Dedicare AB (DEDI) AI Stock Analysis

• Market Cap: kr430.32M
• Dividend Yield: 5.87%
• Average Volume (3M): 20.96K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.05
• Revenue Growth: -17.43%
• EPS Growth: -39.61%
• Country: SE
• Employees: 904
• Sector: Healthcare
• Sector Strength: 45
• Industry: Staffing & Employment Services
• EPS (TTM): 1.00
• Shares Outstanding: 7,550,735
• 10 Day Avg. Volume: 24,037
• 30 Day Avg. Volume: 20,963
• PEG Ratio: -0.20
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 6.94
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: kr51.00 ▲(19.72% Upside)

Dedicare AB's strong financial performance and attractive valuation are the most significant factors contributing to its score. The technical analysis suggests a neutral trend, which slightly tempers the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Generation

Strong cash generation indicates effective operational management, providing flexibility for reinvestment and debt servicing, supporting long-term growth.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, reducing risk and providing a solid foundation for future expansion.

Operational Efficiency

Stable gross margins reflect effective cost control, which supports profitability and competitiveness in the staffing industry over the long term.

Negative Factors

Revenue Decline

A decline in revenue growth could indicate challenges in market demand or competitive pressures, potentially impacting future earnings and market position.

Profitability Challenges

Decreased net profit margins suggest difficulties in maintaining profitability, which could affect long-term financial performance if not addressed.

Earnings Pressure

Pressure on net income indicates potential operational or market challenges, which may require strategic adjustments to sustain growth.

Dedicare AB Business Overview & Revenue Model

Company Description

Dedicare AB (publ) operates as a staffing company in the healthcare industry primarily in Sweden, Norway, Finland, and Denmark. The company hires and recruits doctors, nurses, social workers, and managers, as well as other staff in health and social work. It provides individual temporary staffing, as well as department, unit, or operations team staffing services. The company was founded in 1996 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Dedicare AB generates revenue through its staffing services, which include temporary and permanent placement of healthcare professionals. The company charges its clients a fee based on the hourly rates of the personnel provided, along with additional charges for recruitment and administrative services. Key revenue streams include contracts with hospitals, nursing homes, and private care providers, where they supply staff on an as-needed basis. Dedicare may also engage in partnerships with healthcare institutions to secure long-term contracts, thereby ensuring a steady flow of income. Factors contributing to its earnings include the increasing demand for healthcare services, regulatory changes affecting staffing requirements, and the company's reputation for delivering high-quality professionals in a competitive market.

Dedicare AB Financial Statement Overview

Summary

Dedicare AB displays a strong financial profile with robust cash flow, stable growth, and a secure balance sheet. Despite recent revenue and net income pressures, the company's solid margins and low leverage position it well for future resilience.

Income Statement

The company has shown consistent revenue growth over the years, although there was a decline in 2024. Gross profit margins have been relatively stable, indicating efficient cost management. Net profit margin decreased in 2024, reflecting some challenges in maintaining profitability levels. The EBIT and EBITDA margins have been solid, pointing to strong operational performance.

Balance Sheet

Dedicare AB maintains a strong equity position with a healthy equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting prudent financial management and low leverage risk. Return on equity remains attractive, showcasing effective use of shareholder funds.

Cash Flow

Operating cash flow remains robust and consistently exceeds net income, demonstrating strong cash generation. Free cash flow growth has been positive, although it decreased in the latest period. The ratios of operating and free cash flow to net income indicate efficient cash management relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.55B	1.72B	1.97B	1.77B	1.25B	885.20M
Gross Profit	237.30M	444.92M	351.50M	529.42M	337.40M	125.52M
EBITDA	69.70M	89.34M	171.42M	154.37M	102.31M	61.38M
Net Income	37.30M	47.07M	110.40M	101.30M	65.56M	36.06M
Balance Sheet
Total Assets	568.00M	628.76M	727.32M	742.68M	497.86M	384.61M
Cash, Cash Equivalents and Short-Term Investments	95.00M	115.26M	187.15M	142.80M	132.43M	100.29M
Total Debt	22.30M	38.05M	87.96M	116.01M	33.55M	40.92M
Total Liabilities	285.40M	329.46M	417.39M	480.13M	319.37M	249.19M
Stockholders Equity	282.60M	299.30M	309.93M	262.56M	178.49M	135.42M
Cash Flow
Free Cash Flow	63.00M	78.03M	140.85M	99.97M	67.30M	37.54M
Operating Cash Flow	64.60M	81.28M	145.40M	105.34M	69.59M	40.10M
Investing Cash Flow	-37.80M	-39.47M	-9.67M	-68.61M	-2.29M	-26.47M
Financing Cash Flow	-57.90M	-88.19M	-81.83M	-30.07M	-36.74M	25.80M

Dedicare AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:DEDI, the sentiment is Negative. The current price of 42.6 is below the 20-day moving average (MA) of 43.83, below the 50-day MA of 44.83, and below the 200-day MA of 45.13, indicating a bearish trend. The MACD of -0.61 indicates Positive momentum. The RSI at 40.68 is Neutral, neither overbought nor oversold. The STOCH value of 16.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:DEDI.

Dedicare AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEDI	74 Outperform	kr430.32M	10.73	―	5.87%	-17.43%	-39.61%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HEGR	46 Neutral	€23.41M	―	-8.40%	―	-11.42%	-116.40%
WISE	45 Neutral	€98.67M	-4.28	-29.57%	―	-20.88%	14.14%
PION.B	44 Neutral	€269.78M	-5.46	-18.85%	―	-17.32%	36.05%