Proact IT Group AB (PACT) AI Stock Analysis

• Market Cap: kr2.65B
• Dividend Yield: 2.45%
• Average Volume (3M): 62.27K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.78
• Revenue Growth: -2.05%
• EPS Growth: -24.44%
• Country: SE
• Employees: 1,181
• Sector: Technology
• Sector Strength: 90
• Industry: Information Technology Services
• EPS (TTM): 0.89
• Shares Outstanding: 27,101,658
• 10 Day Avg. Volume: 106,573
• 30 Day Avg. Volume: 62,268
• PEG Ratio: -2.41
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.86
• 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: kr132.00
• Price Target Upside: 30.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: kr112.00 ▲(10.67%Upside)

Proact IT Group AB shows strong financial performance with solid growth and profitability, which significantly influences its overall score. However, technical analysis indicates bearish momentum, which is a concern. The stock is attractively valued, which supports the overall score despite weak technical indicators.

Proact IT Group AB Business Overview & Revenue Model

Company Description

Proact IT Group AB (PACT) is a leading independent data center and cloud services provider, primarily operating in Europe. The company specializes in delivering data management services, cloud solutions, and IT infrastructure to businesses across various sectors. Proact focuses on helping organizations store, connect, protect, and drive value through their data with a comprehensive range of services including consulting, implementation, and managed services.

How the Company Makes Money

Proact IT Group AB generates revenue through a combination of service-based and project-based income streams. The company earns money primarily by providing managed cloud services, which include hosting, storage, and data management solutions. Additionally, Proact generates revenue from IT infrastructure sales, where it supplies hardware and software solutions tailored to client needs. The company also offers consulting and implementation services, providing expertise in designing and deploying IT solutions. Strategic partnerships with leading technology vendors enhance Proact's offerings and contribute to its revenue by enabling it to deliver a broader range of solutions to its clients.

Proact IT Group AB Financial Statement Overview

Summary

Proact IT Group AB presents strong financial performance with consistent revenue and profit growth, a robust balance sheet, and strong cash flow management. The company has maintained impressive margins and effective leverage management, supporting its competitive position and long-term sustainability.

Income Statement

Proact IT Group AB exhibits strong revenue growth, with a consistent increase in Total Revenue over multiple periods. The company has maintained impressive Gross Profit Margins and achieved a healthy Net Profit Margin of 4.24% for the TTM (Trailing-Twelve-Months). The EBIT and EBITDA margins are robust, indicating efficient operational management. Stable revenue growth and profitability demonstrate the company's competitive position in the Information Technology Services industry.

Balance Sheet

The company maintains a sound financial position, with a favorable Debt-to-Equity Ratio of 0.53 for the TTM, showcasing effective leverage management. The Return on Equity (ROE) stands at 17.87%, reflecting efficient use of equity capital. A solid Equity Ratio of 26.81% highlights a strong equity base relative to total assets. The balance sheet reveals a stable capital structure, supporting the company's long-term sustainability.

Cash Flow

Proact IT Group AB demonstrates strong cash flow generation, with a significant Operating Cash Flow to Net Income Ratio of 2.30 and a Free Cash Flow to Net Income Ratio of 2.15 for the TTM. The Free Cash Flow Growth Rate is positive, indicating the ability to fund operations and investments without relying on external financing. The company's robust cash flow management enhances financial flexibility and supports growth initiatives.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.86B	4.85B	4.76B	3.52B	3.63B
Gross Profit	1.21B	1.09B	1.05B	811.43M	816.42M
EBITDA	509.70M	484.63M	478.87M	352.02M	374.26M
Net Income	219.88M	172.65M	191.26M	117.13M	131.68M
Balance Sheet
Total Assets	4.48B	4.04B	4.24B	3.39B	2.92B
Cash, Cash Equivalents and Short-Term Investments	813.52M	547.90M	505.68M	463.93M	468.31M
Total Debt	483.46M	468.27M	731.24M	724.10M	446.29M
Total Liabilities	3.30B	3.04B	3.32B	2.68B	2.32B
Stockholders Equity	1.17B	1.01B	919.53M	710.61M	601.95M
Cash Flow
Free Cash Flow	492.85M	486.70M	413.25M	253.82M	363.40M
Operating Cash Flow	524.07M	532.04M	454.26M	303.57M	468.09M
Investing Cash Flow	-26.51M	-51.93M	-194.62M	-404.62M	-148.72M
Financing Cash Flow	-247.15M	-430.06M	-247.39M	74.71M	-193.41M

