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Softronic AB Class B (SE:SOF.B)
:SOF.B

Softronic AB Class B (SOF.B) AI Stock Analysis

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Softronic AB Class B

(Frankfurt:SOF.B)

Rating:83Outperform
Price Target:
kr26.00
▲(15.56%Upside)
Softronic AB demonstrates robust financial performance, characterized by consistent revenue growth and strong cash flow management. The technical analysis supports a bullish outlook with positive trends across major indicators. Valuation metrics are favorable, with a reasonable P/E ratio and an attractive dividend yield, further enhancing the stock's appeal. The absence of earnings call data and notable corporate events means the score heavily relies on strong financials and technical indicators.

Softronic AB Class B (SOF.B) vs. iShares MSCI Sweden ETF (EWD)

Softronic AB Class B Business Overview & Revenue Model

Company DescriptionSoftronic AB Class B (SOF.B) is a Swedish IT consultancy firm specializing in providing digital solutions and services. The company's core offerings include consulting, development, and management services across various sectors such as finance, healthcare, and public administration. Softronic is dedicated to leveraging technology to help its clients improve efficiency, drive innovation, and achieve digital transformation.
How the Company Makes MoneySoftronic AB generates revenue primarily through its consultancy services, which involve advising clients on IT strategy and digital transformation. The company also earns income from developing custom software solutions tailored to meet specific client needs, as well as from ongoing management and maintenance of IT systems. Key revenue streams include project-based contracts and long-term service agreements with clients in diverse industries. Strategic partnerships with technology providers and a focus on emerging technologies also contribute to the company's earnings by enhancing its service offerings and expanding its market reach.

Softronic AB Class B Financial Statement Overview

Summary
Softronic AB displays a strong financial profile, marked by consistent revenue growth, solid profitability margins, and a robust balance sheet. The company's effective cash flow management further enhances its financial stability, making it well-positioned for future growth. Despite minor cost pressures affecting EBITDA margins, the overall outlook remains favorable, with a sound capital structure and strong operational cash flows supporting its strategic initiatives.
Income Statement
82
Very Positive
Softronic AB has demonstrated consistent revenue growth, with a notable increase from 2022 to TTM, indicating strong market demand. The gross profit margin is stable, reflecting efficient cost management. However, the slight decline in EBITDA margin from 2023 suggests potential cost pressures. Overall, the company maintains solid profitability metrics, contributing to a strong income statement performance.
Balance Sheet
78
Positive
The company exhibits a healthy balance sheet with a strong equity position and a low debt-to-equity ratio, indicating financial stability and low leverage risk. The equity ratio is robust, showcasing a well-capitalized structure. However, the decrease in cash and cash equivalents over the years could impact liquidity, warranting closer monitoring.
Cash Flow
85
Very Positive
Softronic AB has demonstrated impressive cash flow management, with operating cash flow consistently exceeding net income, indicating high-quality earnings. The significant growth in free cash flow, especially in TTM, underscores effective capital expenditure control. The company's ability to generate substantial free cash flow relative to net income is a positive indicator of financial health.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue847.50M842.40M837.52M797.12M786.52M728.00M
Gross Profit140.80M154.07M153.22M144.30M144.45M139.94M
EBITDA112.80M118.54M118.50M105.73M117.04M111.04M
Net Income80.20M82.32M84.04M68.22M73.71M66.85M
Balance Sheet
Total Assets487.70M450.86M459.41M433.85M428.03M515.60M
Cash, Cash Equivalents and Short-Term Investments159.60M135.43M107.90M117.00M130.61M199.78M
Total Debt21.00M13.15M32.80M45.92M9.40M23.39M
Total Liabilities175.60M154.61M174.43M180.28M171.63M174.62M
Stockholders Equity312.10M296.25M284.98M253.57M256.40M340.98M
Cash Flow
Free Cash Flow126.00M110.40M55.50M72.82M109.29M102.92M
Operating Cash Flow126.50M114.37M56.20M80.61M111.27M103.08M
Investing Cash Flow-4.30M-3.97M-700.00K-8.19M-2.38M-559.00K
Financing Cash Flow-83.00M-82.87M-64.60M-86.03M-178.06M-19.92M

Softronic AB Class B Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.50
Price Trends
50DMA
22.10
Positive
100DMA
21.75
Positive
200DMA
21.81
Positive
Market Momentum
MACD
0.09
Positive
RSI
55.45
Neutral
STOCH
59.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SOF.B, the sentiment is Positive. The current price of 22.5 is above the 20-day moving average (MA) of 22.41, above the 50-day MA of 22.10, and above the 200-day MA of 21.81, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 59.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SOF.B.

Softronic AB Class B Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
kr1.19B14.7825.51%56.89%1.57%-1.85%
SEEXS
75
Outperform
kr1.82B29.1913.40%1.29%9.87%-14.05%
70
Neutral
kr1.37B16.5918.36%13.32%4.59%
SEB3
69
Neutral
kr561.28M6.4742.33%5.68%6.75%119.93%
57
Neutral
$1.15B27.35-27.06%10.34%10.83%-5.57%
SEBIM
46
Neutral
kr894.11M-15.28%6.89%-106.81%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:SOF.B
Softronic AB Class B
22.60
1.20
5.58%
SE:IAR.B
IAR Systems Group AB
178.00
2.35
1.34%
SE:B3
B3 Consulting Group AB
64.30
-12.23
-15.98%
SE:BIM
BIMobject AB
6.27
2.37
60.77%
SE:EXS
Exsitec Holding AB
136.00
-38.91
-22.25%
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.Date of analysis: May 16, 2025