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

• Market Cap: kr1.20B
• Dividend Yield: 5.84%
• Average Volume (3M): 21.36K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.03
• Revenue Growth: 3.66%
• EPS Growth: -2.31%
• Country: SE
• Employees: 445
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.29
• Shares Outstanding: 49,632,805
• 10 Day Avg. Volume: 20,701
• 30 Day Avg. Volume: 21,358
• PEG Ratio: -5.77
• Price to Book (P/B): 4.01
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 10.75
• 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: kr24.95
• Price Target Upside: 9.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: kr25.00 ▲(9.65% Upside)

Softronic AB's strong financial performance, characterized by consistent revenue growth and effective cash flow management, is the primary driver of its stock score. The valuation is attractive with a reasonable P/E ratio and a high dividend yield, enhancing its appeal to income-focused investors. Technical indicators suggest a neutral market sentiment, which slightly tempers the overall score.

Softronic AB Class B Business Overview & Revenue Model

Company Description

Softronic AB (publ) provides IT and management services primarily in Sweden. It offers AI, AML, automation, business development, case management system, cloud, customer relationship management, ERP systems, management, Microsoft, operation, information security, vulnerability analyses, UX/design, web, and system solutions, as well as consultancy services. The company was incorporated in 1984 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Softronic 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. Effective cash flow management further enhances financial stability, positioning the company well for future growth. Despite minor cost pressures affecting EBITDA margins, the overall outlook remains favorable.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	847.50M	842.40M	837.52M	797.12M	786.52M	728.00M
Gross Profit	140.80M	154.07M	153.22M	144.30M	144.45M	139.94M
EBITDA	112.80M	118.54M	118.50M	105.73M	117.04M	111.04M
Net Income	80.20M	82.32M	84.04M	68.22M	73.71M	66.85M
Balance Sheet
Total Assets	487.70M	450.86M	459.41M	433.85M	428.03M	515.60M
Cash, Cash Equivalents and Short-Term Investments	159.60M	135.43M	107.90M	117.00M	130.61M	199.78M
Total Debt	21.00M	24.16M	32.80M	45.92M	9.40M	23.39M
Total Liabilities	175.60M	154.61M	174.43M	180.28M	171.63M	174.62M
Stockholders Equity	312.10M	296.25M	284.98M	253.57M	256.40M	340.98M
Cash Flow
Free Cash Flow	126.00M	110.40M	55.50M	72.82M	109.29M	102.92M
Operating Cash Flow	126.50M	114.37M	56.20M	80.61M	111.27M	103.08M
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 Price: 22.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 22.8 is below the 20-day moving average (MA) of 23.10, below the 50-day MA of 23.24, and above the 200-day MA of 22.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOF.B	73 Outperform	kr1.20B	14.96	32.08%	5.84%	3.66%	-2.31%
CAG	71 Outperform	842.19M	17.67	15.07%	3.49%	-3.83%	-6.96%
EXS	67 Neutral	1.89B	31.09	12.50%	1.25%	8.66%	-26.12%
B3	67 Neutral	476.54M	5.89	36.23%	6.69%	14.67%	173.89%
PACT	60 Neutral	2.52B	14.80	15.65%	2.53%	-2.05%	-24.44%
KNOW	56 Neutral	2.95B	36.37	2.01%	3.48%	-11.20%	-55.97%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%