Proact IT Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 101.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 101.2 is below the 20-day moving average (MA) of 102.01, below the 50-day MA of 109.07, and below the 200-day MA of 118.97, indicating a bearish trend. The MACD of -3.05 indicates Positive momentum. The RSI at 34.54 is Neutral, neither overbought nor oversold. The STOCH value of 36.48 is Neutral, 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	80 Outperform	kr1.26B	15.61	32.08%	5.77%	3.66%	-2.31%
B3	69 Neutral	kr501.14M	6.09	45.14%	6.36%	6.75%	119.93%
PACT	67 Neutral	kr2.65B	15.18	15.85%	2.45%	-2.05%	-24.44%
ANOD.B	66 Neutral	kr15.51B	36.55	18.26%	1.01%	-24.57%	33.87%
KNOW	60 Neutral	kr3.37B	41.43	1.97%	3.07%	-9.43%	-58.34%
Sector *	50 Neutral	C$3.05B	2.51	-63.57%	2.26%	4.49%	-6.15%
CYB1	36 Underperform	€5.00M	―		―	―	―

Proact IT Group AB Corporate Events

Proact IT Group AB Reports Revenue Decline Amid Strategic Initiatives

Proact IT Group AB reported a decline in total revenue and adjusted EBITA for the first half of 2025, with significant decreases in earnings before and after tax. Despite these challenges, the company secured new cloud services contracts and launched a new AI service, Hybrid Cloud AI, powered by Nvidia GPUs. Proact was also named NetApp’s Enterprise Partner of the Year 2025, highlighting its contributions to data storage and cloud services in Europe. The company has initiated a share buyback program and a group-wide action plan to address challenges in West and Central markets, focusing on skills review and organizational efficiency.

Proact IT Group AB Announces Q2 2025 Interim Report Presentation

Proact IT Group AB will release its Q2 2025 interim report on July 14, 2025, followed by a webcast presentation by CEO Magnus Lönn and CFO Noora Jayasekara. This announcement provides an opportunity for investors, analysts, and the media to gain insights into the company’s performance, potentially impacting its market positioning and stakeholder interests.

Proact IT Group AB Cancels 300,000 Shares to Optimize Share Capital

Proact IT Group AB announced the cancellation of 300,000 shares, reducing the total number of shares and votes to 27,101,658 as of May 30, 2025. This move, authorized by the Annual General Meeting, reflects the company’s strategic decision to manage its share capital, potentially impacting its market positioning and shareholder value.

Proact IT Group AB Initiates Share Repurchase Program

Proact IT Group AB has announced a share repurchase program authorized by its Board of Directors, allowing the company to buy back shares up to 10% of its total outstanding shares. This initiative aims to provide Proact with flexibility in capital structure management and facilitate acquisitions and long-term incentive programs, potentially impacting its financial strategy and shareholder value.

Proact IT Group AB Annual General Meeting 2025: Key Resolutions and Strategic Decisions

Proact IT Group AB held its Annual General Meeting on May 6, 2025, where several key resolutions were adopted. These included the approval of the 2024 financial statements, a dividend distribution, and the re-election of board members. Additionally, the meeting authorized the board to issue new shares, acquire and transfer own shares, and adjust share capital. The re-election of PricewaterhouseCoopers AB as the auditor and the approval of a new share-based incentive scheme were also notable decisions. These resolutions aim to strengthen Proact’s financial position and governance structure, potentially impacting its market operations and stakeholder interests.

Proact IT Group AB Reports Revenue Growth and Strategic Acquisition

Proact IT Group AB reported a 2% increase in total revenue for Q1 2025, driven by organic growth and strategic acquisitions, including the purchase of UK-based BlakYaks Ltd. Despite a decrease in adjusted EBITA and earnings per share, the company was named NetApp’s Enterprise Partner of the Year 2025, highlighting its strong positioning in the data storage and cloud integration market.