HMS Networks AB (HMS) AI Stock Analysis

• Market Cap: $25.81B
• Dividend Yield: N/A
• Average Volume (3M): 28.58K
• Price to Earnings (P/E): 58.9
• Beta (1Y): 1.19
• Revenue Growth: 13.97%
• EPS Growth: 20.46%
• Country: SE
• Employees: 1,100
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 3.72
• Shares Outstanding: 50,318,867
• 10 Day Avg. Volume: 37,917
• 30 Day Avg. Volume: 28,579
• 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: 0.91
• Enterprise Value/Revenue: 7.03
• Enterprise Value/Gross Profit: 11.21
• Enterprise Value/Ebitda: 32.90
• 1Y Price Target: $530.10
• Price Target Upside: 3.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: kr531.00 ▲(3.31% Upside)

HMS Networks AB's overall stock score is primarily influenced by its solid financial performance and bullish technical indicators. However, the high valuation and overbought technical signals present potential risks. The absence of earnings call data and corporate events means these factors did not impact the score.

HMS Networks AB Business Overview & Revenue Model

Company Description

HMS Networks AB (HMS) is a Swedish company that specializes in industrial communication and IoT solutions. The company operates primarily in the sectors of automation and connectivity, providing products that enable communication between industrial devices and systems. HMS's core offerings include a range of hardware and software solutions such as gateways, remote access products, and protocol converters that facilitate interoperability in industrial environments. The company serves a diverse clientele across various industries, including manufacturing, energy, transportation, and building automation.

How the Company Makes Money

HMS generates revenue through multiple streams primarily centered around the sale of its hardware products, software solutions, and services. The main revenue stream comes from the sale of communication gateways and devices that enable connectivity in industrial applications. Additionally, HMS earns money from licensing its software solutions, which facilitate data communication and management. The company also provides services such as technical support, consulting, and training, which contribute to its revenue. Significant partnerships with leading industrial manufacturers and technology companies enhance its market reach and drive sales growth. Furthermore, HMS benefits from ongoing trends in digitalization and IoT, as industries increasingly seek to implement advanced connectivity solutions.

HMS Networks AB Financial Statement Overview

Summary

HMS Networks AB demonstrates strong profitability with consistent gross profit margins and healthy EBIT and EBITDA margins. However, the decline in revenue growth and challenges in cash conversion slightly dampen the overall financial performance.

Income Statement

HMS Networks AB shows strong profitability with consistent gross profit margins above 62% and a net profit margin of 11% in the TTM. However, the revenue growth rate has declined by 6% in the TTM, indicating a potential slowdown in sales. The EBIT and EBITDA margins remain healthy, reflecting efficient operations.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.81 in the TTM, indicating manageable leverage. Return on equity is stable at 11%, suggesting effective use of equity to generate profits. The equity ratio is strong, highlighting a solid financial structure.

Cash Flow

HMS Networks AB has shown a positive free cash flow growth rate of 3.5% in the TTM, with a strong free cash flow to net income ratio of 0.84. However, the operating cash flow to net income ratio has decreased, indicating potential challenges in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.33B	3.06B	3.02B	2.51B	1.97B	1.47B
Gross Profit	2.09B	1.92B	1.97B	1.58B	1.23B	908.76M
EBITDA	712.00M	703.15M	860.70M	740.44M	557.37M	383.44M
Net Income	369.00M	309.68M	570.64M	507.79M	354.85M	223.49M
Balance Sheet
Total Assets	6.88B	7.50B	3.01B	2.73B	2.20B	1.83B
Cash, Cash Equivalents and Short-Term Investments	70.00M	73.93M	124.03M	144.17M	172.17M	81.54M
Total Debt	2.70B	3.16B	267.38M	298.59M	84.14M	273.62M
Total Liabilities	3.55B	3.99B	1.08B	1.12B	1.03B	605.48M
Stockholders Equity	3.32B	3.50B	1.93B	1.61B	1.18B	1.20B
Cash Flow
Free Cash Flow	650.00M	471.00M	445.00M	348.06M	469.30M	322.14M
Operating Cash Flow	770.00M	592.02M	518.86M	431.11M	508.49M	369.79M
Investing Cash Flow	-648.00M	-4.45B	-135.12M	-365.93M	-100.04M	-87.52M
Financing Cash Flow	-97.00M	3.83B	-400.23M	-98.96M	-320.86M	-246.70M

HMS Networks AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 514.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HMS, the sentiment is Positive. The current price of 514 is above the 20-day moving average (MA) of 485.65, above the 50-day MA of 460.37, and above the 200-day MA of 447.10, indicating a bullish trend. The MACD of 22.44 indicates Negative momentum. The RSI at 62.27 is Neutral, neither overbought nor oversold. The STOCH value of 65.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:HMS.

