Ework Group AB (EWRK) AI Stock Analysis

• Market Cap: kr1.67B
• Dividend Yield: 7.11%
• Average Volume (3M): 17.84K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.17
• Revenue Growth: -12.29%
• EPS Growth: -18.24%
• Country: SE
• Employees: 300
• Sector: Services
• Sector Strength: N/A
• Industry: Staffing & Employment Services
• EPS (TTM): 0.90
• Shares Outstanding: 17,287,275
• 10 Day Avg. Volume: 20,576
• 30 Day Avg. Volume: 17,839
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: kr91.00 ▼(-6.67% Downside)

Ework Group AB's overall stock score is primarily influenced by its financial performance and technical analysis. The company's operational efficiency is overshadowed by challenges in revenue growth and cash flow, while technical indicators suggest bearish momentum. However, a reasonable valuation and high dividend yield provide some support to the stock's attractiveness.

Positive Factors

Cash Generation

Strong cash generation capabilities enhance financial flexibility, allowing the company to invest in growth opportunities and reduce debt.

Efficient Equity Use

High return on equity indicates effective management and the ability to generate profits from shareholders' investments, supporting long-term growth.

Recurring Revenue Streams

Long-term partnerships provide stability and predictability in revenue, reducing volatility and supporting sustained business operations.

Negative Factors

High Leverage

High leverage can increase financial risk and limit the company's ability to invest in growth, potentially impacting long-term stability.

Declining Revenue

Declining revenue trends can hinder the company's ability to grow and compete effectively, necessitating strategic initiatives to reverse the trend.

Tight Margins

Tight margins limit profitability and the ability to absorb cost increases, requiring efficiency improvements to sustain long-term profitability.

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

Ework Group AB demonstrates a mixed financial performance. Strong cash flow generation and efficient use of equity are positive, 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	14.26B	15.76B	17.25B	16.07B	13.19B	12.24B
Gross Profit	282.92M	340.27M	365.11M	425.60M	322.41M	291.33M
EBITDA	203.78M	234.25M	246.18M	212.71M	161.34M	123.41M
Net Income	107.62M	138.51M	129.03M	139.19M	97.99M	69.33M
Balance Sheet
Total Assets	3.08B	3.71B	4.14B	4.80B	3.72B	3.36B
Cash, Cash Equivalents and Short-Term Investments	8.18M	127.45M	131.45M	332.01M	154.50M	239.12M
Total Debt	329.35M	222.59M	260.81M	461.49M	235.06M	254.45M
Total Liabilities	2.84B	3.41B	3.86B	4.54B	3.53B	3.15B
Stockholders Equity	241.96M	301.33M	280.86M	260.85M	198.92M	212.07M
Cash Flow
Free Cash Flow	-39.28M	164.77M	147.08M	81.79M	53.21M	359.60M
Operating Cash Flow	-28.76M	176.13M	164.03M	110.35M	68.30M	378.54M
Investing Cash Flow	-14.63M	-11.21M	-16.95M	-28.56M	-15.09M	-18.95M
Financing Cash Flow	-16.27M	-169.55M	-345.74M	106.17M	-135.48M	-357.12M

Ework Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 97.50
• 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 Neutral. The current price of 97.5 is above the 20-day moving average (MA) of 96.33, above the 50-day MA of 93.17, and below the 200-day MA of 107.63, indicating a neutral trend. The MACD of 0.93 indicates Negative momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 36.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	74 Outperform	kr411.67M	10.27	―	5.95%	-17.43%	-39.61%
EWRK	56 Neutral	kr1.67B	15.50	―	7.11%	-12.29%	-18.24%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PION.B	47 Neutral	kr254.37M	-9.25	-18.85%	―	-17.32%	36.05%
WISE	43 Neutral	kr94.97M	-5.03	-29.57%	―	-20.88%	14.14%

Ework Group AB Corporate Events

Ework Group AB Appoints Nomination Committee for 2026 AGM

Ework Group AB has appointed its Nomination Committee for the 2026 Annual General Meeting, with members including Magnus Berglind, Staffan Salén, and Katarina Salén. The announcement reflects the company’s ongoing governance processes and provides stakeholders with information on how to engage with the committee. This move is part of Ework’s commitment to maintaining transparent and effective corporate governance as it continues to expand its consulting and workforce solutions across Northern Europe.

The most recent analyst rating on (SE:EWRK) stock is a Hold with a SEK102.00 price target. To see the full list of analyst forecasts on Ework Group AB stock, see the SE:EWRK Stock Forecast page.