Hemnet Group AB (HEM) AI Stock Analysis

• Market Cap: kr16.52B
• Dividend Yield: 0.99%
• Average Volume (3M): 260.17K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.10
• Revenue Growth: 18.18%
• EPS Growth: 19.59%
• Country: SE
• Employees: 156
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 1.40
• Shares Outstanding: 90,508,990
• 10 Day Avg. Volume: 232,722
• 30 Day Avg. Volume: 260,167
• PEG Ratio: 2.15
• Price to Book (P/B): 25.84
• Price to Sales (P/S): 23.14
• P/FCF Ratio: 59.38
• 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: kr241.36
• Price Target Upside: 41.23% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: kr179.00 ▲(4.74% Upside)

Hemnet Group AB's strong financial performance is the primary driver of its score, supported by robust profitability and cash flow metrics. However, the technical analysis indicates weak momentum, and the valuation suggests the stock may be overvalued, which tempers the overall score.

Positive Factors

Strong Cash Flow Management

Efficient cash flow management ensures the company can reinvest in growth opportunities and maintain financial flexibility, supporting long-term stability.

Healthy Balance Sheet

A healthy balance sheet with manageable leverage enhances the company's ability to withstand economic fluctuations and invest in strategic initiatives.

Strong Profitability

High profitability margins indicate effective cost management and pricing power, which can sustain competitive advantages and shareholder returns.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can signal market saturation or increased competition, potentially impacting future earnings and market position.

Weak Stock Momentum

Weak momentum may reflect broader market concerns or internal challenges, possibly affecting investor confidence and capital raising ability.

Overvaluation Concerns

Perceived overvaluation can limit stock price appreciation and attract scrutiny, potentially leading to increased volatility and pressure on management.

Hemnet Group AB Business Overview & Revenue Model

Company Description

Hemnet Group AB (publ) operates a property platform. Its platform gathers various property buyers, sellers, and real estate agents in one place. The company was founded in 1998 and is based in Stockholm, Sweden.

How the Company Makes Money

Hemnet Group AB generates revenue primarily through advertising and subscription fees. The company charges real estate agents and property developers for premium listings and advertising space on its platform, allowing them to showcase properties to a broader audience. Additionally, Hemnet offers subscription services for real estate agencies, which provide enhanced visibility and marketing tools. The company also benefits from partnerships with various stakeholders in the real estate market, including financial institutions and property developers, which can contribute to additional revenue opportunities through co-marketing initiatives and data sharing agreements.

Hemnet Group AB Financial Statement Overview

Summary

Hemnet Group AB exhibits strong financial performance with impressive growth in revenue and profitability, supported by efficient cost management and robust cash flow generation. The balance sheet remains stable, although rising debt levels warrant careful monitoring.

Income Statement

Hemnet Group AB shows strong revenue growth with a TTM increase of 5.34%, supported by robust gross and net profit margins of 100.81% and 35.41%, respectively. The EBIT and EBITDA margins are also healthy at 45.99% and 51.82%, indicating efficient cost management and profitability. The consistent improvement in revenue and margins over the years highlights a positive growth trajectory.

Balance Sheet

The company's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.50 and a strong return on equity of 45.30%. The equity ratio stands at 51.14%, suggesting a solid capital structure. However, the increase in total debt over the years could pose a potential risk if not managed carefully.

Cash Flow

Hemnet Group AB demonstrates strong cash flow management with a free cash flow growth rate of 4.79% TTM and a high operating cash flow to net income ratio of 1.83. The free cash flow to net income ratio of 0.96 indicates efficient conversion of earnings into cash. The consistent growth in free cash flow over the years supports the company's liquidity and operational stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.54B	1.39B	1.00B	889.20M	728.10M	544.08M
Gross Profit	1.46B	1.41B	848.10M	899.20M	732.70M	547.98M
EBITDA	790.10M	723.20M	521.10M	442.40M	296.40M	182.86M
Net Income	539.20M	338.70M	338.70M	293.80M	156.50M	67.70M
Balance Sheet
Total Assets	2.27B	2.19B	2.16B	2.09B	2.13B	2.37B
Cash, Cash Equivalents and Short-Term Investments	195.60M	111.70M	102.60M	100.40M	94.50M	271.62M
Total Debt	622.50M	503.60M	540.70M	328.50M	283.10M	686.74M
Total Liabilities	1.14B	945.20M	896.40M	661.90M	616.60M	1.02B
Stockholders Equity	1.13B	1.25B	1.26B	1.43B	1.52B	1.35B
Cash Flow
Free Cash Flow	644.30M	543.40M	357.10M	340.50M	228.00M	119.96M
Operating Cash Flow	663.40M	566.90M	395.90M	356.00M	235.00M	126.97M
Investing Cash Flow	-25.30M	-23.50M	-38.80M	-15.50M	17.70M	-6.99M
Financing Cash Flow	-587.60M	-534.30M	-354.90M	-334.60M	-405.30M	-92.29M

Hemnet Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 170.90
• 50DMA: Negative
• 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:HEM, the sentiment is Negative. The current price of 170.9 is below the 20-day moving average (MA) of 172.04, below the 50-day MA of 190.55, and below the 200-day MA of 267.15, indicating a bearish trend. The MACD of -4.77 indicates Negative momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 20.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:HEM.

Hemnet Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENRO	72 Outperform	kr284.29M	4.14	23.97%	―	-0.21%	33.33%
ACAST	63 Neutral	kr6.30B	-161.52	-3.84%	―	26.82%	76.68%
HEM	61 Neutral	kr16.52B	30.17	46.90%	0.99%	18.18%	19.59%
TRAD	61 Neutral	kr386.85M	23.95	4.37%	―	6.67%	-7.93%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IVSO	57 Neutral	kr12.21B	57.61	21.88%	0.87%	5.69%	4.82%
CINT	47 Neutral	kr993.93M	19.84	1.00%	―	-21.66%	―

Hemnet Group AB Corporate Events

Hemnet Enhances Early Home Sales Process with New Initiatives

Hemnet Group AB has launched two strategic initiatives to enhance its role in the early stages of the home sales process. The ‘Sell first, pay later’ model aims to lower the threshold for early home publication, while new strategic partnerships with real estate agents are set to improve market transparency and efficiency. These initiatives respond to evolving market dynamics and consumer behaviors, aiming to provide better value for sellers, buyers, and agents.

Hemnet Reports Strong ARPL Growth Amid Challenging Market Conditions

In its Q3 2025 interim report, Hemnet Group AB reported a 21% increase in Average Revenue Per Published Listing (ARPL) despite a challenging property market, though net sales and EBITDA saw slight declines. The company is implementing strategic initiatives, including a ‘pay only upon sale’ model and new partnerships, to strengthen its market position and enhance service offerings, aiming to increase efficiency and transparency in the housing market.

Hemnet Group AB to Announce Q3 2025 Results

Hemnet Group AB is set to announce its Q3 2025 results on October 23rd, with a presentation led by CEO Jonas Gustafsson and CFO Anders Örnulf. The presentation, which will be conducted in English, includes a Q&A session and will be accessible via a live stream and teleconference. This announcement highlights Hemnet’s ongoing commitment to transparency and stakeholder engagement, reinforcing its position as a leader in the Swedish property market.