Proact IT Group AB (PACT) AI Stock Analysis

• Market Cap: kr2.70B
• Dividend Yield: 2.13%
• Average Volume (3M): 57.72K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.86
• Revenue Growth: -4.36%
• EPS Growth: -31.55%
• Country: SE
• Employees: 1,181
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.39
• Shares Outstanding: 27,101,658
• 10 Day Avg. Volume: 39,441
• 30 Day Avg. Volume: 57,722
• PEG Ratio: 0.49
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 6.45
• 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: 67 Neutral
• Price Target: kr108.00 ▼(-2.88% Downside)

Overall score reflects stable but cooling fundamentals (slightly lower revenue, margin compression, and weaker free cash flow) balanced by a constructive technical setup (price above major moving averages with positive MACD). Valuation is reasonable but not compelling at a 19.3 P/E with a ~2.12% dividend yield.

Positive Factors

Recurring managed-services revenue

Proact’s revenue mix includes managed services and recurring contracts that create more predictable, subscription-like cash flows and higher customer stickiness. Over 2–6 months this stabilizes revenue, supports steady service margins, and increases opportunities to upsell and deepen customer relationships.

Manageable leverage and solid ROE

Debt-to-equity around 0.55 and a ~14% return on equity point to controlled leverage and efficient capital use. Having reduced peak leverage versus 2021–2022, the company has greater financial flexibility to invest in services, absorb cyclical shocks, or pursue targeted strategic initiatives without excessive refinancing risk.

Steady service gross margins

A consistent gross margin in the low-to-mid 20% range indicates durable service-level economics for Proact’s infrastructure and data solutions. This underlying margin resiliency enables the business to sustain operating profits, attach higher-margin services to product sales, and fund ongoing investments in capabilities over the medium term.

Negative Factors

Top-line weakness

Trailing-twelve-month revenue decline of roughly 4.4% signals weakening demand or lost share, constraining operating leverage. Continued top-line pressure reduces the scope for reinvestment in sales and product development, makes scaling recurring revenue harder, and lengthens the path back to durable organic growth.

Margin compression

Net margin contraction from ~4.5% to ~3.3% and softer EBIT/EBITDA margins reflect rising cost or pricing pressure that erodes profitability. If persistent, margin deterioration will weaken cash generation, limit reinvestment capacity, and increase sensitivity to revenue volatility over the medium term.

Weaker free cash flow

Free cash flow falling to ~0.91x of net income with a sharp year-over-year decline reduces financial flexibility. Deteriorating FCF constrains capex, M&A and shareholder returns, and may force greater reliance on debt or equity financing to pursue strategic initiatives, raising long-term funding risk.

Proact IT Group AB Business Overview & Revenue Model

Company Description

Proact IT Group AB (publ), together with its subsidiaries, provides data and information management services with focus on cloud services and data center solutions. It offers data strategy advisory services, including strategic consultancy and architecture services; storage data, archive, and database management services; connect data services, such as network, edge computing, and cloud based solutions; backup, disaster recovery, security, and support services to secure and protest data; and artificial intelligence, analytic, automation, and workspace related services. The company also provides professional services, such as strategic consulting, project management, design, migration, implementation, training, health check, maintenance, and assessment services. It serves retail and services, public, telecom, manufacturing, oil and energy, banking and finance, media, and other sectors. The company operates in Sweden, Norway, Finland, Denmark, the United Kingdom, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia, the Netherlands, Belgium, Spain, Germany, and the United States. Proact IT Group AB (publ) was incorporated in 1994 and is headquartered in Kista, Sweden.

How the Company Makes Money

Proact IT Group AB generates revenue primarily through its IT services and solutions offerings, which include managed cloud services, data management solutions, and hardware sales. Key revenue streams include recurring revenue from subscription-based services, professional consulting fees, and project-based contracts for system integration and implementation. The company also benefits from strategic partnerships with major technology providers, enabling it to deliver comprehensive solutions that enhance its offerings. Additionally, the growing demand for cloud computing and data management solutions in various industries contributes significantly to its earnings.

Proact IT Group AB Financial Statement Overview

Summary

Financials appear stable but slowing: TTM revenue is slightly down and profitability has softened (net margin ~3.3% vs ~4.5% in 2024) with lower EBIT/EBITDA margins. Balance sheet leverage is manageable (debt-to-equity ~0.55) but equity declined vs 2024, and cash flow remains positive yet materially weaker year-over-year with sharply lower free cash flow.

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly down versus the prior year, and profitability softened: net margin is ~3.3% vs ~4.5% in 2024, with lower EBIT and EBITDA margins as well. Positives include generally steady gross margin in the low-to-mid 20% range over time and a history of solid profitability in prior years, but the current trajectory shows modest top-line pressure and margin compression.

Balance Sheet

Leverage looks manageable with debt-to-equity at ~0.55 in TTM (Trailing-Twelve-Months), and the company remains profitable with ~14% return on equity (down from 2024). The balance sheet improved materially from higher leverage levels seen in 2021–2022, though the recent uptick in debt-to-equity from 2024 and the decline in equity vs 2024 suggest somewhat reduced financial flexibility versus last year.

