Transtema Group AB (TRANS) AI Stock Analysis

• Market Cap: kr371.53M
• Dividend Yield: N/A
• Average Volume (3M): 111.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 10.36%
• EPS Growth: -100.68%
• Country: SE
• Employees: 1,345
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.19
• Shares Outstanding: 42,951,157
• 10 Day Avg. Volume: 92,478
• 30 Day Avg. Volume: 111,771
• PEG Ratio: 0.63
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 3.89
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: kr7.50 ▼(-18.48% Downside)

Transtema Group AB's overall stock score is primarily impacted by its mixed financial performance, with improved revenue growth but significant profitability challenges. The technical analysis indicates bearish momentum, and the valuation is unattractive due to a highly negative P/E ratio. These factors collectively result in a low overall score, highlighting the need for the company to address profitability and leverage issues to improve its investment appeal.

Positive Factors

Revenue Growth

Moderate revenue growth indicates that the company is expanding its market reach and maintaining demand for its services, which is crucial for long-term sustainability.

Operational Efficiency

Improved EBIT and EBITDA margins suggest enhanced operational efficiency, which can lead to better profitability and competitive positioning over time.

Stable Capital Structure

A stable capital structure with a balanced debt-to-equity ratio supports financial resilience and the ability to invest in growth opportunities.

Negative Factors

Profitability Challenges

Low net profit margins indicate difficulties in converting revenue into profit, which could hinder long-term financial health and shareholder returns.

Decreased Cash Flow

A significant decrease in free cash flow raises concerns about the company's ability to generate cash, impacting its capacity to fund operations and growth.

Low Return on Equity

Low return on equity suggests inefficiencies in generating returns for shareholders, which could affect investor confidence and capital attraction.

Transtema Group AB Business Overview & Revenue Model

Company Description

Transtema Group AB provides services and solutions to customers in the areas of networking and communications in Sweden. It offers design, construction, documentation, maintenance, and other consulting services for communications networks as well as data storage, networking, and IoT solutions. The company offers operation and maintenance services, including network monitoring, consulting, support, and field services; communication network, including fiber, mobile, copper mesh, and real estate network, IoT, wireless networks, mobile indoor coverage, network equipment; electricity, telecommunications and security, including electricity meter, charging stations, telesystem, and electrical installations; and data centers, site services. The company was founded in 1997 and is headquartered in Mölndal, Sweden.

How the Company Makes Money

Transtema Group AB generates revenue through a diverse range of services primarily focused on telecommunications and IT solutions. The company earns income from contracts related to the design, installation, and maintenance of network infrastructures, including fiber-optic networks and other communication systems. Additionally, significant revenues come from consultancy services and managed IT solutions for various clients, which help businesses optimize their digital operations. Key revenue streams include long-term service agreements with municipalities and private enterprises, as well as project-based contracts that deliver tailored solutions. Partnerships with major telecommunications companies and governmental bodies further bolster their revenue, as they often collaborate on large-scale infrastructure projects and public sector initiatives.

Transtema Group AB Financial Statement Overview

Summary

Transtema Group AB demonstrates a mixed financial performance. Revenue growth and operational efficiency have improved, but profitability challenges remain, particularly with negative net income in the TTM. The balance sheet shows increased leverage, which could be a concern if not managed effectively. Cash flow generation is strong, but the conversion of earnings into cash needs attention.

Income Statement

Transtema Group AB shows a stable gross profit margin with a slight decline in net profit margin in the TTM period. Revenue growth has been positive, indicating a recovery from previous declines. However, net income has been negative in the TTM, impacting overall profitability. The EBIT and EBITDA margins have improved, suggesting operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio has increased slightly, indicating higher leverage, which could pose a risk if not managed properly. Return on equity has decreased significantly in the TTM, reflecting challenges in generating returns for shareholders. The equity ratio remains stable, showing a balanced asset structure.

Cash Flow

Free cash flow growth has been strong in the TTM, indicating improved cash generation capabilities. However, the operating cash flow to net income ratio is low, suggesting potential issues in converting earnings into cash. The free cash flow to net income ratio is moderate, reflecting a reasonable cash conversion rate.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.49B	2.69B	2.46B	1.69B	1.40B
Gross Profit	1.40B	1.34B	1.40B	1.28B	1.11B	824.95M
EBITDA	208.81M	154.24M	377.04M	278.99M	141.68M	126.45M
Net Income	-53.00K	-9.30M	132.09M	128.77M	88.45M	3.87M
Balance Sheet
Total Assets	1.59B	1.64B	1.71B	1.60B	859.80M	758.36M
Cash, Cash Equivalents and Short-Term Investments	78.49M	126.06M	67.11M	93.30M	177.82M	64.88M
Total Debt	559.22M	414.51M	355.84M	316.33M	172.68M	195.25M
Total Liabilities	1.05B	1.09B	1.16B	1.21B	608.44M	598.29M
Stockholders Equity	544.77M	556.47M	558.19M	387.65M	250.43M	159.52M
Cash Flow
Free Cash Flow	35.61M	161.95M	12.56M	98.04M	196.29M	149.68M
Operating Cash Flow	63.36M	185.56M	27.22M	109.17M	210.64M	161.13M
Investing Cash Flow	-106.05M	-113.17M	-62.69M	-208.46M	-13.98M	14.13M
Financing Cash Flow	57.15M	-14.37M	9.05M	14.68M	-83.90M	-128.50M

Transtema Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TRANS, the sentiment is Neutral. The current price of 9.2 is above the 20-day moving average (MA) of 8.33, above the 50-day MA of 8.81, and below the 200-day MA of 12.68, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 53.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:TRANS.

Transtema Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVT.B	69 Neutral	kr464.26M	27.00	35.19%	1.22%	34.25%	57.77%
TALK	69 Neutral	kr122.49M	7.62	115.17%	―	0.44%	80.01%
OVZON	61 Neutral	kr4.86B	-194.47	-1.33%	―	77.67%	68.35%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ELTEL	56 Neutral	kr1.44B	106.37	0.72%	―	-6.38%	―
TRANS	48 Neutral	kr371.53M	-3,760.87	0.35%	―	10.36%	-100.68%
NETEL	46 Neutral	kr242.07M	-1.89	―	―	-13.07%	-372.35%