softronic AB's (STO:SOF B) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Do Insiders Own Lots Of Shares In Softronic AB (STO:SOF B)?

The big shareholder groups in Softronic AB (STO:SOF B) have power over the company. … Softronic is a smaller company with a market capitalization of kr868m, so it may still be flying under the radar of many institutional investors. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Does Softronic AB (STO:SOF B) Have A High Beta?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … To use beta as an investor, you must first understand that the overall market has a beta of one. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

The Softronic Share Price Has Gained 115%, So Why Not Pay It Some Attention?

One great example is Softronic AB (STO:SOF B) which saw its share price drive 115% higher over five years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Softronic achieved compound earnings per share (EPS) growth of 14% per year.

Simply Wall St -

Company Info

Description

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, compliance manager, business system, office support, travel and event, issue management system, e-commerce, e-health, and digitization solutions. It also provides artificial intelligence, member system, premium solution partner, digital market communication, it and business management, customer care system, and outsourcing solutions, as well as solutions for administration and communication between students, teachers, and parents. Softronic AB was founded in 1984 and is headquartered in Stockholm, Sweden.

Details
Name: Softronic AB
SOF B
Exchange: OM
Founded: 1984
SEK921,074,052
52,632,803
Website: http://www.softronic.se
Address: Softronic AB
Hammarby kaj 10A,
Stockholm,
120 32,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM SOF B Class B Shares OMX Nordic Exchange Stockholm SE SEK 03. Dec 1998
DB SF7 Class B Shares Deutsche Boerse AG DE EUR 03. Dec 1998
LSE 0GU8 Class B Shares London Stock Exchange GB SEK 03. Dec 1998
Number of employees
Current staff
Staff numbers
438
Softronic employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/17 20:42
End of day share price update: 2019/04/17 00:00
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.