Sinch AB (SE:SINCH)
:SINCH
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Sinch AB
(SINCH)
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Rating:54Neutral
Price Target:
kr28.00
▲(13.77% Upside)
Action:ReiteratedDate:02/20/26
The score is held back primarily by weak technicals (downtrend across key moving averages) and a demanding valuation (high P/E). Financial performance is mixed—stronger cash generation and manageable leverage, but volatile earnings and soft recent revenue trends. Earnings-call commentary is constructive with reiterated targets, margin progress, and capital returns, though tempered by FX and regional headwinds.
Positive Factors
Consistent Free Cash Flow
Reliable free cash flow generation and high seasonal cash conversion give Sinch durable liquidity to fund product investments, sustain buybacks, and maintain credit flexibility. This supports deleveraging targets and strategic capital allocation even if revenue growth is uneven.
Negative Factors
Revenue Plateau and Recent Declines
Top‑line softness after prior expansion signals structural demand or mix challenges. Sustained plateaus limit scale benefits, constrain margin upside, and make profitability targets harder to lock in absent renewed organic growth or sizable new platform contracts.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Free Cash Flow
Reliable free cash flow generation and high seasonal cash conversion give Sinch durable liquidity to fund product investments, sustain buybacks, and maintain credit flexibility. This supports deleveraging targets and strategic capital allocation even if revenue growth is uneven.
Read all positive factors
Sinch AB (SINCH) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr21.51B
Dividend YieldN/A
Average Volume (3M)2.55M
Price to Earnings (P/E)121.0
Beta (1Y)1.04
Revenue Growth-5.68%
EPS GrowthN/A
CountrySE
Employees3,557
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.82
Shares Outstanding771,740,900
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
kr24.50Price Target Upside-0.45% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.55
Revenue Forecast (FY)kr26.42B
Sinch AB Business Overview & Revenue Model
Company Description
Sinch AB (publ) provides cloud communications services and solutions for enterprises and mobile operators in Sweden, France, the United Kingdom, Germany, Brazil, India, Singapore, other European countries, the United States, and internationally. I...
How the Company Makes Money
Sinch makes money by charging businesses for using its communications APIs and related platform services. The core revenue model is usage-based: customers pay per message (e.g., SMS and other messaging types), per voice minute/call, and for email ...
Sinch AB Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial trajectory: Sinch delivered record profitability, margin expansion, continued organic gross profit growth, strong performance in the Americas and API platform, and significant momentum in next-generation messaging (RCS). These positives were tempered by meaningful FX headwinds, ongoing regional pressures (EMEA fixed-price contract phase-out and APAC challenges), a prior tax provision, and lower full-year cash conversion versus the prior year. Overall, management emphasized disciplined execution, active capital returns (buybacks), and strategic positioning for AI-driven growth.Positive Updates
Record Profitability and Margin Expansion
Adjusted EBITDA margin reached 14% in Q4 (up 1 percentage point year-over-year) and gross margin expanded by 2 percentage points to 35%. Management stated this is the highest gross margin and EBITDA delivered to date and that the top end of the midterm EBITDA target (12%–14%) has been achieved ahead of schedule.
Negative Updates
Pronounced FX Headwinds
Foreign exchange had a significant negative impact in Q4: approximately -10% on net sales and -11% on gross profit, materially suppressing reported top-line results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Profitability and Margin Expansion
Adjusted EBITDA margin reached 14% in Q4 (up 1 percentage point year-over-year) and gross margin expanded by 2 percentage points to 35%. Management stated this is the highest gross margin and EBITDA delivered to date and that the top end of the midterm EBITDA target (12%–14%) has been achieved ahead of schedule.
