HMS Networks AB (SE:HMS)
:HMS
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HMS Networks AB
(HMS)
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Rating:67Neutral
Price Target:
kr526.00
▲(31.11% Upside)
Action:UpgradedDate:01/29/26
Score is driven primarily by strong financial performance (high margins and improving free cash flow) and a constructive earnings call showing margin outperformance and cash generation, partially offset by demanding valuation (P/E ~47) and a mixed technical picture with the stock still below key longer-term moving averages.
Positive Factors
High and improving margins
Sustained high gross and adjusted EBIT margins (Q4 28%, FY 25.5%, gross ~63%) indicate strong product differentiation and pricing power in industrial connectivity. Durable margins support reinvestment, R&D and cash returns, insulating the business from normal cyclical downturns and funding strategic growth.
Negative Factors
Earnings and margin volatility
Sharp margin swings (net margin cut from ~19–20% to ~10% in 2024) show profit sensitivity to project timing, mix and one-offs. This volatility reduces forecast reliability, complicates capital allocation and raises the odds of earnings surprises as volumes or mix change across industrial project cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving margins
Sustained high gross and adjusted EBIT margins (Q4 28%, FY 25.5%, gross ~63%) indicate strong product differentiation and pricing power in industrial connectivity. Durable margins support reinvestment, R&D and cash returns, insulating the business from normal cyclical downturns and funding strategic growth.
Read all positive factors
HMS Networks AB (HMS) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr23.87B
Dividend YieldN/A
Average Volume (3M)28.58K
Price to Earnings (P/E)48.3
Beta (1Y)1.05
Revenue Growth13.97%
EPS Growth20.46%
CountrySE
Employees1,100
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)1.74
Shares Outstanding50,318,867
10 Day Avg. Volume37,917
30 Day Avg. Volume28,579
Financial Highlights & Ratios
PEG Ratio1.32
Price to Book (P/B)6.05
Price to Sales (P/S)5.88
P/FCF Ratio25.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)14.18
Revenue Forecast (FY)kr3.85B
HMS Networks AB Business Overview & Revenue Model
Company Description
HMS Networks AB (publ) provides industrial communication and industrial Internet of Things solutions under the Anybus, Ewon, IXXAT, and Intesis brands worldwide. The company offers Anybus Embedded that offers multi-network connectivity with a sing...
How the Company Makes Money
HMS primarily makes money by selling industrial communication and connectivity products and associated software used to link industrial devices and systems. Key revenue streams include: (1) Hardware product sales: revenue from embedded communicati...
HMS Networks AB Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial recovery: robust Q4 organic sales (+23%), record profitability with adjusted EBIT margin above targets (28% Q4; 25.5% FY), strong cash flow (SEK 877m FY) and successful acquisition integrations (Red Lion, PEAK, Molex). These positives were balanced against near-term headwinds: Q4 order intake was modest (+3% organic), North American project timing remains lumpy, notable currency headwinds (~-10% on orders and -SEK15m EBIT), and a SEK 104m one-time tax payment reduced reported EPS and cash flow. Management highlighted continued investment and OpEx ramp in 2026 and cautioned about potential margin effects as volumes normalize. Overall, the positive operational momentum, margin outperformance and strong cash generation outweigh the transitory market, FX and tax-related challenges.Positive Updates
Strong Q4 Sales Growth
Net sales in Q4 reached SEK 951 million, with organic sales growth of 23% driven by strong deliveries versus prior project backlog.
Negative Updates
Soft Order Intake in Q4 and Market Hesitancy
Order intake in Q4 was only +3% organic, with management describing the market as still soft and hesitant and expecting a broader pickup in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Sales Growth
Net sales in Q4 reached SEK 951 million, with organic sales growth of 23% driven by strong deliveries versus prior project backlog.
