Ework Group AB (EWRK) AI Stock Analysis

• Market Cap: kr1.17B
• Dividend Yield: 7.11%
• Average Volume (3M): 17.84K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.16
• Revenue Growth: -12.29%
• EPS Growth: -18.24%
• Country: SE
• Employees: 300
• Sector: Services
• Sector Strength: N/A
• Industry: Staffing & Employment Services
• EPS (TTM): 0.60
• Shares Outstanding: 17,287,275
• 10 Day Avg. Volume: 20,576
• 30 Day Avg. Volume: 17,839
• PEG Ratio: -0.48
• Price to Book (P/B): 6.64
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 13.50
• 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): 6.8
• Revenue Forecast (FY): kr14.25B

• Rating: 54 Neutral
• Price Target: kr69.00 ▼(-29.23% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven by moderate financial quality (improving leverage and historically decent cash conversion, but recent revenue contraction and thin margins) and weak technicals (price well below key moving averages with negative MACD). Valuation is a key offset, supported by a moderate P/E and a very high dividend yield.

Positive Factors

De-risked leverage

Materially lower leverage and a rebuilt equity base reduce solvency risk and increase financial flexibility. This positions the company to withstand cyclical revenue pressure, maintain supplier and client relationships, and fund working capital or selective investments without immediate refinancing stress.

Consistent cash conversion

Historically steady operating cash flow and strong cash conversion support internal funding of operations, dividends and modest investments. Reliable cash conversion enhances resilience versus cyclical revenue swings and underpins the company's ability to service obligations and manage growth opportunistically.

Asset-light network model

An asset-light intermediary model with a consultant network and framework agreements scales with minimal capex and leverages recurring client contracts. This structural setup benefits from long-term secular demand for flexible specialist talent and supports margin preservation when utilization is stable.

Negative Factors

Revenue contraction

Sustained top-line decline reduces scale advantages and bargaining power with clients and consultants, limiting the network effect. Lower revenue also compresses absolute gross profit and makes it harder to cover fixed operating costs, risking weaker framework penetration and slower recovery.

Structurally thin margins

Very narrow gross and net margins leave minimal buffer for cost inflation, pricing pressure or mix shifts. Even modest increases in consultant pay, compliance costs or client discounts can erase earnings, limiting retained earnings for reinvestment and making profit outcomes highly sensitive to operational swings.

Cash flow volatility & 2025 weakness

Recent sharp deterioration in cash flow reduces predictability for dividends, working capital and strategic initiatives. Volatile FCF increases reliance on external financing in downturns, complicates capital allocation decisions, and raises risk that short-term shocks will force cost cutting or constrain growth investments.

Ework Group AB Business Overview & Revenue Model

Company Description

Ework Group AB (publ) operates as a consultant supplier with focus on IT, telecom, technology, and business development in Sweden, Denmark, Norway, Finland, and Poland. The company was formerly known as eWork Scandinavia AB (publ) and changed its name to Ework Group AB (publ) in May 2016. The company was incorporated in 2000 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Ework Group generates revenue primarily through its staffing and consultancy services, which involve charging clients a fee for connecting them with skilled professionals and managing the administrative aspects of employment. The company earns money through a commission-based model where it takes a percentage of the fees paid by clients to the consultants. Additionally, Ework may also provide consultancy services directly, charging clients for specialized expertise. Significant partnerships with large corporations and public sector clients enhance its revenue streams by establishing long-term relationships that lead to recurring business. Furthermore, the company's digital platform allows for efficient matching between clients and consultants, streamlining operations and enhancing profitability.

Ework Group AB Financial Statement Overview

Summary

Overall financial quality is moderate. The balance sheet has de-risked with materially lower leverage since 2022 and equity has generally built into 2024, while operating cash flow has been consistently positive with decent cash conversion historically. Offsetting this, revenue declined in 2024–2025 and margins are structurally very thin, making earnings sensitive; net income and cash flow also weakened in 2025.

Income Statement

Revenue has weakened recently, with declines in 2024 and 2025, reversing the earlier growth seen in 2021–2023. Profitability is positive but structurally thin (roughly ~2% gross margin and ~0.7–0.9% net margin in 2021–2024), leaving earnings sensitive to even modest cost or volume pressure. Net income also fell meaningfully in 2025 versus 2024, pointing to softer operating leverage despite still-positive operating profit.

