Ework Group AB (EWRK) AI Stock Analysis

• Market Cap: kr2.45B
• Dividend Yield: 6.27%
• Average Volume (3M): 11.08K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.34
• 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: 6,632
• 30 Day Avg. Volume: 11,080
• 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: kr122.00
• Price Target Upside: 9.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: kr122.00 ▲(9.12% Upside)

Ework Group AB's stock score is driven by a balanced financial performance with strong cash flow and equity efficiency, offset by revenue decline and high leverage. Technical indicators suggest neutral momentum, while valuation is supported by a solid dividend yield.

Positive Factors

Cash Generation

Strong cash generation capabilities indicate Ework Group AB's ability to fund operations and investments without relying heavily on external financing, enhancing long-term financial stability.

Equity Efficiency

High return on equity reflects effective management and the company's ability to generate profits from shareholders' investments, supporting sustainable growth.

Operational Efficiency

Stable EBIT and EBITDA margins indicate that Ework Group AB maintains operational efficiency, which is crucial for sustaining profitability in a competitive industry.

Negative Factors

Revenue Decline

Declining revenue can hinder growth prospects and affect the company's ability to invest in new opportunities, posing a challenge to long-term competitiveness.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to weather economic downturns or invest in growth.

Tight Margins

Tight margins limit profitability and can restrict the company's ability to reinvest in business development, necessitating a focus on cost management and revenue enhancement.

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 a mixed financial performance. Strong cash flow generation and efficient use of equity are positives, but challenges include declining revenue and high leverage. Improving revenue growth and reducing reliance on debt are crucial for financial stability.

Income Statement

Ework Group AB shows a mixed performance in its income statement. The company has a low gross profit margin of 2.28% and a net profit margin of 0.81% for TTM, indicating tight margins typical in the staffing industry. Revenue has declined by 3.65% in the TTM period, which is a concern. However, the EBIT and EBITDA margins are relatively stable, suggesting operational efficiency. The company needs to focus on revenue growth to improve its financial health.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.16 in the TTM period, indicating significant leverage, which could pose a risk if not managed properly. The return on equity is strong at 42.75%, showing efficient use of equity to generate profits. However, the equity ratio is low, suggesting reliance on debt financing. The company should aim to strengthen its equity base to reduce financial risk.

Cash Flow

Cash flow analysis shows a robust free cash flow growth rate of 105.46% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is low at 0.08, suggesting that cash flow from operations is not fully covering net income. However, the free cash flow to net income ratio is high at 0.94, reflecting efficient cash management. The company should focus on improving operating cash flow to enhance financial stability.

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: 111.80
• 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 111.8 is below the 20-day moving average (MA) of 112.36, above the 50-day MA of 109.10, and below the 200-day MA of 123.35, indicating a neutral trend. The MACD of 2.98 indicates Negative momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 56.01 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
EWRK	69 Neutral	kr2.45B	20.87		6.27%	-13.04%	-7.85%
Sector *	56 Neutral	$13.39B	17.94	10.03%	0.93%	7.13%	-12.93%
5CL	―	€10.38M	―	-31.59%	―	―	―
PXO	―	€25.29M	―	-32.63%	―	―	―
NGS	―	kr81.63M	―		―	―	―
DEDI	75 Outperform	kr436.06M	11.66		5.61%	-16.43%	-57.84%
NJOB	―	kr51.84M	4.94		15.43%	―	―

Ework Group AB Corporate Events

Ework Group Expands into Germany to Strengthen European Market Presence

Ework Group is expanding its operations into Germany as part of its long-term growth strategy to enhance its European presence. This move aims to meet the increasing demand for flexible talent solutions, particularly in the banking, manufacturing, and automotive industries, and to provide more localized support to clients. The expansion into Germany, one of Europe’s largest consulting markets, is expected to deepen client relationships and unlock new opportunities, reinforcing Ework Group’s position as a key player in the European talent solutions market.

The most recent analyst rating on (SE:EWRK) stock is a Hold with a SEK116.00 price target. To see the full list of analyst forecasts on Ework Group AB stock, see the SE:EWRK Stock Forecast page.

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.