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

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SE:SOF.B

Softronic AB Class B

(Frankfurt:SOF.B)

Rating:80Outperform
Price Target:
kr28.00
▲(18.39%Upside)
Softronic AB's strong financial performance is the most significant factor, driven by solid revenue growth, profitability, and cash flow management. Technical analysis supports a bullish outlook, though caution is advised due to approaching overbought levels. The reasonable valuation and high dividend yield further enhance the stock's attractiveness.

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 information technology company that specializes in providing IT and management consulting services. Founded in 1984 and headquartered in Stockholm, Softronic operates primarily within the sectors of digital transformation, system development, and IT operations. The company delivers its services across various industries, including healthcare, finance, and public administration, with a focus on offering sustainable and innovative solutions to enhance operational efficiency for its clients.
How the Company Makes MoneySoftronic AB generates revenue through a combination of consulting services, IT operations, and system development projects. The company earns income by providing tailored IT solutions that cater to the specific needs of its clients, which include both private and public sector organizations. Key revenue streams include long-term service agreements, project-based consulting fees, and maintenance contracts. Additionally, Softronic partners with major technology vendors to enhance its service offerings and expand its market reach, thereby contributing to its overall revenue generation.

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 Price23.65
Price Trends
50DMA
22.59
Positive
100DMA
21.96
Positive
200DMA
22.00
Positive
Market Momentum
MACD
0.39
Negative
RSI
54.08
Neutral
STOCH
68.18
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 23.65 is above the 20-day moving average (MA) of 23.02, above the 50-day MA of 22.59, and above the 200-day MA of 22.00, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 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
80
Outperform
kr1.23B15.1532.08%5.77%3.66%-2.31%
75
Outperform
kr1.82B30.5313.08%1.30%8.66%-26.12%
70
Neutral
kr2.26B27.3518.36%0.84%4.59%
69
Neutral
kr498.41M6.1245.14%6.40%6.75%119.93%
57
Neutral
$901.02M11.57-16.27%2.26%10.33%-39.65%
47
Neutral
€888.41M-15.28%6.89%-106.81%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:SOF.B
Softronic AB Class B
23.40
3.41
17.04%
SE:IAR.B
IAR Systems Group AB
178.60
15.78
9.69%
SE:B3
B3 Consulting Group AB
54.70
-25.94
-32.17%
SE:BIM
BIMobject AB
6.31
2.36
59.75%
SE:EXS
Exsitec Holding AB
135.00
-48.29
-26.35%
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: Jul 18, 2025