Read all positive updates
Company Guidance
Management said they expect a market pickup in 2026 (North America’s weaker Q4 seen as temporary) with book‑to‑bill at around 1 or higher, a gradual ramp-up in OpEx through 2026, and efforts to keep working capital neutral or reduce inventory further; they highlighted completed financing and a net debt / EBITDA (pre‑IFRS16) of 2.13 (target <2.5), Q1 capacity upgrades in York to finish and better delivery from Q2, and warned of FX headwinds (approx. -10% on orders and an EBIT impact ~-SEK 15m), while noting a one‑time tax payment of SEK 104m related to the 338(h)(10) election. For context they closed 2025 with Q4 organic order growth +3% and Q4 organic sales +23% (FY organic orders +10%, sales +3%), Q4 adjusted EBIT SEK 268m (28% margin) and FY adjusted EBIT SEK 911m (25.5% margin), adjusted EPS Q4 SEK 4.17 / FY SEK 13.73, gross margin ~63%, cash flow Q4 SEK 231m / FY SEK 877m with cash conversion 82%, inventory reduction SEK 207m, proposed dividend SEK 4.80/share, and the Molex Industrial Communication deal paid USD 7m with expected revenue north of USD 10m.HMS Networks AB Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.58B | 3.06B | 3.02B | 2.51B | 1.97B |
| Gross Profit | 2.25B | 1.92B | 1.97B | 1.58B | 1.23B |
| EBITDA | 1.03B | 703.15M | 854.88M | 740.44M | 554.26M |
| Net Income | 435.00M | 309.68M | 570.64M | 507.79M | 354.85M |
Balance Sheet | |||||
| Total Assets | 6.60B | 7.50B | 3.01B | 2.73B | 2.20B |
| Cash, Cash Equivalents and Short-Term Investments | 89.00M | 73.93M | 124.03M | 144.17M | 172.17M |
| Total Debt | 2.43B | 3.16B | 267.38M | 298.59M | 84.14M |
| Total Liabilities | 3.12B | 3.99B | 1.08B | 1.12B | 1.03B |
| Stockholders Equity | 3.48B | 3.50B | 1.93B | 1.61B | 1.18B |
Cash Flow | |||||
| Free Cash Flow | 815.00M | 471.00M | 445.00M | 348.06M | 469.30M |
| Operating Cash Flow | 878.00M | 592.02M | 518.86M | 431.11M | 508.49M |
| Investing Cash Flow | -135.00M | -4.45B | -135.12M | -365.93M | -100.04M |
| Financing Cash Flow | -715.00M | 3.83B | -400.23M | -98.96M | -320.86M |
HMS Networks AB Technical Analysis
Positive
401.20
Price Trends
415.55
Positive
421.26
Positive
435.66
Positive
Market Momentum
17.98
Negative
73.90
Negative
87.41
Negative
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 401.2 is below the 20-day moving average (MA) of 437.87, below the 50-day MA of 415.55, and below the 200-day MA of 435.66, indicating a bullish trend. The MACD of 17.98 indicates Negative momentum. The RSI at 73.90 is Negative, neither overbought nor oversold. The STOCH value of 87.41 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | kr13.41B | 55.69 | 21.88% | 0.87% | 5.69% | 4.82% | |
67 Neutral | kr23.87B | 48.34 | 12.76% | ― | 13.97% | 20.46% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | kr3.47B | 20.62 | 9.68% | 1.11% | -1.85% | -16.44% | |
55 Neutral | kr7.28B | -338.28 | 3.38% | ― | 0.01% | -71.63% | |
47 Neutral | kr243.23M | -18.80 | -5.81% | ― | -9.79% | -144.24% | |
47 Neutral | kr869.00M | -176.87 | -1.21% | ― | -15.56% | -92.87% |
* Technology Sector Average
SE:HMS
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HMS Networks AB Corporate Events
HMS Networks Sets April 23 Date for Q1 2026 Report and Investor Call
Apr 7, 2026
HMS Networks has scheduled the release of its first‑quarter 2026 report for April 23, 2026, at 07:30 CEST, underscoring its regular financial disclosure cycle to the market. Later that morning, at 09:00 CEST, CEO Staffan Dahlström and C...
HMS Networks Revises Start Time for 2026 Annual General Meeting
Mar 30, 2026
HMS Networks AB has adjusted the starting time of its 2026 Annual General Meeting, which will still be held on the previously announced date and location but will now open at 11:00 a.m. CEST instead of 10:30 a.m. CEST. Registration will begin at 9...
HMS Networks Calls 2026 AGM, Proposes Larger Board and New Share Plan
Mar 13, 2026
HMS Networks AB has called its Annual General Meeting for April 23, 2026, at its head office in Halmstad, setting out participation rules for shareholders, including share registration dates and procedures for proxies and nominee-registered holdin...
HMS Networks Nomination Committee Proposes Expanded Board and New Director
Mar 5, 2026
HMS Networks AB’s Nomination Committee has proposed the re-election of six current board members, including Chair Charlotte Brogren, for approval at the 2026 Annual General Meeting. The committee also proposes expanding the board from six to...
HMS Networks Delivers Record 2025 Profit and Bolsters Industrial Communications Portfolio
Jan 27, 2026
HMS Networks AB reported a strong 2025, with fourth-quarter net sales up 18% year-on-year and full-year net sales rising 17%, underpinned by solid organic growth, record deliveries and an adjusted operating margin improving to 28.2% in the quarter...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.