Ework Group AB (EWRK) AI Stock Analysis

• Market Cap: kr1.84B
• Dividend Yield: 6.59%
• Average Volume (3M): 13.60K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.35
• Revenue Growth: -13.04%
• EPS Growth: -7.85%
• Country: SE
• Employees: 300
• Sector: Services
• Sector Strength: N/A
• Industry: Staffing & Employment Services
• EPS (TTM): 1.90
• Shares Outstanding: 17,287,275
• 10 Day Avg. Volume: 18,137
• 30 Day Avg. Volume: 13,604
• PEG Ratio: 2.42
• Price to Book (P/B): 8.22
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 15.02
• 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: kr116.00
• Price Target Upside: 9.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: kr116.00 ▲(9.23% Upside)

Ework Group AB's overall stock score is driven by a balanced mix of financial performance and valuation. Strong cash flow and a high dividend yield are key strengths, while declining revenue and high leverage present risks. Technical indicators suggest neutral momentum, warranting cautious optimism.

Ework Group AB Business Overview & Revenue Model

Company Description

Ework Group AB (EWRK) is a leading consulting firm based in Sweden that operates within the IT, telecom, technology, and business development sectors. The company specializes in providing a full range of consulting services, including the sourcing and management of consultants for companies in need of flexible workforce solutions. Ework Group AB leverages its extensive network of consultants to deliver tailored solutions that meet the specific needs of its clients.

How the Company Makes Money

Ework Group AB makes money primarily by acting as an intermediary between businesses seeking specialized skills and independent consultants or consulting firms offering those skills. The company generates revenue through service fees charged to clients for successful placement and management of consultants. Ework Group AB also benefits from long-term contracts with major corporations, which provide a steady stream of income. Additionally, the company may engage in strategic partnerships that enhance its service offerings and expand its client base, thereby contributing to its revenue growth.

Ework Group AB Financial Statement Overview

Summary

Ework Group AB demonstrates stable operational efficiency with consistent EBIT and EBITDA margins, despite a decrease in revenue. The company's balance sheet shows high leverage, which could pose risks, but profitability metrics like ROE remain strong. Cash flow ratios indicate effective cash management, although free cash flow growth has been under pressure. Overall, the company maintains financial stability but faces challenges in revenue growth and leverage management.

Income Statement

The company's gross profit margin has shown fluctuations, with recent data indicating a decrease to 1.97% TTM from 2.16% in the previous year. Net profit margin similarly decreased to 0.79% TTM from 0.88%. Revenue has shown a declining trend, with a 4.54% decrease from 2023 to 2024, but a slight recovery in TTM. EBIT and EBITDA margins remain relatively stable, indicating consistent operational efficiency despite revenue challenges.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 0.73 TTM, indicating significant leverage. However, the return on equity has improved to 37.89% TTM, demonstrating effective use of shareholder funds. The equity ratio decreased to 9.11% TTM, suggesting a lower proportion of equity financing in the asset structure, which could pose a risk in volatile markets.

Cash Flow

The operating cash flow to net income ratio is above 1, indicating strong cash conversion. However, free cash flow growth has declined, reflecting challenges in maintaining free cash flow levels. Free cash flow to net income ratio has increased to 0.93, showing efficient cash generation relative to profit.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.50B	15.76B	17.25B	16.07B	13.19B	12.24B
Gross Profit	330.90M	340.27M	365.11M	425.60M	322.41M	291.33M
EBITDA	215.68M	234.25M	235.88M	212.71M	163.07M	123.41M
Net Income	117.59M	138.51M	129.03M	139.19M	97.99M	69.33M
Balance Sheet
Total Assets	3.35B	3.71B	4.14B	4.80B	3.72B	3.36B
Cash, Cash Equivalents and Short-Term Investments	29.52M	127.45M	131.45M	332.01M	154.50M	239.12M
Total Debt	264.03M	222.59M	260.81M	461.49M	235.06M	254.45M
Total Liabilities	3.12B	3.41B	3.86B	4.54B	3.53B	3.15B
Stockholders Equity	227.15M	301.33M	280.86M	260.85M	198.92M	212.07M
Cash Flow
Free Cash Flow	227.94M	164.77M	147.08M	81.79M	53.21M	359.60M
Operating Cash Flow	242.13M	176.13M	164.03M	110.35M	68.30M	378.54M
Investing Cash Flow	-8.10M	-11.21M	-16.95M	-28.56M	-15.09M	-18.95M
Financing Cash Flow	-216.06M	-169.55M	-345.74M	106.17M	-135.48M	-357.12M

Ework Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 106.20
• 50DMA: Positive
• 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:EWRK, the sentiment is Negative. The current price of 106.2 is below the 20-day moving average (MA) of 107.64, above the 50-day MA of 105.64, and below the 200-day MA of 125.11, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 46.30 is Neutral, neither overbought nor oversold. The STOCH value of 37.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:EWRK.

Ework Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRE2	76 Outperform	kr3.12B	28.06		2.74%	9.77%	18.38%
BYGGP	68 Neutral	kr1.06B	14.76		2.11%	-1.93%	126.55%
EWRK	66 Neutral	kr1.84B	15.61		6.59%	-13.04%	-7.85%
FG	64 Neutral	kr1.81B	189.47		5.05%	0.86%	-95.12%
Sector *	57 Neutral	$1.60B	-3.70	3.73%	4.29%	5.38%	-37.86%
SF	40 Neutral	kr2.51B	―		―	-9.57%	-6078.38%

Ework Group AB Corporate Events

Ework Group CEO Karin Schreil to Depart at Year-End

Ework Group’s President and CEO, Karin Schreil, will leave her position at the end of the year, prompting the Board to begin searching for a new CEO. Under Schreil’s leadership since November 2021, the company has seen significant financial growth and professional development, positioning Ework as one of Europe’s largest IT and technology consultant suppliers. Her departure marks the end of an important transformative phase, with a solid foundation laid for future success.