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Sinch AB
(SINCH)
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Rating:61Neutral
Price Target:
kr47.00
▲(90.98% Upside)
Action:Reiterated
Date:07/23/26
The score is driven primarily by improving fundamentals and especially strong cash flow, reinforced by an earnings call that points to stronger H2 and continued capital returns via buybacks. This is tempered by still-thin profitability and low gross margin, a mixed/neutral technical setup, and a stretched valuation (high P/E) that increases execution risk if growth and margin normalization do not materialize.
Positive Factors
Strong cash generation
Sinch's sizable trailing‑12 free and operating cash flow provide a durable funding base for reinvestment, M&A integration, and shareholder returns. Reliable cash conversion reduces reliance on external financing, supports margin normalization efforts, and increases strategic flexibility over the next 2–6 months.
Negative Factors
Low gross and net margins
Persistently low gross margin constrains the company's ability to fund operating leverage and absorption of fixed costs. Thin net margins mean modest retained earnings, limiting internal investment capacity and increasing reliance on cash generation and execution to reach targeted EBITDA margins sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sinch's sizable trailing‑12 free and operating cash flow provide a durable funding base for reinvestment, M&A integration, and shareholder returns. Reliable cash conversion reduces reliance on external financing, supports margin normalization efforts, and increases strategic flexibility over the next 2–6 months.
Read all positive factors
Sinch AB (SINCH) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr31.77B
Dividend YieldN/A
Average Volume (3M)2.55M
Price to Earnings (P/E)72.7
Beta (1Y)1.14
Revenue Growth-6.20%
EPS GrowthN/A
CountrySE
Employees3,579
SectorCommunication Services
Sector Strength97
IndustrySoftware - Services
Share Statistics
EPS (TTM)0.61
Shares Outstanding718,854,860
10 Day Avg. Volume2,007,619
30 Day Avg. Volume2,545,140
Financial Highlights & Ratios
PEG Ratio-1.17
Price to Book (P/B)1.16
Price to Sales (P/S)0.97
P/FCF Ratio18.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr31.50Price Target Upside28.00% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.12
Revenue Forecast (FY)kr27.46B
Sinch AB Business Overview & Revenue Model
Company Description
Sinch AB (publ) delivers sophisticated cloud-based communication services and solutions to enterprises and mobile network operators worldwide. Established in 2008 and headquartered in Stockholm, Sweden, the company maintains a significant global p...
How the Company Makes Money
Sinch makes money by charging businesses for usage of its communications services delivered over its cloud platform. The core revenue model is largely usage-based: customers pay per message, per voice minute, or per transaction depending on the pr...
Sinch AB Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presents several strong positives: clear acceleration in organic revenue (6%), robust Americas and API performance (Americas revenue +9%, Americas GP +10%, API mid‑teens growth), a high‑growth, high‑margin e‑mail business, strong cash generation (SEK 751m FCF, 61% cash conversion), active buybacks and reduced integration costs. Counterbalancing these are region‑specific headwinds in APAC (India provision, APAC GP -18%) and EMEA legacy product churn that compressed GP and margins, plus a notable tax provision and temporary FX effects on gross margin. Overall the strengths—particularly the large, profitable Americas engine, e‑mail growth, and strong cash flow—outweigh the localized challenges.Positive Updates
Accelerated Organic Revenue Growth
Organic revenue growth accelerated to 6% in Q2 2026, driven primarily by the Americas and the API product category.
Negative Updates
APAC Revenue and GP Weakness
APAC delivered negative organic results: organic GP fell ~18% in the quarter. India is the primary driver of APAC weakness, including a SEK 17 million revenue provision related to an ongoing customer dispute (disclosed also in Q1). Australia saw margin compression in applications.
Read all updates
Q2-2026 Updates
Positive
Negative
Accelerated Organic Revenue Growth
Organic revenue growth accelerated to 6% in Q2 2026, driven primarily by the Americas and the API product category.
