Valuation Update With 7 Day Price Move • Mar 25
Investor sentiment deteriorates as stock falls 32% After last week's 32% share price decline to €21.00, the stock trades at a trailing P/E ratio of 2.2x. Average trailing P/E is 16x in the Consumer Services industry in Europe. Total loss to shareholders of 13% over the past three years. Reported Earnings • Mar 19
Full year 2025 earnings released Full year 2025 results: Net income: €3.01m (up 409% from FY 2024). Tillkännagivande • Mar 18
AB K2 LT, Annual General Meeting, Apr 07, 2026 AB K2 LT, Annual General Meeting, Apr 07, 2026, at 11:00 FLE Standard Time. Location: v. gerulaicio str. 10, vilnius, simbiocity business centre, egles zalciu karalienes, Lithuania New Risk • Feb 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 15% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Revenue is less than US$5m (€1.9m revenue, or US$2.3m). Market cap is less than US$100m (€9.35m market cap, or US$11.1m). New Risk • Sep 12
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: €8.23m (US$9.66m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 15% per year over the past 5 years. Market cap is less than US$10m (€8.23m market cap, or US$9.66m). Minor Risks Share price has been volatile over the past 3 months (4.1% average weekly change). Revenue is less than US$5m (€1.9m revenue, or US$2.2m). Declared Dividend • Apr 30
Dividend of €1.00 announced Dividend of €1.00 is the same as last year. Ex-date: 20th May 2025 Payment date: 1st January 1970 Dividend yield will be 3.4%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by earnings (53% earnings payout ratio) but not adequately covered by cash flows (94% cash payout ratio). The dividend has not increased over the past 3 years but payments have been stable during that time. Earnings per share has grown by 3.2% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 04
Full year 2024 earnings released Full year 2024 results: Revenue: €1.92m (up 3.8% from FY 2023). Net income: €592.1k (up 10% from FY 2023). Profit margin: 31% (up from 29% in FY 2023). The increase in margin was driven by higher revenue. New Risk • Feb 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Share price has been volatile over the past 3 months (4.3% average weekly change). Revenue is less than US$5m (€1.9m revenue, or US$2.0m). Market cap is less than US$100m (€9.54m market cap, or US$10.0m). New Risk • Jan 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Lithuanian stocks, typically moving 3.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (€9.29m market cap, or US$9.57m). Minor Risks Share price has been volatile over the past 3 months (3.9% average weekly change). Revenue is less than US$5m (€1.9m revenue, or US$1.9m). Tillkännagivande • Jan 10
K2 LT Announces Resignation of Vidas Andrikis, Board Member K2 LT announced following the sale of his entire shareholding, board member Vidas Andrikis has submitted his resignation. Despite this change, the board of directors continues to operate effectively with four out of five members, ensuring no disruption to the company's daily operations or business development projects. Buy Or Sell Opportunity • Jan 02
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 3.8% to €27.20. The fair value is estimated to be €22.50, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 9.8% over the last 3 years. Earnings per share has declined by 24%. Tillkännagivande • Jan 01
AB K2 LT Announces Resignation of Vidas Andrikis as a Board Member AB K2 LT announced that Effective from close of business December 31, 2024 board member Vidas Andrikis resigns from his position as a board member of AB K2 LT. New Risk • Sep 13
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 4.1% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Shares are highly illiquid. Market cap is less than US$10m (€7.80m market cap, or US$8.65m). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Revenue is less than US$5m (€1.9m revenue, or US$2.1m). Tillkännagivande • May 03
AB K2 LT Approves Dividend for the Year 2023 AB K2 LT at its Annual General Meeting of Shareholders held on April 30, 2024, approved the dividends of EUR 1 per share shall be paid to the shareholders, EUR 311,822 in total for the year 2023. Reported Earnings • Mar 18
Full year 2023 earnings released: EPS: €1.73 (vs €2.30 in FY 2022) Full year 2023 results: EPS: €1.73 (down from €2.30 in FY 2022). Revenue: €1.85m (down 17% from FY 2022). Net income: €538.0k (down 25% from FY 2022). Profit margin: 29% (down from 32% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. New Risk • Feb 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (4.7% average weekly change). High level of non-cash earnings (27% accrual ratio). Market cap is less than US$10m (€7.42m market cap, or US$8.00m). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (26% net profit margin). Revenue is less than US$5m (€2.0m revenue, or US$2.1m). New Risk • Aug 04
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 27% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (27% accrual ratio). Market cap is less than US$10m (€8.05m market cap, or US$8.80m). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (3.7% average weekly change). Profit margins are more than 30% lower than last year (26% net profit margin). Revenue is less than US$5m (€2.0m revenue, or US$2.1m). Reported Earnings • Jul 30
Full year 2022 earnings released Full year 2022 results: Revenue: €2.23m (down 12% from FY 2021). Net income: €717.0k (down 38% from FY 2021). Profit margin: 32% (down from 46% in FY 2021). The decrease in margin was primarily driven by lower revenue. New Risk • Jul 13
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Lithuanian stocks, typically moving 3.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (3.9% average weekly change). Market cap is less than US$10m (€8.05m market cap, or US$8.97m). Minor Risks Latest financial reports are more than 6 months old (reported June 2022 fiscal period end). Short dividend paying track record (1 year of continuous dividend payments). Revenue is less than US$5m (€2.5m revenue, or US$2.8m). Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. No independent directors (5 non-independent directors). Deputy MD & Director Vidas Andrikis was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Aug 02
First half 2022 earnings released First half 2022 results: Revenue: (down 100% from 1H 2021). Net income: (down €624.6k from profit in 1H 2021). Profit margin: (down from 50% in 1H 2021). The decrease in margin was driven by lower expenses. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 5 non-independent directors. Deputy MD & Director Vidas Andrikis was the last director to join the board, commencing their role in 2019. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 16
Full year 2021 earnings: Revenues in line with analyst expectations Full year 2021 results: Revenue: €2.53m (up 24% from FY 2020). Net income: €1.16m (up 22% from FY 2020). Profit margin: 46% (in line with FY 2020). Revenue was in line with analyst estimates. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment deteriorated over the past week After last week's 19% share price decline to €28.20, the stock trades at a trailing P/E ratio of 8.7x. Average trailing P/E is 24x in the Consumer Services industry in Europe. Total returns to shareholders of 66% over the past three years. Tillkännagivande • Feb 26
AB K2 LT Announces Resignation of Raimondas Kriunas as Board Member Effective from close of business March 4, 2022 board member Raimondas Kriunas resigns from his position as a board member of AB K2 LT. Is New 90 Day High Low • Feb 19
New 90-day high: €30.60 The company is up 13% from its price of €27.20 on 20 November 2020. The Lithuanian market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Services industry, which is up 8.0% over the same period. Is New 90 Day High Low • Jan 04
New 90-day high: €29.60 The company is up 10.0% from its price of €27.00 on 05 October 2020. The Lithuanian market is also up 10.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the Consumer Services industry, which is up 6.0% over the same period. Is New 90 Day High Low • Dec 12
New 90-day high: €29.00 The company is up 16% from its price of €25.00 on 11 September 2020. The Lithuanian market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Services industry, which is up 7.0% over the same period. Is New 90 Day High Low • Nov 26
New 90-day high: €27.80 The company is up 3.0% from its price of €27.00 on 28 August 2020. The Lithuanian market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is up 8.0% over the same period. Is New 90 Day High Low • Sep 24
New 90-day high: €27.60 The company is up 18% from its price of €23.40 on 25 June 2020. The Lithuanian market is up 5.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Consumer Services industry, which is up 20% over the same period.