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 Analysis

High growth potential with acceptable track record.

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

Stable Share Price: VIT B's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.1%

VIT B

-8.1%

SE Software

-9.5%

SE Market


1 Year Return

121.3%

VIT B

95.1%

SE Software

12.3%

SE Market

Return vs Industry: VIT B exceeded the Swedish Software industry which returned 95.1% over the past year.

Return vs Market: VIT B exceeded the Swedish Market which returned 12.3% over the past year.


Shareholder returns

VIT BIndustryMarket
7 Day-12.1%-8.1%-9.5%
30 Day-10.5%14.1%-3.8%
90 Day25.4%40.2%0.6%
1 Year124.1%121.3%97.4%95.1%16.5%12.3%
3 Year179.4%168.3%133.5%123.8%25.5%7.5%
5 Year489.6%450.0%198.4%170.5%34.9%7.5%

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?

61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VIT B (SEK192.5) is trading above our estimate of fair value (SEK131.25)

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


Price To Earnings Ratio

PE vs Industry: VIT B is good value based on its PE Ratio (61x) compared to the Software industry average (61x).

PE vs Market: VIT B is poor value based on its PE Ratio (61x) compared to the Swedish market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: VIT B is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: VIT B is overvalued based on its PB Ratio (8.3x) compared to the SE Software industry average (5.9x).


Next Steps

Future Growth

How is Vitec Software Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIT B's forecast earnings growth (21.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: VIT B's earnings (21.3% per year) are forecast to grow faster than the Swedish market (8% per year).

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

Revenue vs Market: VIT B's revenue (7.9% per year) is forecast to grow faster than the Swedish market (4.6% per year).

High Growth Revenue: VIT B's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VIT B's Return on Equity is forecast to be high in 3 years time (24.6%)


Next Steps

Past Performance

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

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIT B has high quality earnings.

Growing Profit Margin: VIT B's current net profit margins (7.9%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: VIT B's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: VIT B's earnings growth over the past year (5.4%) is below its 5-year average (12.1% per year).

Earnings vs Industry: VIT B earnings growth over the past year (5.4%) exceeded the Software industry -0.9%.


Return on Equity

High ROE: VIT B's Return on Equity (13.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vitec Software Group's financial position?


Financial Position Analysis

Short Term Liabilities: VIT B's short term assets (SEK285.0M) do not cover its short term liabilities (SEK353.1M).

Long Term Liabilities: VIT B's short term assets (SEK285.0M) do not cover its long term liabilities (SEK777.8M).


Debt to Equity History and Analysis

Debt Level: VIT B's debt to equity ratio (61.9%) is considered high.

Reducing Debt: VIT B's debt to equity ratio has reduced from 72.9% to 61.9% over the past 5 years.

Debt Coverage: VIT B's debt is well covered by operating cash flow (59.1%).

Interest Coverage: VIT B's interest payments on its debt are well covered by EBIT (11.2x 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?

0.70%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Vitec Software Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.7%marketbottom25%1.7%markettop25%4.5%industryaverage0.7%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: VIT B's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.75%).

High Dividend: VIT B's dividend (0.7%) is low compared to the top 25% of dividend payers in the Swedish market (4.53%).


Stability and Growth of Payments

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

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

4.0yrs

Average management tenure


CEO

Lars Stenlund (61yo)

30.1yrs

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 ($USD359.47K) is below average for companies of similar size in the Swedish market ($USD617.86K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lars Stenlund
Founder & CEO30.1yrskr3.47m5.29% SEK344.5m
Olle Backman
Chief Financial Officer0.7yrsno datano data
Patrik Fransson
Vice CEO0yrsno data0.33% SEK21.5m
Jerker Vallbo
CIO & CTO0yrsno data1.46% SEK95.1m
Johnny Kölfors
Managing Director of Vitec Veriba AB0yrsno datano data
Lars Eriksson
Vice CEO and VP of M&A and Business Development0yrsno data0.064% SEK4.2m
Niklas Berg
Managing Director0yrsno datano data
Magnus Persson
Head of Vitec Business Area Real Estate4yrsno datano data
Janne Vainio
Chief Executive Officer of Vitec Health0yrsno datano data
Kjell Hedström
Controller0yrsno datano data

4.0yrs

Average Tenure

57yo

Average Age

Experienced Management: VIT B's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Crister Stjernfelt
Chairman of the Board7.1yrskr270.00k0.025% SEK1.6m
Birgitta Johansson-Hedberg
Independent Director9.1yrskr135.00k0.023% SEK1.5m
Kaj Sandart
Independent Director22.1yrskr135.00k0.37% SEK24.2m
Jan Friedman
Independent Director10.1yrskr135.00k0.79% SEK51.7m
Anna Valtonen
Independent Director7.8yrskr135.00kno data

9.1yrs

Average Tenure

67yo

Average Age

Experienced Board: VIT B's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VIT B insiders have only sold shares 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 7.7%.


Top Shareholders

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: kr6.515b
  • Shares outstanding: 32.57m
  • 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, Finance & Insurance, Environment, Estate Agents, and Education & Health segments. The Auto segment offers software for the automotive and machinery sectors. This segment’s products support work processes, including vehicle sales, vehicle service centers, tire storage, and distribution of auto components. The Energy segment develops forecasting systems for electricity traders, and calculation and mapping systems for owners of electricity and district-heating grids. The Real Estate segment offers a cloud-based software for project and business support; and enterprise systems for the construction and real estate sectors covering leasing, sales, customer service, accounting, technical property management, and energy-consumption monitoring. The Finance & Insurance segment develops software for banks, financial institutions, and insurance companies. The Environment segment develops products software for private and municipal waste-and-resource processing for various applications comprising weighing of waste and driving schedules, invoicing, accounting, and reporting. The Estate Agents segment develops software to support estate agents. The Education & Health segment develops software for churching operations; enterprise system for managing the pharmacy workflow; and software for municipal leisure and cultural departments, and individuals with reading and writing difficulties, as well as public and private education companies. It also provides software for healthcare companies, which are wholly Web-based enterprise systems used by district healthcare centers, hospitals, physiotherapy, and rehabilitation facilities, as well as occupational health services and public organizations. The company was founded in 1985 and is headquartered in Umeå, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 21:00
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
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.