Transtema Group AB (TRANS) AI Stock Analysis

• Market Cap: kr578.98M
• Dividend Yield: N/A
• Average Volume (3M): 64.76K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.36
• Revenue Growth: 8.67%
• EPS Growth: -49.01%
• Country: SE
• Employees: 1,345
• Sector: Industrials
• Sector Strength: 79
• Industry: Telecommunications Services
• EPS (TTM): 0.31
• Shares Outstanding: 42,951,157
• 10 Day Avg. Volume: 124,893
• 30 Day Avg. Volume: 64,761
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr13.51
• Price Target Upside: 0.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: kr13.50 ▲(0.75% Upside)

The overall stock score of 54 reflects the company's solid operational efficiency and stable balance sheet, offset by challenges in profitability and cash flow. The technical analysis indicates bearish momentum, and the valuation suggests the stock is overvalued. These factors collectively contribute to a cautious outlook.

Transtema Group AB Business Overview & Revenue Model

Company Description

Transtema Group AB (TRANS) is a Swedish technology and service company that specializes in providing solutions for communication networks and infrastructure. Operating primarily within the telecommunications, energy, and IT sectors, Transtema offers a range of services including network planning, installation, maintenance, and management. Their core products encompass fiber optic networks, data and telecom services, and advanced communication systems, catering to both public and private sector clients.

How the Company Makes Money

Transtema generates revenue through multiple streams, primarily by offering project-based services and long-term contracts in network deployment and maintenance. The company earns significant income from its telecommunications solutions, including the installation and management of fiber optic networks. Additionally, Transtema engages in consulting services that support clients in optimizing their communication infrastructures. Partnerships with major telecom operators and energy companies enhance their market reach and capability, contributing to a diverse client base and stable revenue flow. The company also benefits from government and EU-funded projects aimed at expanding digital infrastructure, further solidifying its earnings potential.

Transtema Group AB Financial Statement Overview

Summary

Transtema Group AB shows stable revenue growth and manageable leverage. Profitability metrics are improving, but operational efficiency remains a challenge. Strong cash generation capabilities are present, though recent declines in free cash flow need attention.

Income Statement

Transtema Group AB has demonstrated consistent revenue growth with a 3.93% increase TTM. Gross profit margins remain stable at 53.05%, and the company has improved its net profit margin to 1.46% from a negative position last year, indicating better cost management. However, EBIT and EBITDA margins are relatively low at 2.29% and 8.12%, respectively, suggesting limited operational efficiency. Continued focus on improving operational margins is essential for future growth.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.76, indicating manageable leverage. The equity ratio stands at 36.21%, suggesting a balanced approach to asset financing. However, return on equity (ROE) has decreased to 0.69%, pointing to reduced profitability relative to shareholder equity. Maintaining a strong equity base while improving ROE is crucial for financial stability.

Cash Flow

Transtema has shown strong cash flow management, with a free cash flow to net income ratio of 23.00, highlighting robust cash generation capabilities. Operating cash flow to net income ratio is 28.66, underscoring efficient cash conversion. However, free cash flow has decreased by 46.52% compared to the previous period, which suggests a need to enhance cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.65B	2.49B	2.69B	2.46B	1.69B	1.40B
Gross Profit	1.39B	1.34B	1.40B	1.28B	1.11B	824.95M
EBITDA	227.01M	154.24M	374.45M	284.65M	141.68M	126.45M
Net Income	17.17M	-9.30M	132.09M	128.77M	88.45M	3.87M
Balance Sheet
Total Assets	1.58B	1.64B	1.71B	1.60B	859.80M	758.36M
Cash, Cash Equivalents and Short-Term Investments	43.10M	126.06M	67.11M	93.30M	177.82M	64.88M
Total Debt	453.82M	414.51M	355.84M	316.33M	172.68M	195.25M
Total Liabilities	1.03B	1.09B	1.16B	1.21B	608.44M	598.29M
Stockholders Equity	552.16M	556.47M	558.19M	387.65M	250.43M	159.52M
Cash Flow
Free Cash Flow	24.47M	161.95M	12.56M	98.04M	196.29M	149.68M
Operating Cash Flow	56.00M	185.56M	27.22M	109.17M	210.64M	161.13M
Investing Cash Flow	-59.41M	-113.17M	-62.69M	-208.46M	-13.98M	14.13M
Financing Cash Flow	-43.06M	-14.37M	9.05M	14.68M	-83.90M	-128.50M

Transtema Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TRANS, the sentiment is Negative. The current price of 13.4 is below the 20-day moving average (MA) of 15.39, below the 50-day MA of 15.35, and below the 200-day MA of 14.96, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 27.60 is Positive, neither overbought nor oversold. The STOCH value of 12.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	77 Outperform	€598.68M	40.66	32.79%	0.93%	27.22%	30.28%
TALK	66 Neutral	kr90.83M	7.69	153.14%	―	-1.65%	18.96%
NETEL	61 Neutral	kr488.03M	―		―	-6.27%	-201.92%
Sector *	60 Neutral	kr43.36B	13.66	1.95%	2.33%	-0.60%	-20.68%
TRANS	54 Neutral	kr578.98M	33.09	3.44%	―	8.67%	-49.01%
ELTEL	45 Neutral	kr1.54B	―	-1.65%	―	-6.41%	90.48%
OVZON	45 Neutral	€4.20B	―	-4.90%	―	54.73%	11.77%