Read all positive updates
Company Guidance
The company reiterated its mid‑term guidance and near‑term outlook: an organic gross profit growth target of 7–9% y/y by end‑2027 and an adjusted EBITDA margin target of 12–14% (noting Q4 adjusted EBITDA margin is already 14%); cash conversion guidance remains 40–50% (FY cash conversion 40%, Q4 84%, free cash flow SEK 1.5bn; multi‑year average ~50%); a leverage target below 2.5x (current net leverage ~1.6x); and active capital allocation including repurchasing 8.8% of shares to date, a Board proposal to cancel treasury shares to enable up to a further 10% buybacks until the AGM, and an illustrative capability to buy back ~10% of shares per year given historical ~50% FCF conversion (SEK 62m shares bought for ~SEK 1.9bn plus SEK 364m via swap; SEK 3.7bn undrawn credit available). Management also guided that Q1/H1 will show similar trends to H2 2025 (continued momentum in the Americas and API platform but ongoing headwinds in EMEA/APAC and phased‑out fixed‑price contracts) and noted a SEK 700m tax provision in Q4 with an estimated cash out of ~SEK 200m this year.Sinch AB Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.08B | 28.71B | 28.75B | 27.72B | 16.18B |
| Gross Profit | 2.81B | 10.07B | 2.51B | 8.81B | 3.93B |
| EBITDA | 3.53B | -3.20B | 3.10B | -1.96B | 1.96B |
| Net Income | 217.00M | -6.41B | 42.00M | -4.94B | 907.00M |
Balance Sheet | |||||
| Total Assets | 40.15B | 48.00B | 53.13B | 57.28B | 57.08B |
| Cash, Cash Equivalents and Short-Term Investments | 553.00M | 1.08B | 1.01B | 2.17B | 1.87B |
| Total Debt | 6.91B | 7.09B | 2.36B | 11.34B | 12.52B |
| Total Liabilities | 17.41B | 18.98B | 19.47B | 22.85B | 23.03B |
| Stockholders Equity | 22.74B | 29.02B | 33.66B | 34.43B | 34.05B |
Cash Flow | |||||
| Free Cash Flow | 1.45B | 2.35B | 1.16B | 1.86B | 150.37M |
| Operating Cash Flow | 2.10B | 2.94B | 1.79B | 2.51B | 328.71M |
| Investing Cash Flow | -650.00M | -604.00M | -649.00M | -691.00M | -29.06B |
| Financing Cash Flow | -1.89B | -2.23B | -2.34B | -1.51B | 26.45B |
Sinch AB Technical Analysis
Positive
24.61
Price Trends
23.51
Positive
26.07
Positive
28.47
Negative
Market Momentum
0.81
Negative
69.13
Neutral
69.41
Neutral
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 above the 20-day moving average (MA) of 24.34, above the 50-day MA of 23.51, and below the 200-day MA of 28.47, indicating a neutral trend. The MACD of 0.81 indicates Negative momentum. The RSI at 69.13 is Neutral, neither overbought nor oversold. The STOCH value of 69.41 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | kr130.77B | 5.29 | 21.35% | 4.15% | 1.36% | 158.44% | |
67 Neutral | kr184.28B | 28.50 | 10.93% | 5.14% | -9.14% | -50.65% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | kr21.51B | 121.04 | 0.88% | ― | -5.68% | ― | |
42 Neutral | kr177.07M | -1.26 | ― | ― | -18.47% | -172.35% | |
41 Neutral | kr216.47M | -0.70 | 0.35% | ― | 4.48% | -1231.05% |
* Communication Services Sector Average
SE:SINCH
Sinch AB
27.87
5.26
23.26%
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Sinch AB Corporate Events
Sinch Sets Out Global Ambitions in Customer Communications Platform
Apr 23, 2026
Sinch AB positions itself as a global provider of intelligent and secure communications infrastructure that underpins customer engagement for businesses. By emphasizing scalable, trusted solutions for connecting every business with every customer ...
Sinch Sets May 2026 AGM With Expanded Voting Options for Shareholders
Apr 15, 2026
Sinch AB has called its annual general meeting for 21 May 2026 at its Stockholm headquarters, giving shareholders the option to participate in person, by proxy or through postal voting. The notice details the record date for share registration, de...
Sinch Updates Share Count After Employee Stock Option Exercise
Mar 31, 2026
Sinch AB has modestly expanded its share capital, confirming that the total number of shares and votes now stands at 771,740,885 following the March issuance of 39,604 shares. The new shares were created through the exercise of stock options under...
Sinch Share Buyback Pushes Treasury Holding Above Swedish 5% Threshold
Mar 20, 2026
Sinch AB has repurchased 1,240,000 of its own shares, lifting its treasury holding to 38,907,970 shares, or 5.04 percent of the company’s total share capital. The transaction triggered a regulatory flagging requirement in Sweden, as the hold...
Sinch Adjusts Share Count After Option Exercises and Large Cancellation
Feb 27, 2026
Sinch AB, a global provider of intelligent customer communications platforms for messaging, email and voice, reported 2025 net sales of USD 3 billion and employs over 4,000 staff in more than 60 countries, with its shares listed on Nasdaq Stockhol...
Sinch Restarts Share Buyback to Lift Capital Efficiency and Shareholder Value
Feb 23, 2026
Sinch AB’s board has resolved to resume repurchasing its own shares under an existing shareholder authorization that allows the company to hold up to 10% of its outstanding stock at any time. The decision follows a previous buyback programme...
Sinch Cuts Treasury Share Holding After Large-Scale Share Cancellation
Feb 23, 2026
Sinch AB has reduced its holding of own shares to 4,150,000, representing 0.54 percent of its total shares and votes, after cancelling 74,211,294 repurchased shares following an Extraordinary General Meeting resolution. The company’s stake i...
Sinch Cancels 8.8% of Shares in Capital Structure Optimization
Feb 19, 2026
Sinch AB’s extraordinary general meeting approved the cancellation of 74,211,294 previously repurchased shares, representing about 8.78% of its total shares, to increase flexibility in capital allocation and give the board renewed capacity t...
Sinch Delivers Record Profitability and Expands AI Partnerships Amid Share Buybacks
Feb 17, 2026
Sinch AB closed 2025 with record-high profitability, lifting its adjusted EBITDA margin into the 12–14 percent range it had targeted for 2027, despite modest organic revenue growth and significant currency headwinds. Gross profit rose organi...
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.