Hoist Finance AB (HOFI) AI Stock Analysis

• Market Cap: kr8.25B
• Dividend Yield: 2.12%
• Average Volume (3M): 116.21K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.63
• Revenue Growth: 33.39%
• EPS Growth: 67.61%
• Country: SE
• Employees: 1,031
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Mortgages
• EPS (TTM): 2.31
• Shares Outstanding: 87,422,610
• 10 Day Avg. Volume: 105,176
• 30 Day Avg. Volume: 116,210
• PEG Ratio: -14.24
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.30
• 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: kr94.00
• Price Target Upside: -0.42% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: ―

Hoist Finance AB's strong financial performance, characterized by revenue growth and debt elimination, significantly boosts its overall score. The stock appears undervalued based on its low P/E ratio. However, the negative technical indicators, such as trading below key moving averages, suggest a bearish trend, which impacts the overall score negatively. The absence of earnings call data and corporate events simplifies the analysis but limits insights into future potential.

Hoist Finance AB Business Overview & Revenue Model

Company Description

Hoist Finance AB (publ), a credit market company, engages in the loan acquisition and management operations in Europe. It operates through three segments: Unsecured, Secured, and Performing. The company purchases performing and non-performing loans from its partners, international banks, and financial institutions. It also provides current account and fixed-term deposits. The company was formerly known as Hoist International AB (publ) and changed its name to Hoist Finance AB (publ) in January 2015. Hoist Finance AB (publ) was founded in 1994 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Hoist Finance generates revenue primarily through the purchase and collection of non-performing loans (NPLs) from various financial institutions. By acquiring these distressed assets at a discount, Hoist Finance can profit from the recovery of these debts over time. The company employs a combination of in-house collection strategies and partnerships with local agencies to optimize debt recovery. Hoist Finance’s revenue streams are significantly influenced by its ability to efficiently manage these portfolios and achieve higher recovery rates than the purchase price. Additionally, strategic partnerships with banks and financial institutions play a crucial role in maintaining a steady pipeline of NPL acquisitions, contributing to the company's earnings.

Hoist Finance AB Financial Statement Overview

Summary

Hoist Finance AB exhibits strong financial health with significant revenue growth and improved profitability. The elimination of debt enhances financial stability, and robust cash flow generation supports operational flexibility. However, the low equity ratio poses potential risks in volatile market conditions, and there's room for improving operational efficiency.

Income Statement

Hoist Finance AB demonstrates strong revenue growth with a 12.52% increase from 2023 to 2024 and a consistent gross profit margin of 100% due to the nature of its operations. The net profit margin improved significantly from 20.71% in 2023 to 26.21% in 2024, showcasing enhanced profitability. However, the EBIT margin remained stable, slightly increasing from 22.00% to 19.82%, indicating operational efficiency but with room for improvement in earnings before taxes.

Balance Sheet

The company's balance sheet shows a healthy equity ratio of 11.77% in 2024, up from 14.51% in 2023, indicating a stable capital structure. The elimination of total debt in 2024 significantly improved the debt-to-equity ratio to 0 from a concerning 1.35 in 2023, reducing financial risk. Return on equity also increased to 15.11% in 2024 from 14.40%, reflecting improved profitability for shareholders. However, the relatively low equity ratio suggests potential vulnerability to financial fluctuations.

Cash Flow

The cash flow statement shows robust growth in free cash flow from 2023 to 2024, with a 31.96% increase, indicating strong cash generation capabilities. The operating cash flow to net income ratio remains healthy at 5.73 in 2024, showing efficient conversion of income into cash. The free cash flow to net income ratio also improved to 5.73 from 6.19, highlighting efficient cash utilization, though the absence of capital expenditures might indicate underinvestment in growth opportunities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.61B	5.09B	3.44B	3.12B	2.59B	2.83B
	Gross Profit
3.97B	3.90B	3.14B	2.56B	2.19B	2.37B
	EBIT
1.14B	1.30B	755.00M	399.00M	-39.00M	82.00M
	EBITDA
1.46B	1.40B	1.36B	839.00M	0.00	0.00
	Net Income Common Stockholders
1.01B	1.01B	711.00M	801.00M	-117.00M	41.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	0.00	0.00	-105.00M	-144.00M	-204.00M
	Total Assets
57.75B	56.93B	34.02B	32.50B	30.37B	31.86B
	Total Debt
7.93B	7.05B	6.66B	6.55B	6.04B	7.38B
	Net Debt
7.93B	7.05B	13.25B	6.66B	6.18B	7.58B
	Total Liabilities
51.39B	50.23B	27.98B	26.75B	25.43B	26.71B
	Stockholders Equity
6.36B	5.60B	4.94B	5.74B	4.94B	5.16B
Cash Flow		Free Cash Flow
6.10B	5.81B	4.40B	-3.08B	3.48B	4.86B
	Operating Cash Flow
6.10B	5.81B	4.40B	3.84B	3.48B	4.86B
	Investing Cash Flow
-14.00B	-18.08B	-3.62B	-7.13B	-3.00B	-3.07B
	Financing Cash Flow
19.98B	20.06B	572.00M	4.33B	-1.45B	-2.41B

Hoist Finance AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HOFI, the sentiment is Positive. The current price of 94.4 is above the 20-day moving average (MA) of 91.26, above the 50-day MA of 81.14, and above the 200-day MA of 84.07, indicating a bullish trend. The MACD of 3.70 indicates Positive momentum. The RSI at 65.76 is Neutral, neither overbought nor oversold. The STOCH value of 81.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:HOFI.

Hoist Finance AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NORION	72 Outperform	kr9.58B	7.30		―	8.78%	7.15%
HOFI	70 Neutral	kr8.25B	9.05	16.80%	2.12%	33.39%	67.61%
RESURS	65 Neutral	kr5.22B	34.11	-0.06%	―	3.75%	-105.59%
TFBANK	65 Neutral	kr8.17B	13.16	26.39%	―	23.77%	58.98%
Sector *	64 Neutral	$12.86B	9.79	7.78%	16985.65%	12.28%	-7.82%
INTRUM	54 Neutral	kr4.40B	―	-23.48%	―	-9.54%	-905.07%