OM:VIT B

Stock Analysis Report

Vitec Software Group

Executive Summary

Vitec Software Group AB (publ), a software company, provides vertical market software in the Nordic and Baltic countries, the rest of Europe, and the Middle East.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.

Share Price & News

How has Vitec Software Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

VIT B

-0.6%

SE Software

2.7%

SE Market


1 Year Return

67.7%

VIT B

21.8%

SE Software

10.0%

SE Market

Return vs Industry: VIT B exceeded the Swedish Software industry which returned 21.8% over the past year.

Return vs Market: VIT B exceeded the Swedish Market which returned 10% over the past year.


Shareholder returns

VIT BIndustryMarket
7 Day0%-0.6%2.7%
30 Day7.7%3.7%1.9%
90 Day10.6%9.1%3.2%
1 Year69.8%67.7%23.2%21.8%14.7%10.0%
3 Year101.1%93.1%96.8%89.7%31.1%11.4%
5 Year457.9%420.4%111.3%100.7%61.5%27.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Vitec Software Group undervalued compared to its fair value and its price relative to the market?

40.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: VIT B (SEK140.5) is trading above our estimate of fair value (SEK117.7)

Significantly Undervalued: VIT B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VIT B is poor value based on its PE Ratio (40.4x) compared to the Software industry average (37.9x).

PE vs Market: VIT B is poor value based on its PE Ratio (40.4x) compared to the Swedish market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: VIT B is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: VIT B is overvalued based on its PB Ratio (6.5x) compared to the SE Software industry average (4x).


Next Steps

Future Growth

How is Vitec Software Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIT B's forecast earnings growth (12.3% per year) is above the savings rate (0.4%).

Earnings vs Market: VIT B's earnings (12.3% per year) are forecast to grow faster than the Swedish market (9.4% per year).

High Growth Earnings: VIT B's earnings are forecast to grow, but not significantly.

Revenue vs Market: VIT B's revenue (2.3% per year) is forecast to grow slower than the Swedish market (4.5% per year).

High Growth Revenue: VIT B's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: VIT B's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has Vitec Software Group performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VIT B's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: VIT B's earnings growth over the past year (44.1%) exceeds its 5-year average (14.5% per year).

Earnings vs Industry: VIT B earnings growth over the past year (44.1%) exceeded the Software industry 10.4%.


Return on Equity

High ROE: VIT B's Return on Equity (15.6%) is considered low.


Return on Assets

ROA vs Industry: VIT B has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: VIT B's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Vitec Software Group's financial position?


Financial Position Analysis

Short Term Liabilities: VIT B's short term assets (SEK275.1M) do not cover its short term liabilities (SEK373.3M)

Long Term Liabilities: VIT B's short term assets (275.1M) do not cover its long term liabilities (741.1M)


Debt to Equity History and Analysis

Debt Level: VIT B's debt to equity ratio (71.6%) is considered high

Reducing Debt: VIT B's debt to equity ratio has reduced from 90.3% to 71.6% over the past 5 years.

Debt Coverage: VIT B's debt is well covered by operating cash flow (52.7%).

Interest Coverage: VIT B's interest payments on its debt are well covered by EBIT (13.4x coverage).


Balance Sheet

Inventory Level: VIT B has a low level of unsold assets or inventory.

Debt Coverage by Assets: VIT B's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Vitec Software Group's current dividend yield, its reliability and sustainability?

0.85%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.8%markettop25%4.7%industryaverage1.1%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VIT B's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.8%).

High Dividend: VIT B's dividend (0.85%) is low compared to the top 25% of dividend payers in the Swedish market (4.67%).

Stable Dividend: VIT B is not paying a notable dividend for the Swedish market, therefore no need to check if payments are stable.

Growing Dividend: VIT B is not paying a notable dividend for the Swedish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: VIT 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 VIT B's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Lars Stenlund (61yo)

29.8yrs

Tenure

kr3,471,000

Compensation

Mr. Lars Stenlund, Ph.D. served as Director of Railcare Group AB (publ) until 2019. He is the Founder of Vitec Software Group AB and has been its Chief Executive Officer since 1990. Mr. Stenlund serves Cha ...


CEO Compensation Analysis

Compensation vs. Market: Lars's total compensation ($USD357.34K) is about average for companies of similar size in the Swedish market ($USD496.37K).

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


Management Age and Tenure

3.7yrs

Average Tenure

57yo

Average Age

Experienced Management: VIT B's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

67yo

Average Age

Experienced Board: VIT B's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Olle Backman (50yo)

    Chief Financial Officer

    • Tenure: 0.3yrs
  • Lars Stenlund (61yo)

    Founder & CEO

    • Tenure: 29.8yrs
    • Compensation: kr3.47m
  • Lars Eriksson (64yo)

    Vice CEO and VP of M&A and Business Development

    • Tenure: 0yrs
  • Johnny Kölfors

    Managing Director of Vitec Veriba AB

    • Tenure: 0yrs
  • Kjell Hedström

    Controller

    • Tenure: 0yrs
  • Jerker Vallbo

    CIO & CTO

    • Tenure: 0yrs
  • Patrik Fransson (53yo)

    Vice CEO

    • Tenure: 0yrs
  • Niklas Berg

    Managing Director

    • Tenure: 0yrs
  • Magnus Persson

    Head of Vitec Business Area Real Estate

    • Tenure: 3.7yrs
  • Janne Vainio

    Chief Executive Officer of Vitec Health

    • Tenure: 0yrs

Board Members

  • Crister Stjernfelt (76yo)

    Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: kr270.00k
  • Birgitta Johansson-Hedberg (72yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: kr135.00k
  • Kaj Sandart (66yo)

    Director

    • Tenure: 21.8yrs
    • Compensation: kr135.00k
  • Jan Friedman (67yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: kr135.00k
  • Anna Valtonen (45yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: kr135.00k

Company Information

Vitec Software Group AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vitec Software Group AB (publ)
  • Ticker: VIT B
  • Exchange: OM
  • Founded: 1985
  • Industry: Application Software
  • Sector: Software
  • Market Cap: kr4.548b
  • Shares outstanding: 32.37m
  • Website: https://www.vitecsoftware.com

Number of Employees


Location

  • Vitec Software Group AB (publ)
  • Tvistevägen 47A
  • Umeå
  • Västerbotten County
  • 907 29
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VIT BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJun 1999
0RDILSE (London Stock Exchange)YesClass B SharesGBSEKJun 1999
VITBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJun 1999

Biography

Vitec Software Group AB (publ), a software company, provides vertical market software in the Nordic and Baltic countries, the rest of Europe, and the Middle East. It operates in Auto, Energy, Real Estate,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:46
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.