Proact IT Group AB (PACT) AI Stock Analysis

• Market Cap: kr2.92B
• Dividend Yield: 2.18%
• Average Volume (3M): 57.72K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.90
• 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): 5.86
• Revenue Forecast (FY): kr4.70B

• Rating: 63 Neutral
• Price Target: kr112.00 ▲(1.63% Upside)

The overall stock score of 63 reflects a stable financial position with strong profitability and reasonable valuation. However, technical analysis indicates potential overbought conditions, and declining revenue and free cash flow growth present risks to future performance.

Positive Factors

Strong Profitability

Proact IT Group AB's stable profitability margins indicate efficient operations and the ability to maintain earnings despite revenue challenges, supporting long-term financial health.

Manageable Leverage

The improved debt-to-equity ratio reflects Proact's effective management of its financial obligations, enhancing its financial stability and flexibility for future growth.

Cash Generation

Strong cash generation relative to net income suggests Proact's operations are efficiently converting earnings into cash, which is crucial for funding growth and meeting financial commitments.

Negative Factors

Declining Revenue Growth

The decline in revenue growth indicates potential challenges in maintaining sales momentum, which could impact long-term business expansion and market competitiveness.

Free Cash Flow Decline

A significant decline in free cash flow growth poses a risk to Proact's ability to invest in future opportunities and manage financial obligations, potentially affecting long-term sustainability.

Revenue Growth Challenges

Ongoing revenue growth challenges and reduced free cash flow growth highlight potential difficulties in sustaining long-term growth and financial health, impacting strategic initiatives.

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

Proact IT Group AB demonstrates stable profitability and manageable leverage. However, challenges include declining revenue growth and a significant drop in free cash flow growth, which could impact long-term financial health.

Income Statement

Proact IT Group AB's income statement reveals a mixed performance. The TTM (Trailing-Twelve-Months) data shows a slight decline in revenue growth at -2.05%, indicating potential challenges in maintaining sales momentum. However, the company maintains a stable gross profit margin of approximately 23.87% and a net profit margin of 3.63%, which suggests operational efficiency. The EBIT and EBITDA margins are moderate at 5.37% and 9.77%, respectively, reflecting decent profitability. Overall, while profitability remains stable, the negative revenue growth is a concern.

Balance Sheet

The balance sheet of Proact IT Group AB is relatively strong. The debt-to-equity ratio has improved to 0.56, indicating a manageable level of leverage. The return on equity (ROE) stands at 15.25%, showcasing effective use of equity to generate profits. The equity ratio is approximately 25.14%, suggesting a solid equity base relative to total assets. The company has shown improvement in reducing debt levels, enhancing financial stability.

Cash Flow

Cash flow analysis indicates some challenges. The TTM free cash flow growth rate is negative at -78.4%, which is concerning. However, the operating cash flow to net income ratio is 2.72, indicating strong cash generation relative to net income. The free cash flow to net income ratio is healthy at 93.77%, suggesting that the company is generating sufficient free cash flow relative to its net income. Despite strong cash generation, the significant decline in free cash flow growth is a potential risk.

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: Positive
• Last Price: 110.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PACT, the sentiment is Positive. The current price of 110.2 is above the 20-day moving average (MA) of 105.88, above the 50-day MA of 100.85, and above the 200-day MA of 104.57, indicating a bullish trend. The MACD of 2.33 indicates Negative momentum. The RSI at 66.20 is Neutral, neither overbought nor oversold. The STOCH value of 80.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
EXS	68 Neutral	kr2.05B	27.86	15.90%	1.13%	10.92%	-2.56%
SOF.B	66 Neutral	kr1.16B	15.32	27.44%	6.14%	4.00%	-12.08%
PACT	63 Neutral	kr2.92B	18.56	14.35%	2.18%	-4.36%	-31.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KNOW	56 Neutral	kr3.17B	32.43	2.38%	1.96%	-9.85%	-38.24%
B3	55 Neutral	kr375.40M	140.23	1.19%	―	13.21%	-97.19%
DUST	46 Neutral	kr2.38B	-0.49	―	―	-5.00%	-1757.14%

Proact IT Group AB Corporate Events

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.

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.

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.

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.

Proact IT Group AB Reports Q3 2025 Results with Strategic Growth in Cloud Services

Proact IT Group AB reported a decrease in total revenue by 4.3% for the third quarter of 2025, with earnings after tax also declining. Despite these challenges, the company saw a significant increase in new cloud service contracts, which grew by 142.8%, and was recognized with the Global Partner Innovation Award 2025 by NetApp for its performance in cybersecurity. Additionally, Proact’s acquisition of Consular is expected to bolster its position in the Nordic market.

Proact IT Group AB Acquires Consular ApS to Strengthen Nordic Market Position

Proact IT Group AB has announced its acquisition of Consular ApS, a Danish IT company with a strong market position in data infrastructure, to bolster its presence in the Nordic region and enhance its expertise in infrastructure and cloud solutions. This strategic move is expected to create a leading offering in these areas, benefiting from Consular’s established customer relationships and technical expertise. The acquisition, valued at an initial DKK 65 million with potential earn-outs, is set to close in the fourth quarter of 2025, pending regulatory approval.

Proact IT Group AB to Present Q3 2025 Interim Report

Proact IT Group AB has announced the release of its Q3 2025 interim report, scheduled for October 24, 2025. The report will be presented via a webcast by CEO Magnus Lönn and CFO Noora Jayasekara, offering insights into the company’s financial performance and strategic direction. This announcement is significant for investors, analysts, and media stakeholders as it provides an opportunity to engage with the company’s leadership and understand its market positioning.

Proact IT Group AB Appoints Nomination Committee for 2026 AGM

Proact IT Group AB has appointed a Nomination Committee for its 2026 Annual General Meeting, as per the resolution of the previous meeting. The committee consists of representatives from the four largest shareholders by voting rights, with Länsförsäkringar Fondförvaltning stepping in as the fourth largest shareholder declined to appoint a representative. This move ensures continued stakeholder engagement and governance, potentially impacting the company’s strategic direction and shareholder relations.