4C Group AB (4C) AI Stock Analysis

• Market Cap: kr643.02M
• Dividend Yield: N/A
• Average Volume (3M): 66.57K
• Price to Earnings (P/E): 31.6
• Beta (1Y): 0.36
• Revenue Growth: 27.42%
• EPS Growth: N/A
• Country: SE
• Employees: 200
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Infrastructure
• EPS (TTM): -0.20
• Shares Outstanding: 38,274,998
• 10 Day Avg. Volume: 91,945
• 30 Day Avg. Volume: 66,566
• 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: kr17.00
• Price Target Upside: 1.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: kr17.00 ▲(1.19% Upside)

4C Group AB's overall stock score is driven by its financial recovery and stable balance sheet, but is hindered by cash flow challenges and a high P/E ratio. Technical indicators suggest a lack of momentum, and the absence of a dividend yield further impacts valuation attractiveness.

4C Group AB Business Overview & Revenue Model

Company Description

4C Group AB (4C) is a consultancy firm that specializes in providing strategic management solutions to businesses across various industries. The company is known for its expertise in areas such as digital transformation, efficiency improvement, and business strategy development. 4C leverages its broad industry knowledge to help organizations navigate complex challenges and drive sustainable growth.

How the Company Makes Money

4C Group AB generates revenue primarily through its consultancy services, which include strategic advisory, project management, and digital transformation services. The company charges fees based on the scope and duration of the projects, often employing a combination of hourly rates and fixed project fees. Key revenue streams include management consulting for digital strategy, implementation of operational improvements, and technology integration. 4C may also engage in partnerships with technology providers or other consulting firms to enhance its service offerings, which can lead to additional revenue through collaborative projects.

4C Group AB Financial Statement Overview

Summary

The company shows moderate revenue growth but faces significant profitability challenges, with negative net income margins and declining gross profit margins. The balance sheet is stable with moderate leverage, yet declining ROE and negative cash flows signal financial risks.

Income Statement

The income statement reveals moderate revenue growth with a TTM increase of 3.76% compared to the previous annual report. However, the company is struggling with profitability, as indicated by negative net income margins and declining gross profit margins over time. EBIT and EBITDA margins are low, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.39, suggesting moderate leverage. The equity ratio stands at 56.8%, indicating a stable financial structure. However, the declining return on equity, now negative in the TTM, highlights concerns regarding shareholder returns in the current period.

Cash Flow

Cash flow analysis indicates significant challenges, as the company has a negative free cash flow and a negative operating cash flow to net income ratio. Despite an increase in financing activities, the inability to generate positive free cash flow is a concern for future liquidity and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	374.77M	343.65M	332.10M	331.28M	263.75M	186.83M
Gross Profit	134.14M	124.47M	123.64M	143.20M	122.58M	72.61M
EBITDA	94.32M	56.44M	14.29M	48.37M	65.80M	39.65M
Net Income	17.04M	-3.47M	-9.34M	26.29M	38.99M	7.35M
Balance Sheet
Total Assets	491.55M	437.58M	386.44M	391.65M	243.90M	158.07M
Cash, Cash Equivalents and Short-Term Investments	20.50M	24.17M	62.23M	146.81M	66.03M	22.68M
Total Debt	117.87M	91.57M	61.59M	70.55M	49.45M	35.39M
Total Liabilities	222.75M	200.27M	159.94M	159.89M	136.30M	91.52M
Stockholders Equity	268.79M	237.31M	226.50M	231.76M	107.59M	66.56M
Cash Flow
Free Cash Flow	-66.57M	-66.83M	-54.82M	-4.00M	55.29M	41.13M
Operating Cash Flow	-35.16M	-25.70M	-17.75M	24.62M	75.49M	59.09M
Investing Cash Flow	-40.03M	-41.17M	-37.45M	-28.54M	-20.55M	-17.63M
Financing Cash Flow	90.68M	26.77M	-29.08M	78.92M	-14.76M	-30.25M

4C Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 16.8 is below the 20-day moving average (MA) of 16.92, below the 50-day MA of 17.01, and above the 200-day MA of 14.88, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 23.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:4C.

4C Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4C	56 Neutral	kr643.02M	31.65		―	27.42%	―
Sector *	54 Neutral	$297.86M	3.07	-5.40%	2.71%	5.76%	-75.96%
0G6X	―	kr1.51B	―		―	―	―
7CS	―	€6.36M	―		―	―	―
65R	―	€84.94M	39.55	22.25%	―	―	―
WPAY	58 Neutral	kr148.93M	―		―	17.33%	98.59%
FREJA	46 Neutral	kr270.26M	―		―	23.24%	55.65%