Cash Flow

Cash generation remains supportive, with free cash flow running at ~0.91x net income in TTM (Trailing-Twelve-Months), indicating earnings quality is decent. However, free cash flow declined sharply versus the prior year (negative growth), and operating cash flow is also lower than 2023–2024 levels, pointing to weaker near-term cash momentum despite still-positive cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.74B	4.86B	4.85B	4.76B	3.52B	3.63B
Gross Profit	1.13B	1.21B	1.09B	1.05B	811.43M	816.42M
EBITDA	462.50M	520.49M	484.63M	478.87M	348.87M	374.26M
Net Income	158.60M	219.88M	172.65M	191.26M	117.13M	131.68M
Balance Sheet
Total Assets	4.20B	4.48B	4.04B	4.24B	3.39B	2.92B
Cash, Cash Equivalents and Short-Term Investments	444.50M	813.52M	547.90M	505.68M	463.93M	468.31M
Total Debt	596.70M	483.46M	468.27M	731.24M	724.10M	446.29M
Total Liabilities	3.12B	3.30B	3.04B	3.32B	2.68B	2.32B
Stockholders Equity	1.08B	1.17B	1.01B	919.53M	710.61M	601.95M
Cash Flow
Free Cash Flow	324.80M	492.85M	486.70M	413.25M	253.82M	363.40M
Operating Cash Flow	356.20M	524.07M	532.04M	454.26M	303.57M	468.09M
Investing Cash Flow	-236.30M	-26.51M	-51.93M	-194.62M	-404.62M	-148.72M
Financing Cash Flow	-311.80M	-247.15M	-430.06M	-247.39M	74.71M	-193.41M

Proact IT Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 111.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PACT, the sentiment is Negative. The current price of 111.2 is above the 20-day moving average (MA) of 107.85, above the 50-day MA of 107.71, and above the 200-day MA of 103.38, indicating a bearish trend. The MACD of -2.45 indicates Positive momentum. The RSI at 27.49 is Positive, neither overbought nor oversold. The STOCH value of 11.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:PACT.

Proact IT Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOF.B	71 Outperform	kr1.12B	14.83	27.44%	6.29%	4.00%	-12.08%
PACT	67 Neutral	kr2.70B	17.15	14.35%	2.13%	-4.36%	-31.55%
EXS	64 Neutral	kr1.95B	22.75	15.90%	1.13%	10.92%	-2.56%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KNOW	56 Neutral	kr3.16B	32.37	2.38%	2.03%	-9.85%	-38.24%
B3	55 Neutral	kr366.74M	133.14	1.19%	―	13.21%	-97.19%
DUST	50 Neutral	kr2.33B	-0.49	―	―	-5.00%	-1757.14%

Proact IT Group AB Corporate Events

Proact Schedules Webcast for 2025 Year-End Report Release

Proact IT Group AB has announced that it will publish its 2025 year-end report on 10 February 2026 and will host an English-language webcast presentation the same morning for investors, analysts and media, led by President and CEO Magnus Lönn and interim CFO Åsa Regen Jansson. The live event, which will include a Q&A session, and a recorded version of the presentation will be made available on the company’s website, underscoring Proact’s efforts to maintain transparent communication with the market ahead of its financial disclosures.

The most recent analyst rating on (SE:PACT) stock is a Buy with a SEK125.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.

Proact IT Group AB Finalizes Cost-Efficiency Program

Proact IT Group AB has announced the completion of its cost-efficiency program, which was initiated earlier this year and will conclude in the fourth quarter of 2025. This program, which involves staff reductions and management changes, will incur one-off costs of approximately SEK 55 million. The initiative aims to enhance operational efficiency and create conditions for profitable growth, particularly within Business Unit Central and Business Unit West. Meanwhile, Business Unit Nordic & Baltics and Business Unit UK have maintained strong performance throughout the year.

The most recent analyst rating on (SE:PACT) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.

Proact IT Group AB Completes Acquisition of Consular ApS

Proact IT Group AB has finalized the acquisition of Danish IT company Consular ApS, enhancing its position in the Nordic market for infrastructure and cloud solutions. This acquisition is expected to bolster Proact’s Business Unit Nordic & Baltics through Consular’s expertise and market presence, contributing to continued growth and strengthening Proact’s offerings in data infrastructure and IT services.

The most recent analyst rating on (SE:PACT) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.

Proact IT Group Appoints Åsa Regen Jansson as Interim CFO

Proact IT Group AB has appointed Åsa Regen Jansson as interim CFO, succeeding Noora Jayasekara, who is leaving to pursue new opportunities. Åsa brings significant experience, having previously served as interim CFO at Proact and as CFO at Braathens Regional Airlines, ensuring continuity during this transition period.

The most recent analyst rating on (SE:PACT) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.

Proact IT Group Appoints New Business Unit Director for Nordic & Baltics

Proact IT Group AB has appointed Niklas Jakobsson as the Business Unit Director for Nordic & Baltics, effective December 1, 2025. Jakobsson, who previously served as Managing Director for Dell Technologies in Sweden, brings extensive experience in leading sales and operations teams in the IT industry. His appointment is expected to drive strategic development and growth in the region, succeeding Magnus Lönn, who temporarily led the unit. The company anticipates that Jakobsson’s leadership will further enhance Proact’s market position and offerings in the Nordic and Baltic regions.

The most recent analyst rating on (SE:PACT) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.

Proact IT Group AB Announces CFO Resignation

Proact IT Group AB announced the resignation of CFO Noora Jayasekara, who will remain in her role until a successor is appointed, or until March 2026 at the latest. Her departure marks a significant transition for the company, as she has been instrumental in strengthening Proact’s financial structure and laying the groundwork for continued profitable growth. The recruitment process for a new CFO will begin immediately, indicating Proact’s commitment to maintaining its strategic financial direction.

The most recent analyst rating on (SE:PACT) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.