HMS Networks AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPEN	66 Neutral	kr3.85B	26.47	9.68%	1.06%	-1.85%	-16.44%
HTRO	63 Neutral	€4.01B	31.13	3.38%	―	0.01%	-71.63%
HMS	62 Neutral	$25.81B	58.94	12.77%	―	13.97%	20.46%
IVSO	62 Neutral	€13.76B	64.91	21.88%	0.77%	5.69%	4.82%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAVEN	55 Neutral	kr337.39M	―	-5.81%	―	-9.79%	-144.24%
NETI.B	50 Neutral	€1.22B	828.41	0.15%	―	-12.55%	-98.16%

HMS Networks AB Corporate Events

HMS Networks AB Reports Strong Q3 2025 Performance

HMS Networks AB is a leading provider of industrial communication solutions, specializing in the development and manufacturing of products that enable industrial equipment to communicate and connect with IT systems, primarily in the telecommunications sector. The company operates globally with a strong presence in North America, Europe, and Asia.

HMS Networks Reports Strong Q3 Growth and Sets Ambitious 2030 Targets

HMS Networks AB reported a significant increase in order intake and net sales for the third quarter, driven by strong performance in North America and China. The company has set new strategic and financial targets, including a revenue goal of SEK 7.5 billion by 2030, and plans to expand through both organic growth and acquisitions. Despite uncertainties in tariffs and geopolitics, HMS remains optimistic about future growth, focusing on product development and operational efficiency.

The most recent analyst rating on (SE:HMS) stock is a Hold with a SEK476.00 price target. To see the full list of analyst forecasts on HMS Networks AB stock, see the SE:HMS Stock Forecast page.

HMS Networks to Release Q3 2025 Report with CEO and CFO Presentation

HMS Networks AB announced that it will release its third quarter report for 2025 on October 21st, followed by a conference call hosted by CEO Staffan Dahlström and CFO Joakim Nideborn. This event provides an opportunity for press and analysts to engage with the company’s leadership and gain insights into its financial performance and strategic direction. The presentation will be available in English and accessible via telephone or webcast, with materials posted on the company’s website. This announcement underscores HMS Networks’ commitment to transparency and stakeholder engagement.

The most recent analyst rating on (SE:HMS) stock is a Hold with a SEK455.00 price target. To see the full list of analyst forecasts on HMS Networks AB stock, see the SE:HMS Stock Forecast page.

HMS Networks AB Appoints Nomination Committee for 2026 AGM

HMS Networks AB has appointed a Nomination Committee for its 2026 Annual General Meeting, following consultations with its four largest shareholders. This committee, representing 53% of the company’s voting shares, will propose candidates for key positions and remuneration matters for the AGM scheduled on April 23, 2026. The move is significant for ensuring shareholder representation in the company’s governance and strategic planning.

The most recent analyst rating on (SE:HMS) stock is a Buy with a SEK535.00 price target. To see the full list of analyst forecasts on HMS Networks AB stock, see the SE:HMS Stock Forecast page.

HMS Networks Sets Ambitious 2030 Strategic Targets

HMS Networks AB has announced its strategic targets for 2030, focusing on financial growth, sustainability, and operational efficiency. The company aims to expand its customer base through organic growth and acquisitions, enhance its product portfolio, and increase annual recurring revenue. The targets include achieving a net sales goal of SEK 7.5 billion and an EBITA margin of 25%. HMS also plans to improve its carbon footprint and employee engagement, aiming for a net positive carbon footprint by 2050 and an EcoVadis Gold rating. The business climate shows improvement in the USA and Germany, while other regions like the EU and Japan remain weaker. The company is addressing past challenges, such as US tariffs and delivery delays, to stabilize its operations and improve gross margins.

The most recent analyst rating on (SE:HMS) stock is a Buy with a SEK535.00 price target. To see the full list of analyst forecasts on HMS Networks AB stock, see the SE:HMS Stock Forecast page.

HMS Networks to Unveil 2030 Strategy at Capital Markets Day

HMS Networks AB is hosting a hybrid Capital Markets Day on September 9, 2025, in Stockholm and online, where President and CEO Staffan Dahlström, CFO Joakim Nideborn, and other executives will discuss the company’s strategy and objectives for 2030, along with a trading update. This event is crucial for investors, analysts, and stakeholders to gain insights into HMS Networks’ future plans and market positioning, with opportunities for digital attendees to engage through a live chat.