OM:EFFP

Stock Analysis Report

Effnetplattformen

Executive Summary

Effnetplattformen AB (publ), through its subsidiaries, provides header compression products.

Risk Analysis

Earnings have declined by -13.3% per year over past 5 years

Makes less than USD$1m in revenue (SEK9M)

Does not have a meaningful market cap (SEK59M)

Currently unprofitable and not forecast to become profitable over the next 3 years



Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

EFFP

-6.4%

SE Communications

-0.6%

SE Market


1 Year Return

-5.7%

EFFP

-0.9%

SE Communications

23.8%

SE Market

Return vs Industry: EFFP underperformed the Swedish Communications industry which returned 10.4% over the past year.

Return vs Market: EFFP underperformed the Swedish Market which returned 26.1% over the past year.


Shareholder returns

EFFPIndustryMarket
7 Day0%-6.4%-0.6%
30 Day0%-3.6%1.4%
90 Day4.3%-6.5%6.4%
1 Year-5.7%-5.7%0.3%-0.9%28.9%23.8%
3 Year-72.3%-73.7%56.4%49.1%38.9%17.6%
5 Yearn/a-8.3%-18.9%53.2%20.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate EFFP's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate EFFP's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: EFFP is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: EFFP is unprofitable, so we can't compare its PE Ratio to the Swedish market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EFFP is overvalued based on its PB Ratio (2.5x) compared to the SE Communications industry average (1.8x).


Next Steps

Future Growth

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

43.0%

Forecasted Tech 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 Effnetplattformen 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 Effnetplattformen performed over the past 5 years?

-13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EFFP is currently unprofitable.

Growing Profit Margin: EFFP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EFFP is unprofitable, and losses have increased over the past 5 years at a rate of -13.3% per year.

Accelerating Growth: Unable to compare EFFP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EFFP is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (49.1%).


Return on Equity

High ROE: EFFP has a negative Return on Equity (-7.7%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Effnetplattformen's financial position?


Financial Position Analysis

Short Term Liabilities: EFFP's short term assets (SEK26.2M) exceed its short term liabilities (SEK2.6M).

Long Term Liabilities: EFFP's short term assets (SEK26.2M) exceed its long term liabilities (SEK351.0K).


Debt to Equity History and Analysis

Debt Level: EFFP is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if EFFP's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EFFP has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: EFFP has sufficient cash runway for 2.6 years if free cash flow continues to reduce at historical rates of -85.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.4%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate EFFP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EFFP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EFFP'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 EFFP'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 Effnetplattformen's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average board tenure


CEO

Aniruddha Kulkarni (46yo)

4yrs

Tenure

kr975,000

Compensation

Mr. Aniruddha Kulkarni has been President of Effnetplattformen AB (publ) since 2016. Mr. Kulkarni served as President of Stendörren Fastigheter AB (publ) since February 2014. He served as President of prev ...


CEO Compensation Analysis

Compensation vs Market: Aniruddha's total compensation ($USD103.03K) is below average for companies of similar size in the Swedish market ($USD235.67K).

Compensation vs Earnings: Aniruddha's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

4.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: EFFP's board of directors are considered experienced (4 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.


Recent Insider Transactions

Buykr8,80324 May 19
Mattias Ekström
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,659
Max Pricekr5.31

Ownership Breakdown

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


Management Team

  • Sten Sundén (53yo)

    Chief Financial Officer

    • Tenure: 4yrs
  • Aniruddha Kulkarni (46yo)

    President

    • Tenure: 4yrs
    • Compensation: kr975.00k

Board Members

  • Göran Larsson (75yo)

    Director

    • Tenure: 4yrs
  • Hans Runesten (63yo)

    Chairman of the Board

    • Tenure: 4yrs
  • Erik Nerpin (58yo)

    Director

    • Tenure: 4yrs
  • Mattias Ekström (45yo)

    Director

    • Tenure: 3yrs

Company Information

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


Key Information

  • Name: Effnetplattformen AB (publ)
  • Ticker: EFFP
  • Exchange: OM
  • Founded:
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: kr56.578m
  • Shares outstanding: 9.04m
  • Website: https://www.effnetplattformen.se

Location

  • Effnetplattformen AB (publ)
  • Stationsgatan 69
  • Lulea
  • Norrbotten County
  • 972 34
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EFFPOM (OMX Nordic Exchange Stockholm)YesShare CapitalSESEKJan 2017

Biography

Effnetplattformen AB (publ), through its subsidiaries, provides header compression products. The company develops and sells the Effnet Header Compression product family, which consists of software applications that increase the productivity, speed, and reliability of Internet Protocol traffic in fixed, mobile, and satellite networks. Its customers include chipset companies and manufacturers of satellite and telecommunications equipment. The company is based in Lulea, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/26 22:35
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
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.