Company DescriptionVitec Software Group AB (publ) develops and delivers vertical market software in Sweden, Denmark, Finland, Norway, and internationally. The company offers software for municipal culture and recreation administration offices, as well as other visitor facilities; healthcare companies; church activities; banking and finance industry; information management within the process industry and energy companies; social services sector; automotive, transportation, and machinery industry; local associations and national organizations; construction and property management industry; pharmacy market; car dealers and auto repair shops; electricity traders, and owners of electricity and district heating grids; hair and beauty salons; and welfare sectors. It also provides software for preschools; real estate agents; education sector; golf courses; liability insurance companies; building and facility management; private and municipal waste and resource processing; media companies; and insurance companies. Vitec Software Group AB (publ) was incorporated in 1985 and is headquartered in Umeå, Sweden.

How the Company Makes Money

Vitec Software Group AB Class B Financial Statement Overview

Summary

Vitec Software Group AB Class B presents a strong financial profile with robust revenue growth and profitability. The balance sheet is stable with moderate leverage, and cash flow generation is solid, supporting future growth and potential dividend distributions. While the company shows strong operational efficiency and cash conversion, continued monitoring of leverage is advisable as it grows.

Income Statement

Very Positive

The company has demonstrated strong revenue growth, with a significant increase in total revenue over recent years. The TTM gross profit margin is robust at approximately 39.2%, indicating efficient cost management. The net profit margin is around 11.7%, reflecting solid profitability. EBIT and EBITDA margins are also healthy, at about 20% and 39% respectively, showcasing operational efficiency.

Balance Sheet

Positive

The balance sheet is strong, with a debt-to-equity ratio of 0.50, suggesting a moderate level of leverage. Return on equity (ROE) is approximately 8.7%, which is decent, showing the company is effectively generating returns on shareholders' investments. The equity ratio is about 47.3%, indicating a stable capital structure with a good proportion of equity financing.

Cash Flow

Very Positive

The company shows a strong cash flow position, with a healthy operating cash flow to net income ratio of 2.71, reflecting efficient cash generation relative to net income. The free cash flow growth rate is impressive, indicating the company is enhancing its ability to generate cash after capital expenditures. The free cash flow to net income ratio stands at a robust 1.93, showcasing strong cash conversion.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.50B	3.33B	2.78B	1.98B	1.57B	1.31B
	Gross Profit
1.37B	1.23B	1.05B	1.19B	926.99M	755.25M
	EBIT
698.40M	697.43M	590.12M	355.84M	283.05M	222.43M
	EBITDA
1.34B	1.32B	940.05M	620.70M	496.64M	389.25M
	Net Income Common Stockholders
407.65M	410.10M	339.18M	244.87M	206.94M	160.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
483.15M	243.55M	171.85M	615.79M	119.85M	134.69M
	Total Assets
9.86B	10.08B	7.83B	6.32B	3.75B	2.21B
	Total Debt
2.36B	2.54B	2.26B	1.63B	873.76M	616.71M
	Net Debt
1.87B	2.30B	2.09B	1.01B	753.90M	482.01M
	Total Liabilities
5.19B	5.18B	4.42B	3.11B	1.76B	1.36B
	Stockholders Equity
4.67B	4.91B	3.41B	3.21B	1.99B	843.35M
Cash Flow		Free Cash Flow
788.41M	546.46M	341.45M	278.02M	259.83M	263.44M
	Operating Cash Flow
1.10B	949.04M	718.40M	563.37M	488.02M	436.33M
	Investing Cash Flow
-2.30B	-1.96B	-1.68B	-1.44B	-1.51B	-340.13M
	Financing Cash Flow
1.06B	1.10B	489.91M	1.34B	1.02B	38.49M

Vitec Software Group AB Class B Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7VS		€1.67B	45.22	9.58%	0.63%	―	―
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%
LTX		€503.74M	60.26	29.90%	0.87%	―	―
AR7		€1.25B	37.55	15.33%	1.09%	―	―
49X0		€2.18B	50.28	28.15%	0.51%	―	―
KOW		€329.33M	43.93	1.97%	2.77%	―	―
PIU0		€286.68M	15.84	18.16%	1.95%	―	―

* Technology Sector Average

Performance Comparison

DE:7VS

Vitec Software Group AB Class B

41.76

-5.33

-11.32%

DE:LTX

Lime Technologies AB

37.40

6.08

19.41%

DE:AR7

Addnode Group AB Class B

9.17

-1.18

-11.40%

DE:49X0

Truecaller AB Class B

6.30

3.11

97.49%

DE:KOW

Knowit AB

11.80

-3.47

-22.72%

DE:PIU0

Proact IT Group AB

10.68

-1.99

-15.71%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.