4C Group AB (4C) AI Stock Analysis

• Market Cap: kr378.92M
• Dividend Yield: N/A
• Average Volume (3M): 108.68K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.65
• Revenue Growth: 4.32%
• EPS Growth: 57.79%
• Country: SE
• Employees: 200
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.00
• Shares Outstanding: 38,274,998
• 10 Day Avg. Volume: 95,613
• 30 Day Avg. Volume: 108,676
• PEG Ratio: 1.58
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 1.01
• P/FCF Ratio: -5.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: kr9.50 ▲(0.21% Upside)

4C Group AB's overall stock score is primarily impacted by its challenging financial performance, with significant cash flow issues and declining revenue growth. The technical analysis indicates a bearish trend, further weighing down the score. Additionally, the negative P/E ratio and lack of dividend yield highlight valuation concerns. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The positive revenue growth rate indicates a recovery from previous periods, suggesting the company is effectively expanding its market presence and product offerings.

Strong Equity Position

A strong equity base enhances financial stability, providing the company with resilience against market fluctuations and the ability to invest in growth opportunities.

Improved Profitability

Improved profitability reflects the company's successful turnaround efforts, enhancing its ability to reinvest in business operations and drive long-term growth.

Negative Factors

Cash Flow Challenges

Persistent cash flow challenges can hinder the company's ability to fund operations and growth initiatives, potentially impacting long-term financial health.

Declining Gross Profit Margin

A declining gross profit margin may indicate rising costs or pricing pressures, which could affect the company's ability to maintain profitability over time.

Operational Efficiency

Suboptimal operational efficiency can limit profitability and competitiveness, necessitating strategic adjustments to enhance cost management and productivity.

4C Group AB Business Overview & Revenue Model

Company Description

4C Group AB (4C) is a leading technology and consulting firm based in Sweden, specializing in digital transformation and data-driven solutions across various sectors including finance, healthcare, and retail. The company offers a range of core products and services that include software development, data analytics, cloud services, and strategic consulting, aimed at enhancing operational efficiency and driving innovation for its clients.

How the Company Makes Money

4C generates revenue through a diversified model that includes project-based consulting fees, subscription-based software licenses, and service contracts for ongoing support and maintenance. Key revenue streams consist of custom software development projects, analytics services that help businesses leverage their data, and cloud solutions that provide scalable infrastructure for clients. The company also benefits from strategic partnerships with technology providers and industry leaders, allowing it to expand its market reach and enhance its service offerings, which contribute significantly to its overall earnings.

4C Group AB Financial Statement Overview

Summary

4C Group AB shows signs of financial recovery with improved profitability and revenue growth. The balance sheet is stable with a strong equity position and manageable debt levels. However, cash flow challenges persist, which could impact future operations if not addressed. Overall, the company is on a positive trajectory but needs to focus on improving cash flow management.

Income Statement

4C Group AB has shown a positive revenue growth rate of 4.31% in the TTM, indicating a recovery from previous periods. The gross profit margin is healthy at 35.79%, although it has declined from earlier periods. The net profit margin has improved to 4.55% in the TTM from negative margins in previous years, showing a turnaround in profitability. However, the EBIT and EBITDA margins, while positive, suggest room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is at a manageable level of 0.44, indicating a balanced approach to leveraging. Return on equity has improved to 6.83% in the TTM, reflecting better utilization of equity. The equity ratio stands at 54.68%, showing a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows in the TTM. The free cash flow to net income ratio is high at 1.89, indicating that free cash flow is significantly higher than net income, but the negative values suggest cash flow management issues. The operating cash flow to net income ratio is negative, highlighting challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	353.70M	343.65M	332.10M	331.28M	263.75M	186.83M
Gross Profit	106.14M	124.47M	123.64M	143.20M	122.58M	72.61M
EBITDA	68.30M	56.44M	14.38M	48.37M	65.80M	36.25M
Net Income	-7.42M	-3.47M	-9.34M	26.29M	38.99M	7.35M
Balance Sheet
Total Assets	497.09M	437.58M	386.44M	391.65M	243.90M	158.07M
Cash, Cash Equivalents and Short-Term Investments	19.88M	24.17M	62.23M	146.81M	66.03M	22.68M
Total Debt	132.44M	91.57M	61.59M	70.55M	49.45M	35.39M
Total Liabilities	242.35M	200.27M	159.94M	159.89M	136.30M	91.52M
Stockholders Equity	254.73M	237.31M	226.50M	231.76M	107.59M	66.56M
Cash Flow
Free Cash Flow	-40.24M	-66.83M	-54.82M	-4.00M	55.29M	41.13M
Operating Cash Flow	-8.34M	-25.70M	-17.75M	24.62M	75.49M	59.09M
Investing Cash Flow	-45.85M	-41.17M	-37.45M	-28.54M	-20.55M	-17.63M
Financing Cash Flow	73.97M	26.77M	-29.08M	78.92M	-14.76M	-30.25M

4C Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:4C, the sentiment is Negative. The current price of 9.48 is below the 20-day moving average (MA) of 9.83, below the 50-day MA of 12.66, and below the 200-day MA of 15.52, indicating a bearish trend. The MACD of -0.90 indicates Negative momentum. The RSI at 31.99 is Neutral, neither overbought nor oversold. The STOCH value of 24.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:4C.

4C Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADVE	62 Neutral	€650.99M	27.79	22.29%	0.62%	27.82%	305.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WPAY	51 Neutral	kr158.86M	55.94	―	―	12.09%	―
FREJA	46 Neutral	kr456.98M	―	―	―	19.18%	48.44%
4C	42 Neutral	kr378.92M	18.65	―	―	4.32%	57.79%
CLAV	37 Underperform	kr1.16B	-27.53	―	―	20.43%	61.67%
CYB1	36 Underperform	€3.64M	-2.56	―	―	―	―