Strong Balance SheetLow leverage and a conservatively financed balance sheet provide durable financial flexibility. With debt-to-equity around 0.09, Softronic can fund investments, absorb revenue variability, and support operations or dividends without immediate refinancing risk, strengthening resilience over months.

Recurring Managed-services RevenueA business mix that includes managed services and outsourcing creates recurring, contractually backed revenue streams. These contracts improve predictability, support retention and cross-sell, and anchor client relationships—advantages that stabilize revenue and margins over the medium term.

Prior Strong Cash GenerationHistorically strong free cash flow demonstrates the company’s ability to convert earnings into cash. That track record implies management can restore cash conversion through working-capital and operational fixes, and provides a foundation for funding growth or payouts once the 2025 setback is addressed.

Bears Say

Sharp Margin CompressionA roughly halved gross margin signals structural pressure from pricing, cost inflation, or adverse project mix. Sustained lower gross margins erode the company’s buffer to cover fixed costs and investments, forcing either efficiency gains or price recovery to restore long-term profitability.

Free Cash Flow CollapsedFCF falling to zero sharply reduces internal funding capacity for capex, acquisitions, or shareholder returns. Even with positive operating cash flow, the collapse indicates working-capital or investment timing issues that constrain financial flexibility and raise execution risk over the coming months.

Earnings And Margin DeteriorationDeclining net and operating margins, alongside negative EPS growth, weaken the company’s earnings power. Persisting margin deterioration reduces reinvestment capacity and makes it harder to fund strategic initiatives, increasing the likelihood of cost-cutting or margin-restoration measures that may affect growth.

SF7 FAQ

What was Softronic AB Class B’s price range in the past 12 months?

Softronic AB Class B lowest stock price was €1.91 and its highest was €2.22 in the past 12 months.

What is Softronic AB Class B’s market cap?

Softronic AB Class B’s market cap is €103.27M.

When is Softronic AB Class B’s upcoming earnings report date?

The company’s upcoming earnings report date is not yet available.

How were Softronic AB Class B’s earnings last quarter?

Currently, no data Available

Is Softronic AB Class B overvalued?

According to Wall Street analysts Softronic AB Class B’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Softronic AB Class B pay dividends?

Softronic AB Class B does not currently pay dividends.

What is Softronic AB Class B’s EPS estimate?

Softronic AB Class B’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Softronic AB Class B have?

Softronic AB Class B has 49,632,805 shares outstanding.

What happened to Softronic AB Class B’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of Softronic AB Class B?

Currently, no hedge funds are holding shares in DE:SF7

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Softronic AB Class B

Softronic AB (publ) provides IT and management services primarily in Sweden. It offers AI, AML, automation, business development, case management system, cloud, customer relationship management, ERP systems, management, Microsoft, operation, information security, vulnerability analyses, UX/design, web, and system solutions, as well as consultancy services. The company was incorporated in 1984 and is headquartered in Stockholm, Sweden.