Proact IT Group AB (PACT) AI Stock Analysis

• Market Cap: kr3.04B
• Dividend Yield: 2.13%
• Average Volume (3M): 57.72K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.87
• 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: kr123.00 ▲(10.61% Upside)

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 Revenue / Business Model

Subscription and managed-service revenue provides predictable, recurring cash flows and higher customer retention. Over the medium term this stabilizes revenues, supports margin visibility, enables multi-year contracts and upsell of cloud/data services, and underpins reinvestment plans.

Strategic Partnerships & Solution Breadth

Long-term alliances with major tech providers expand the company’s solution ecosystem, accelerate integration, and strengthen credibility in enterprise tenders. These partnerships create a durable competitive edge for complex, regulated clients and support scalable delivery across verticals.

Manageable Leverage / Balance Sheet

Debt-to-equity near 0.55 and material improvement versus earlier years reduce financial distress risk and preserve financing optionality. Manageable leverage supports continued investment in services, selective M&A and operational flexibility through modest economic cycles.

Negative Factors

Top-Line Weakness

A sustained revenue decline undermines scale economics and can erode market position if competitors grow faster. Over months this compresses operating leverage, constrains capacity for sales and R&D investment, and makes it harder to regain momentum in target verticals.

Margin Compression

Falling net and operating margins indicate weaker pricing power or rising costs, reducing retained earnings and capital available for growth. Persistently lower margins increase sensitivity to cost shocks and limit strategic flexibility for hiring, product development and margin recovery initiatives.

Weaker Free Cash Flow / Cash Conversion

A sharp YoY drop in free cash flow and softer operating cash flow point to weakening cash conversion of earnings. Over the medium term this limits internal funding for capex, dividends or M&A, may necessitate higher external financing, and reduces resilience to cyclical stress.

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: 111.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 111.2 is below the 20-day moving average (MA) of 111.24, above the 50-day MA of 106.76, and above the 200-day MA of 104.18, indicating a bullish trend. The MACD of 2.30 indicates Positive momentum. The RSI at 63.16 is Neutral, neither overbought nor oversold. The STOCH value of 66.19 is Neutral, 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
SOF.B	71 Outperform	kr1.15B	15.18	27.44%	6.29%	4.00%	-12.08%
EXS	68 Neutral	kr2.08B	28.31	15.90%	1.13%	10.92%	-2.56%
PACT	67 Neutral	kr3.04B	19.31	14.35%	2.13%	-4.36%	-31.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KNOW	56 Neutral	kr3.32B	34.00	2.38%	2.03%	-9.85%	-38.24%
B3	55 Neutral	kr396.36M	146.30	1.19%	―	13.21%	-97.19%
DUST	46 Neutral	kr2.62B	-0.55	―	―	-5.00%	-1757.14%

Proact IT Group AB Corporate Events

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.

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.

The most recent analyst rating on (SE:PACT) stock is a Hold with a SEK100.00 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 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.

The most recent analyst rating on (SE:PACT) stock is a Hold with a SEK103.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.