Read all positive updates
Company Guidance
Management guided that H2 2026 should be stronger than H1 on organic revenue and organic gross profit (Q2: organic revenue +6%, organic GP +2%), driven by Americas (revenue +9%, GP +10%, APIs mid‑teens organic growth) while EMEA and APAC lag (EMEA GP ‑4%, APAC GP ‑18%; India included a SEK 17m revenue provision). They reiterated an adjusted EBITDA margin target of 12–14% and said they will prioritize growth investments while remaining in that range; Q2 adjusted EBITDA was essentially flat sequentially (‑0.2 ppt, ‑0.6 ppt YoY) with adjusted OpEx +1% and integration costs down ~SEK 30m (‑2/3 YoY). Cash metrics were strong: free cash flow SEK 751m in Q2, rolling‑12 cash conversion 61% (above guidance), net leverage 1.9 (down from 2.0), and share buybacks of 4m shares in Q2 (15% repurchased since program start) with a new authorization to repurchase up to 10% through AGM 2027. They flagged temporary gross‑margin headwinds (gross margin down 1.6 ppt YoY — ~‑1 ppt from COGS pass‑through and ~‑0.5 ppt FX) but expect margins to normalize; product metrics highlighted e‑mail scale and quality (99.99% uptime, 97% delivery, 1.6m e‑mails/min ≈ 850bn/year, volumes +21%).Sinch AB Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.77B | 27.08B | 28.71B | 28.75B | 27.72B | 16.18B |
| Gross Profit | 3.35B | 2.81B | 10.07B | 2.51B | 8.81B | 3.93B |
| EBITDA | 4.12B | 3.53B | -3.20B | 3.10B | -1.96B | 1.96B |
| Net Income | 460.00M | 217.00M | -6.41B | 42.00M | -4.94B | 907.00M |
Balance Sheet | ||||||
| Total Assets | 41.67B | 40.15B | 48.00B | 53.13B | 57.28B | 57.08B |
| Cash, Cash Equivalents and Short-Term Investments | 750.00M | 553.00M | 1.08B | 1.01B | 2.17B | 1.87B |
| Total Debt | 8.16B | 6.91B | 7.09B | 2.36B | 11.34B | 12.52B |
| Total Liabilities | 18.69B | 17.41B | 18.98B | 19.47B | 22.85B | 23.03B |
| Stockholders Equity | 22.98B | 22.74B | 29.02B | 33.66B | 34.43B | 34.05B |
Cash Flow | ||||||
| Free Cash Flow | 2.16B | 1.45B | 2.35B | 1.16B | 1.86B | 150.37M |
| Operating Cash Flow | 2.77B | 2.10B | 2.94B | 1.79B | 2.51B | 328.71M |
| Investing Cash Flow | -620.00M | -650.00M | -604.00M | -649.00M | -691.00M | -29.06B |
| Financing Cash Flow | -1.86B | -1.89B | -2.23B | -2.34B | -1.51B | 26.45B |
Sinch AB Technical Analysis
Positive
24.61
Price Trends
38.88
Positive
34.24
Positive
30.96
Positive
Market Momentum
1.01
Negative
69.89
Neutral
87.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SINCH, the sentiment is Positive. The current price of 24.61 is below the 20-day moving average (MA) of 39.70, below the 50-day MA of 38.88, and below the 200-day MA of 30.96, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 69.89 is Neutral, neither overbought nor oversold. The STOCH value of 87.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SINCH.
Sinch AB Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | kr113.91B | 11.24 | 42.66% | 5.14% | 1.82% | 142.95% | |
61 Neutral | kr31.77B | 72.68 | 1.99% | ― | -6.20% | ― | |
61 Neutral | kr167.15B | 34.89 | 9.48% | 4.49% | -4.06% | 14.70% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
46 Neutral | kr308.28M | -1.51 | -32.07% | ― | -1.41% | -3913.83% | |
41 Neutral | kr155.48M | -0.95 | ― | ― | -17.01% | -209.44% |
* Communication Services Sector Average
SE:SINCH
Sinch AB
44.19
13.09
42.09%
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Sinch AB Corporate Events
Sinch Updates Share Count After Incentive Program Option Exercise
Jul 31, 2026
Sinch AB has updated its share capital structure, confirming that the total number of shares and votes now stands at 718,854,863 following the issuance of 143,379 new shares in July. The new shares were created through the exercise of stock option...
Sinch Q2 Growth Led by Americas as AI Partnerships and Leadership Changes Reshape Strategy
Jul 22, 2026
Sinch AB reported second-quarter organic net sales growth of 6 percent to SEK 6,866 million, driven primarily by strong performance in the Americas, where gross profit grew 10 percent on its API platform and efficiency gains in U.S. network voice....
Sinch Launches Share Buyback of Up to 10% of Outstanding Stock
Jul 22, 2026
Sinch AB’s board has approved a share buyback program authorizing repurchases of up to 10% of the company’s outstanding shares, currently equal to 71,885,486 shares, under a mandate granted by shareholders at the May 2026 annual meetin...
Sinch Adjusts Share Capital After Option Exercises and Share Cancellations
Jun 30, 2026
Sinch AB, a Stockholm-based, Nasdaq-listed provider of intelligent customer communications across messaging, email and voice, serves more than 200,000 customers and handles over 900 billion interactions a year. The company reported 2025 net sales ...
Sinch Cancels Treasury Shares and Relies on Swap to Support Incentive Plans
Jun 22, 2026
Sinch AB has cancelled 55,468,649 previously repurchased shares following approval at the 2026 Annual General Meeting, reducing its holding of own shares to zero and eliminating its direct stake in the total share capital and voting rights. The mo...
Sinch Names CFO Jonas Dahlberg Acting CEO to Steer Next Growth Phase
Jun 8, 2026
Sinch AB has appointed Chief Financial Officer Jonas Dahlberg as acting chief executive, effective immediately, as part of a planned leadership transition to support its next phase of execution and growth. Dahlberg, a former CEO and CFO of Transco...
Sinch names Sophie Cheng Chief Marketing Officer to drive AI-focused growth
Jun 1, 2026
Sinch AB has appointed Sophie Cheng as Chief Marketing Officer, elevating her to the Global Leadership Team and placing her in direct reporting line to CEO Laurinda Pang, following the transition of former CMO Jonathan Bean to a new executive role...
Sinch AGM Arms Board With Broader Capital Tools, Freezes Dividend for 2025
May 21, 2026
Sinch AB’s 2026 annual general meeting in Stockholm approved the 2025 financial statements, opted against paying a dividend, and granted discharge from liability to the board, CEO and deputy CEO, while re-electing the entire six-member board...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.