Balance Sheet

Leverage has improved materially since 2022: debt relative to equity moved from high levels (about 1.77x in 2022) to below 1.0x in 2023–2024 (about 0.93x to 0.74x), reducing balance-sheet risk. Equity remains positive and has generally built from 2021 into 2024, supporting solvency. Offsetting this, total assets have trended down from the 2022 peak and profitability on equity is elevated but may be partly amplified by the relatively modest equity base.

Cash Flow

Cash generation is generally supportive: operating cash flow is consistently positive and free cash flow has largely tracked net income well (free cash flow was ~74%–95% of net income in 2020–2024). However, free cash flow is volatile—2025 shows a sharp negative growth rate versus the prior year, and operating cash flow also declined in 2025. Overall, cash conversion is decent, but the year-to-year swings reduce predictability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.74B	15.76B	17.25B	16.07B	13.19B
Gross Profit	122.92M	340.27M	365.11M	425.60M	322.41M
EBITDA	186.80M	234.25M	246.18M	212.71M	161.34M
Net Income	76.23M	138.51M	129.03M	139.19M	97.99M
Balance Sheet
Total Assets	3.22B	3.71B	4.14B	4.80B	3.72B
Cash, Cash Equivalents and Short-Term Investments	60.62M	127.45M	131.45M	332.01M	154.50M
Total Debt	211.89M	222.59M	260.81M	461.49M	235.06M
Total Liabilities	2.97B	3.41B	3.86B	4.54B	3.53B
Stockholders Equity	249.80M	301.33M	280.86M	260.85M	198.92M
Cash Flow
Free Cash Flow	122.79M	164.77M	147.08M	81.79M	53.21M
Operating Cash Flow	122.80M	176.13M	164.03M	110.35M	68.30M
Investing Cash Flow	-10.81M	-11.21M	-16.95M	-28.56M	-15.09M
Financing Cash Flow	-178.37M	-169.55M	-345.74M	106.17M	-135.48M

Ework Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 97.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 97.5 is above the 20-day moving average (MA) of 78.55, above the 50-day MA of 88.90, and below the 200-day MA of 100.12, indicating a bearish trend. The MACD of -7.58 indicates Positive momentum. The RSI at 31.97 is Neutral, neither overbought nor oversold. The STOCH value of 49.67 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
DEDI	56 Neutral	kr386.33M	12.28	―	5.95%	-17.43%	-39.61%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
EWRK	54 Neutral	kr1.17B	21.75	―	7.11%	-12.29%	-18.24%
WISE	48 Neutral	kr137.47M	-6.17	-29.57%	―	-20.88%	14.14%
PION.B	40 Underperform	kr240.88M	-831.83	-18.85%	―	-17.32%	36.05%

Ework Group AB Corporate Events

Ework Hit by Weaker Demand and Write-Offs, Cuts Dividend After Profit Slump

Ework Group AB reported a weak 2025, with net sales down 13% to SEK 13.7 billion and order intake falling 12%, reflecting softer demand and fewer professionals on assignment. Profitability was squeezed despite a slightly higher gross margin, as EBIT dropped 35% to SEK 123 million and profit before tax fell 46%, partly due to write-offs of older IT investments and restructuring costs.

In the fourth quarter, trends mirrored the full year, with net sales down 13%, order intake off 14% and EBIT slumping 70%, though underlying earnings excluding non-recurring items were more resilient. The board proposed cutting the dividend to SEK 4 from SEK 7 per share, underscoring the pressure on cash returns to shareholders amid lower earnings and highlighting a more cautious stance in a challenging market for consultant staffing.

The most recent analyst rating on (SE:EWRK) stock is a Hold with a SEK101.00 price target. To see the full list of analyst forecasts on Ework Group AB stock, see the SE:EWRK Stock Forecast page.

Ework launches transformation drive to cut costs and sharpen competitiveness

Ework Group AB has launched a transformation program to streamline its organizational structure and management framework in a bid to sharpen competitiveness and boost operational efficiency. The reorganization includes clearer role definitions, a leaner decision-making process and a revamped Group Management team mandated to build a more customer-centric, scalable and agile organization.

The program is expected to deliver annual cost savings of about SEK 18 million from 2026, while positioning Ework to capture rising demand linked to AI and regulatory compliance. By intensifying sales and business development and focusing on deeper, long-term customer partnerships and end-to-end solutions, the company aims to stabilize earnings in the short term and underpin sustainable, profitable growth over the longer horizon.

The most recent analyst rating on (SE:EWRK) stock is a Hold with a SEK101.00 price target. To see the full list of analyst forecasts on Ework Group AB stock, see the SE:EWRK Stock Forecast page.