OM:NETI B

Stock Analysis Report

Executive Summary

Net Insight AB (publ) develops products and services for media transport worldwide.

Rewards

Trading at 7.4% below its fair value

Earnings are forecast to grow 91.76% per year

Risk Analysis

Highly volatile share price over past 3 months

Does not have a meaningful market cap (SEK865M)



Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.1%

NETI B

4.0%

SE Communications

2.1%

SE Market


1 Year Return

-13.7%

NETI B

11.3%

SE Communications

24.5%

SE Market

Return vs Industry: NETI B underperformed the Swedish Communications industry which returned 9.8% over the past year.

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


Shareholder returns

NETI BIndustryMarket
7 Day-1.1%4.0%2.1%
30 Day-2.8%3.4%2.7%
90 Day71.9%-1.8%8.6%
1 Year-13.7%-13.7%12.6%11.3%29.7%24.5%
3 Year-75.2%-75.2%67.4%59.6%40.8%19.2%
5 Year-35.3%-35.3%-3.4%-14.5%58.0%24.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NETI B (SEK2.26) is trading below our estimate of fair value (SEK2.44)

Significantly Below Fair Value: NETI B is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: NETI B 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 NETI B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NETI B is good value based on its PB Ratio (1.7x) compared to the SE Communications industry average (1.8x).


Next Steps

Future Growth

How is Net Insight forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

91.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NETI B is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: NETI B is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NETI B's is expected to become profitable in the next 3 years.

Revenue vs Market: NETI B's revenue (5.3% per year) is forecast to grow faster than the Swedish market (4.4% per year).

High Growth Revenue: NETI B's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NETI B's Return on Equity is forecast to be low in 3 years time (1.8%).


Next Steps

Past Performance

How has Net Insight performed over the past 5 years?

-69.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NETI B is currently unprofitable.

Growing Profit Margin: NETI B is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NETI B is unprofitable, and losses have increased over the past 5 years at a rate of -69.2% per year.

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

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


Return on Equity

High ROE: NETI B has a negative Return on Equity (-10.62%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Net Insight's financial position?


Financial Position Analysis

Short Term Liabilities: NETI B's short term assets (SEK245.1M) exceed its short term liabilities (SEK145.5M).

Long Term Liabilities: NETI B's short term assets (SEK245.1M) exceed its long term liabilities (SEK62.6M).


Debt to Equity History and Analysis

Debt Level: NETI B is debt free.

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

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

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


Balance Sheet

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.4%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

1.8yrs

Average management tenure


CEO

Anders Harrysson (60yo)

0.3yrs

Tenure

kr300,000

Compensation

Mr. Anders Harrysson serves as the President of Central and North Europe at Sun Microsystems. Mr. Harrysson serves as an Industrial Advisor at Segulah Advisor AB. He served as the Chief Executive Officer o ...


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: NETI B's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.7yrs

Average Tenure

58yo

Average Age

Experienced Board: NETI B's board of directors are considered experienced (3.7 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

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


Management Team

  • Anders Harrysson (60yo)

    Interim CEO & Director

    • Tenure: 0.3yrs
    • Compensation: kr300.00k
  • Dan Donnelly

    Head of Sales for the Americas

    • Tenure: 2.8yrs
  • Ralph Quintero

    Head of Neti Innovation Labs

    • Tenure: 3.8yrs
  • Pelle Bourn (55yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
  • Katarina Dufvenmark

    Head of People

    • Tenure: 0.4yrs

Board Members

  • Anders Harrysson (60yo)

    Interim CEO & Director

    • Tenure: 0.3yrs
    • Compensation: kr300.00k
  • Stina Barchan (73yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: kr240.00k
  • Margot Fransson (59yo)

    Chairman

    • Tenure: 1.7yrs
    • Compensation: kr650.00k
  • Charlotta Falvin (53yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: kr290.00k
  • Crister Fritzson (58yo)

    Director

    • Tenure: 7yrs
    • Compensation: kr280.00k
  • Stina Barchan (42yo)

    Deputy Director

    • Tenure: 3yrs
    • Compensation: kr120.00k
  • Mathias Berg (44yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: kr160.00k

Company Information

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


Key Information

  • Name: Net Insight AB (publ)
  • Ticker: NETI B
  • Exchange: OM
  • Founded: 1997
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: kr859.292m
  • Shares outstanding: 382.76m
  • Website: https://www.netinsight.net

Number of Employees


Location

  • Net Insight AB (publ)
  • P.O. Box 1200
  • Solna
  • Stockholm County
  • 171 23
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSGBDB (Deutsche Boerse AG)YesClass B SharesDEEURJun 1999
NETI BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJun 1999
0H14LSE (London Stock Exchange)YesClass B SharesGBSEKJun 1999
NETIBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJun 1999

Biography

Net Insight AB (publ) develops products and services for media transport worldwide. The company offers Nimbra, a solution for transport of professional media content over media networks; ScheduALL, a planning tool for intelligent scheduling and resource management for production and distribu¬tion of TV content; and Sye, a solution for live and synchronized TV content distributed over the Internet and live Over-The-Top network. It also provides orchestration and network apps; professional services, including network design, planning, and scheduling; support, consulting, and training; and managed services. The company sells its products and services through its sales force and network partner. It serves broadcasters, service providers, content owners, and production and post-production companies. Net Insight AB (publ) was founded in 1997 and is headquartered in Solna, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/19 20:36
End of Day Share Price2020/01/17 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.