B3 Consulting Group AB (B3) AI Stock Analysis

• Market Cap: €358.09M
• Dividend Yield: N/A
• Average Volume (3M): 12.00K
• Price to Earnings (P/E): 132.6
• Beta (1Y): 0.49
• Revenue Growth: 13.21%
• EPS Growth: -97.19%
• Country: SE
• Employees: 988
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.30
• Shares Outstanding: 9,111,648
• 10 Day Avg. Volume: 12,401
• 30 Day Avg. Volume: 12,003
• PEG Ratio: 0.23
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -54.98
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.52
• Revenue Forecast (FY): €1.24B

• Rating: 55 Neutral
• Price Target: kr40.00 ▲(5.54% Upside)

B3 Consulting Group AB's overall stock score reflects strong financial performance with robust revenue growth and profitability. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The attractive dividend yield provides some balance, but the high leverage remains a concern.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory in sales, reflecting the company's ability to expand its market presence and capture new business opportunities.

Operational Efficiency

Improved gross profit margin suggests efficient cost management, which enhances profitability and supports long-term financial health.

Return on Equity

A strong return on equity indicates effective use of shareholder funds, showcasing management's ability to generate returns and sustain investor confidence.

Negative Factors

Increased Leverage

Higher leverage can pose financial risks, potentially straining cash flow and limiting flexibility, which may impact long-term stability if not managed carefully.

Declining Cash Flow

Declining cash flow growth indicates potential liquidity issues, which could affect the company's ability to invest in growth opportunities and meet financial obligations.

Net Profit Margin Decrease

A decrease in net profit margin reflects challenges in controlling expenses or increased competition, potentially impacting overall profitability and competitive positioning.

B3 Consulting Group AB Business Overview & Revenue Model

Company Description

B3 Consulting Group AB (publ) provides IT and management consultancy services in Sweden. The company was formerly known as B3IT Management AB (publ) and changed its name to B3 Consulting Group AB (publ) in May 2018. B3 Consulting Group AB (publ) was founded in 2003 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

B3 Consulting Group AB generates revenue through a diversified model that includes consulting fees, project-based contracts, and ongoing service agreements. The company primarily earns money by billing clients for consulting hours and project deliverables, often structured as fixed-price contracts or hourly rates. Key revenue streams include management consulting services, technology integration projects, and custom software development. B3 also leverages partnerships with technology firms and digital platforms to enhance its service offerings, which can create additional revenue opportunities through joint ventures or collaborative projects. Furthermore, the company's established reputation and expertise in digital transformation enable it to attract a steady stream of clients seeking to modernize their operations, contributing to its overall financial growth.

B3 Consulting Group AB Financial Statement Overview

Summary

B3 Consulting Group AB demonstrates strong revenue growth and profitability, with effective cash flow management. However, the high leverage indicated by the debt-to-equity ratio could be a potential risk. The company needs to maintain its growth trajectory while managing its debt levels to ensure long-term financial stability.

Income Statement

B3 Consulting Group AB shows a strong revenue growth rate of 77.8% in the TTM, indicating robust expansion. The gross profit margin of 25.88% and EBIT margin of 9.49% reflect solid profitability, although the net profit margin is relatively low at 6.53%. The company has demonstrated consistent revenue growth over the years, despite some fluctuations, and maintains healthy EBIT and EBITDA margins.

Balance Sheet

The company has a high debt-to-equity ratio of 1.54 in the TTM, indicating significant leverage, which could pose a risk if not managed properly. However, the return on equity remains strong at 34.89%, showcasing effective use of equity to generate profits. The equity ratio is not explicitly provided, but the balance sheet shows a stable asset base.

Cash Flow

B3 Consulting Group AB has shown a remarkable free cash flow growth rate of 153.64% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is low at 0.037, suggesting potential challenges in converting income into cash flow. However, the free cash flow to net income ratio is high at 0.97, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	1.13B	1.14B	1.15B	921.89M	851.38M
Gross Profit	246.80M	286.00M	180.60M	358.18M	146.28M	115.45M
EBITDA	75.00M	137.60M	113.40M	158.34M	88.06M	70.06M
Net Income	2.70M	83.30M	60.50M	103.30M	45.29M	22.91M
Balance Sheet
Total Assets	841.90M	885.30M	632.60M	622.98M	559.72M	512.20M
Cash, Cash Equivalents and Short-Term Investments	36.50M	77.70M	48.90M	83.39M	54.24M	46.39M
Total Debt	333.80M	303.00M	171.00M	100.03M	104.52M	115.08M
Total Liabilities	585.60M	623.10M	452.40M	395.03M	365.11M	346.31M
Stockholders Equity	212.90M	232.50M	156.70M	194.95M	174.32M	125.99M
Cash Flow
Free Cash Flow	27.90M	-11.70M	62.90M	150.93M	75.50M	67.72M
Operating Cash Flow	27.10M	-7.20M	67.80M	151.71M	77.66M	69.18M
Investing Cash Flow	-56.30M	-18.50M	-2.10M	-4.47M	-7.36M	-3.17M
Financing Cash Flow	-21.40M	61.70M	-100.20M	-118.09M	-62.45M	-47.17M

B3 Consulting Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:B3, the sentiment is Negative. The current price of 37.9 is below the 20-day moving average (MA) of 40.24, below the 50-day MA of 44.09, and below the 200-day MA of 55.01, indicating a bearish trend. The MACD of -1.69 indicates Negative momentum. The RSI at 18.74 is Positive, neither overbought nor oversold. The STOCH value of 5.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:B3.

B3 Consulting Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXS	68 Neutral	€2.10B	28.59	15.90%	1.17%	10.92%	-2.56%
SOF.B	66 Neutral	€1.19B	15.79	27.44%	6.19%	4.00%	-12.08%
PACT	63 Neutral	kr2.88B	18.29	14.35%	2.22%	-4.36%	-31.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CAG	60 Neutral	kr788.44M	16.33	―	3.87%	-4.42%	-6.27%
KNOW	56 Neutral	€3.20B	32.71	2.38%	2.08%	-9.85%	-38.24%
B3	55 Neutral	€358.09M	132.64	1.19%	―	13.21%	-97.19%