DistIT AB (DIST) AI Stock Analysis

• Market Cap: kr21.06M
• Dividend Yield: N/A
• Average Volume (3M): 124.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -27.14%
• EPS Growth: 89.21%
• Country: SE
• Employees: 156
• Sector: Technology
• Sector Strength: 85
• Industry: Technology Distributors
• EPS (TTM): -0.92
• Shares Outstanding: 84,242,800
• 10 Day Avg. Volume: 166,712
• 30 Day Avg. Volume: 124,198
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr0.50
• Price Target Upside: 117.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: kr0.00 ▼(-100.00% Downside)

DistIT AB's overall stock score is primarily impacted by its challenging financial performance, with declining revenue and high leverage posing significant risks. Technical analysis further indicates a bearish trend, while valuation metrics are weak due to negative earnings. The company needs to address these issues to improve its stock attractiveness.

Positive Factors

Cash Flow Generation

Strong free cash flow growth indicates improved cash generation, providing the company with more resources to invest in growth opportunities or reduce debt, enhancing long-term financial stability.

Operational Efficiency

Effective cash management through a healthy free cash flow to net income ratio suggests that the company is efficiently converting its earnings into cash, which is crucial for sustaining operations and funding future growth.

Product Offering

A diverse product offering enables DistIT AB to cater to various market needs, reducing dependency on a single product line and enhancing its ability to capture market share across different segments.

Negative Factors

Revenue Decline

Declining revenue indicates potential loss of market share or demand, which can impact long-term growth prospects and necessitates strategic adjustments to regain competitive positioning.

High Leverage

High leverage can strain the company's financial flexibility and increase risk, especially in downturns, as it may limit the ability to invest in growth or weather economic challenges.

Profitability Challenges

Negative profitability margins suggest operational inefficiencies and the need for cost management or revenue enhancement strategies to achieve sustainable profitability and shareholder value.

DistIT AB Business Overview & Revenue Model

Company Description

DistIT AB is a leading distributor within the information technology and consumer electronics sectors, offering a broad range of products such as computer accessories, network solutions, and multimedia products. Headquartered in Sweden, the company operates across the Nordic region, providing supply chain services to retailers, resellers, and system integrators. DistIT AB plays a significant role in bridging the gap between manufacturers and the end market, ensuring efficient distribution and availability of top-tier technology products.

How the Company Makes Money

DistIT AB generates revenue primarily through the sale and distribution of IT and consumer electronics products. The company's key revenue streams include wholesale distribution to retailers and resellers, where it earns margins on the products sold. DistIT also benefits from strategic partnerships with manufacturers, allowing it to offer a wide range of products and solutions. Additionally, the company may engage in value-added services such as logistics, inventory management, and marketing support, which can provide additional revenue opportunities. These activities contribute to its earnings by enhancing operational efficiency and expanding market reach.

DistIT AB Financial Statement Overview

Summary

DistIT AB faces significant financial challenges, with declining revenues and negative profitability margins. The company's high debt-to-equity ratio and negative return on equity indicate financial leverage risks. Although operating cash flow remains positive, it is declining, signaling liquidity issues.

Income Statement

The company shows declining revenue with a negative revenue growth rate when comparing TTM to the previous annual report. The gross profit margin is decreasing, reflecting higher costs or lower sales efficiency. EBIT and EBITDA margins are significantly negative, indicating operational challenges. Net profit margin is also negative, highlighting profitability issues.

Balance Sheet

The debt-to-equity ratio is relatively high, indicating higher financial leverage and potential risk if earnings do not improve. Return on equity is negative due to sustained net losses. The equity ratio is declining, showing reduced shareholder equity as a percentage of total assets, which may be concerning for long-term sustainability.

Cash Flow

Operating cash flow is positive but declining, suggesting some liquidity challenges. Free cash flow has improved in the TTM period but remains low compared to prior periods. The free cash flow to net income ratio is low due to negative net income, indicating limited cash generation relative to profitability losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.61B	2.11B	2.56B	2.52B	2.35B
Gross Profit	270.70M	329.40M	375.62M	534.60M	557.94M	511.13M
EBITDA	-55.50M	-65.60M	-38.60M	47.97M	104.54M	111.69M
Net Income	-51.70M	-39.40M	-418.55M	-16.51M	43.46M	56.12M
Balance Sheet
Total Assets	659.00M	961.70M	1.18B	1.68B	1.75B	1.15B
Cash, Cash Equivalents and Short-Term Investments	25.40M	48.00M	30.20M	46.21M	35.64M	53.75M
Total Debt	280.80M	324.50M	392.04M	408.77M	416.33M	213.21M
Total Liabilities	579.50M	773.10M	951.84M	1.11B	1.15B	698.00M
Stockholders Equity	79.50M	188.60M	230.76M	569.40M	598.52M	442.18M
Cash Flow
Free Cash Flow	26.00M	38.50M	-2.38M	27.68M	-115.50M	70.51M
Operating Cash Flow	27.80M	41.60M	55.91M	59.36M	-97.06M	90.61M
Investing Cash Flow	28.00M	15.20M	-57.94M	-36.76M	-81.38M	-10.57M
Financing Cash Flow	-60.60M	-40.90M	-11.77M	-16.57M	157.30M	-33.00M

DistIT AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.23
• 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:DIST, the sentiment is Neutral. The current price of 0.23 is above the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.26, and below the 200-day MA of 0.99, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.13 is Neutral, neither overbought nor oversold. The STOCH value of 41.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:DIST.

DistIT AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$301.28M	3.19	-13.34%	2.80%	5.73%	-77.39%
DIST	47 Neutral	kr21.06M	―		―	-27.14%	89.21%
KM8	―	€4.46M	16.91	-16.05%	―	―	―
86M	―	€14.65M	―	-23.90%	―	―	―
4HE	―	€50.99M	―	-2.12%	―	―	―
FIRE	67 Neutral	kr1.06B	24.36		3.13%	-4.33%	-17.01%
MOBA	―	kr127.02M	―		―	―	―