Hedera Group AB (HEGR) AI Stock Analysis

• Market Cap: €23.41M
• Dividend Yield: N/A
• Average Volume (3M): 19.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -11.42%
• EPS Growth: -116.40%
• Country: SE
• Employees: 51
• Sector: Services
• Sector Strength: N/A
• Industry: Staffing & Employment Services
• EPS (TTM): -0.15
• Shares Outstanding: 34,169,620
• 10 Day Avg. Volume: 17,457
• 30 Day Avg. Volume: 19,115
• PEG Ratio: 0.17
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 115.93
• 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: 46 Neutral
• Price Target: kr0.50 ▼(-16.67% Downside)

Hedera Group AB's overall stock score is primarily impacted by its weak financial performance, with declining revenue and profitability in 2024. Technical analysis indicates a bearish trend with oversold conditions, while valuation metrics are unattractive due to negative earnings and lack of dividend yield. These factors collectively suggest significant challenges for the company, with potential risks outweighing immediate opportunities.

Positive Factors

Business Model Strength

Hedera's focus on decentralized networks and DLT offers a robust platform for dApps, positioning it well in the growing blockchain sector.

Revenue Streams

Diverse revenue streams, including transaction fees and enterprise partnerships, provide a stable income base and growth potential as blockchain adoption increases.

Industry Position

Hedera's role in facilitating blockchain adoption across industries like finance and supply chain enhances its market position and long-term relevance.

Negative Factors

Revenue Decline

The decline in revenue and profitability indicates challenges in maintaining growth, which could impact long-term financial health and market competitiveness.

Cash Flow Challenges

Inconsistent cash flow generation poses risks to operational stability and limits the company's ability to invest in growth opportunities.

Profitability Issues

Negative profit margins highlight operational inefficiencies and could hinder the company's ability to sustain competitive advantages.

Hedera Group AB Business Overview & Revenue Model

Company Description

Hedera Group AB (publ), together with its subsidiaries, engages in the staffing and recruitment of doctors and nurses to primary cares, municipalities, and hospitals in Sweden. It offers consulting services. The company is based in Stockholm, Sweden. Hedera Group AB (publ) is a subsidiary of Bertil Haglund med bolag.

How the Company Makes Money

Hedera Group AB generates revenue through multiple streams, primarily from transaction fees associated with the use of its network for dApps and token management. Each transaction on the Hedera network incurs a nominal fee, which contributes directly to the company's earnings. Additionally, Hedera may engage in partnerships with enterprises and developers, providing consulting services and technical support for implementing blockchain solutions. The company also explores revenue through strategic alliances with other technology firms and participation in joint ventures that leverage its platform's capabilities. By expanding its ecosystem and fostering a community of developers, Hedera aims to increase transaction volumes and, consequently, its revenue.

Hedera Group AB Financial Statement Overview

Summary

Hedera Group AB shows a mixed financial performance with declining revenue and profitability in 2024. The balance sheet reflects moderate leverage but potential risks in equity returns. Cash flow metrics highlight challenges in cash generation and sustainability. Overall, the company faces operational and financial stability challenges that need addressing for future growth.

Income Statement

The company has experienced fluctuating revenue growth with a significant decline in 2024. Gross profit margins have been inconsistent, with a notable drop in 2024. Net profit margin turned negative in 2024, indicating profitability challenges. EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is moderate, suggesting a balanced approach to leverage. However, the equity ratio has shown slight deterioration over time. Return on equity has been inconsistent, with a negative figure in 2024 due to net losses, indicating potential risk in generating returns for shareholders.

Cash Flow

The company has faced challenges in maintaining positive free cash flow growth, with a significant decline in 2024. The operating cash flow to net income ratio has been volatile, reflecting unstable cash generation relative to earnings. Free cash flow to net income ratio also indicates inconsistency in translating earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	513.40M	543.31M	678.28M	453.91M	246.97M	218.00M
Gross Profit	19.40M	18.40M	34.76M	122.00M	52.36M	42.43M
EBITDA	7.70M	6.18M	21.20M	19.33M	7.03M	2.45M
Net Income	-1.80M	-2.52M	9.46M	13.57M	2.60M	-1.96M
Balance Sheet
Total Assets	231.20M	232.99M	261.32M	232.66M	147.00M	121.44M
Cash, Cash Equivalents and Short-Term Investments	6.90M	8.37M	15.06M	8.65M	5.79M	4.35M
Total Debt	239.00M	42.67M	41.80M	40.38M	38.97M	22.99M
Total Liabilities	113.20M	132.45M	154.91M	135.71M	90.41M	71.59M
Stockholders Equity	118.00M	100.54M	106.41M	96.95M	56.59M	49.85M
Cash Flow
Free Cash Flow	7.40M	473.00K	12.17M	8.14M	-1.55M	6.58M
Operating Cash Flow	7.59M	1.42M	12.80M	10.09M	1.78M	8.50M
Investing Cash Flow	-1.45M	-951.00K	-2.65M	-22.20M	-10.51M	-1.92M
Financing Cash Flow	-10.96M	-7.16M	-3.74M	14.97M	10.17M	-7.53M

Hedera Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HEGR, the sentiment is Negative. The current price of 0.6 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.76, and below the 200-day MA of 1.57, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 30.02 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:HEGR.

Hedera Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEDI	74 Outperform	kr430.32M	10.73	―	5.87%	-17.43%	-39.61%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
HEGR	46 Neutral	€23.41M	―	-8.40%	―	-11.42%	-116.40%
WISE	45 Neutral	€98.67M	-4.28	-29.57%	―	-20.88%	14.14%
PION.B	44 Neutral	€269.78M	-5.46	-18.85%	―	-17.32%	36.05%