Vitec Software Group AB Class B (VIT.B) AI Stock Analysis

• Market Cap: kr9.32B
• Dividend Yield: 1.14%
• Average Volume (3M): 50.09K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.74
• Revenue Growth: 14.41%
• EPS Growth: -4.45%
• Country: SE
• Employees: 1,660
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.41
• Shares Outstanding: 37,400,290
• 10 Day Avg. Volume: 42,172
• 30 Day Avg. Volume: 50,091
• PEG Ratio: 13.79
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 3.38
• P/FCF Ratio: 11.35
• 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): 13.21
• Revenue Forecast (FY): kr3.95B

• Rating: 60 Neutral
• Price Target: kr242.00 ▼(-31.33% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is supported primarily by strong financial performance (growth, profitability, and cash generation), but is pulled down materially by weak technicals (price below key moving averages and negative MACD). Valuation is mid-range, with a moderate P/E and modest dividend yield providing limited offset.

Positive Factors

Recurring revenue model

A high proportion of recurring subscription and maintenance revenue creates predictable cash flows and strong customer retention, supporting multi-year visibility into revenue. This recurring base underpins margin stability and makes future upsell and cross-sell more effective as product portfolios expand.

Strong revenue and cash generation

Sustained multi-year revenue expansion alongside a step-up in operating and free cash flow demonstrates the business converts sales into cash efficiently. Robust FCF near net income improves capacity for reinvestment, acquisitions, dividends, or debt reduction, enhancing long-term financial flexibility.

Vertical niche focus and buy-and-build model

A targeted vertical strategy with a history of acquiring niche, business-critical products builds strong domain expertise and sticky customer relationships. This specialization reduces competition from generalist vendors, aids predictable renewal rates, and allows margin accretion through tailored services and cross-selling.

Negative Factors

Rising absolute debt

A material increase in absolute debt raises leverage and reduces financial flexibility, making the company more sensitive to slower growth or profit shocks. Higher interest and repayment obligations could crowd out investment in product development or acquisitions that fuel long-term growth.

Gross-margin compression in 2025

A notable drop in gross margins suggests adverse mix shifts, pricing pressure, or higher delivery costs that could persist. If structural, sustained margin erosion would impair operating leverage, reduce free cash flow conversion, and limit the ability to fund growth or return capital to shareholders.

OCF < EBITDA across years

When operating cash flow lags EBITDA consistently, it signals working-capital volatility or recurring cash outflows not captured in EBITDA. This weakens cash predictability, complicates reinvestment timing, and raises the importance of liquidity management under growth or margin pressure.

Vitec Software Group AB Class B Business Overview & Revenue Model

Company Description

Vitec Software Group AB Class B (VIT.B) is a Swedish software company specializing in the development of software solutions for various industries, including media, broadcasting, and public sector organizations. The company operates through multiple business segments, offering products such as media asset management systems, workflow solutions, and digital publishing tools. Vitec is recognized for its commitment to delivering innovative technology that enhances operational efficiency and supports digital transformation for its clients.

How the Company Makes Money

Vitec Software Group AB generates revenue primarily through the sale of software licenses, subscription services, and maintenance contracts. The company has a diverse portfolio of software solutions that cater to specific industry needs, allowing it to attract various clients across sectors. Key revenue streams include one-time license fees for software, recurring revenue from subscription-based models, and ongoing support and maintenance services. Additionally, Vitec often engages in strategic partnerships with other technology providers and industry players to expand its market reach and enhance its product offerings, which contributes positively to its overall earnings.

Vitec Software Group AB Class B Financial Statement Overview

Summary

Strong multi-year revenue growth and solid profitability, supported by improving operating and free cash flow (FCF near net income in 2025). Offsetting factors include sharp gross-margin compression in 2025 and rising absolute debt, which increase sensitivity if growth or margins soften.

Income Statement

The company shows strong multi-year revenue expansion (from ~1.31B in 2020 to ~3.63B in 2025) with consistently solid net margins around ~12% across the period. Profitability remains healthy with EBITDA margins generally in the low-to-high 30% range, supporting scalable earnings. The main weakness is volatility in gross margin—falling sharply in 2025 versus prior years—which suggests a less favorable mix, pricing pressure, or higher delivery costs that could weigh on future earnings quality if it persists.

Balance Sheet

The balance sheet is supported by a sizable equity base (~4.84B in 2025) and moderate leverage, with debt-to-equity around ~0.60 in 2025 (generally ranging ~0.44–0.73 over the period). Returns on equity are positive but not especially high for a software business (high-single to ~10% most years), indicating respectable but not standout efficiency. A key risk is the upward drift in absolute debt (from ~0.62B in 2020 to ~2.92B in 2025), which increases financial flexibility risk if growth or margins soften.

Cash Flow

Cash generation is strong and improving: operating cash flow rose to ~1.11B in 2025 and free cash flow to ~1.08B, with a large step-up in free cash flow growth in 2025. Free cash flow is consistently close to or above reported earnings quality in recent years (near 1x net income in 2025), indicating profits are translating well into cash. The main watch item is that operating cash flow is not consistently fully covering EBITDA (coverage below 1x across years), which can signal working-capital swings or recurring cash costs not captured in EBITDA.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.63B	3.33B	2.78B	1.98B	1.57B
Gross Profit	718.77M	1.23B	1.05B	1.19B	751.44M
EBITDA	1.29B	1.32B	940.05M	620.70M	496.64M
Net Income	435.36M	410.10M	339.18M	244.87M	206.94M
Balance Sheet
Total Assets	10.27B	10.08B	7.83B	6.32B	3.75B
Cash, Cash Equivalents and Short-Term Investments	416.51M	243.55M	171.85M	615.79M	119.85M
Total Debt	2.92B	2.54B	2.26B	1.63B	873.76M
Total Liabilities	5.43B	5.18B	4.42B	3.11B	1.76B
Stockholders Equity	4.84B	4.91B	3.41B	3.21B	1.99B
Cash Flow
Free Cash Flow	1.08B	546.46M	341.45M	278.02M	259.83M
Operating Cash Flow	1.11B	949.04M	718.40M	563.37M	488.02M
Investing Cash Flow	-1.18B	-1.96B	-1.68B	-1.44B	-1.51B
Financing Cash Flow	266.87M	1.10B	489.91M	1.34B	1.02B

Vitec Software Group AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 352.40
• 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:VIT.B, the sentiment is Negative. The current price of 352.4 is above the 20-day moving average (MA) of 240.80, above the 50-day MA of 267.05, and above the 200-day MA of 348.57, indicating a bearish trend. The MACD of -8.07 indicates Negative momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 57.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:VIT.B.

Vitec Software Group AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LIME	61 Neutral	kr2.65B	21.89	32.28%	1.41%	11.23%	16.24%
VIT.B	60 Neutral	kr9.32B	21.82	8.26%	1.14%	14.41%	-4.45%
FPIP	55 Neutral	kr1.28B	2.62	―	1.92%	-8.38%	-38.17%
ENEA	55 Neutral	kr1.15B	23.19	―	―	0.86%	73.68%
CINT	52 Neutral	kr1.29B	-0.66	1.00%	―	-21.66%	―
SEYE	44 Neutral	kr2.27B	-13.04	―	―	10.25%	-698.93%

Vitec Software Group AB Class B Corporate Events

Vitec raises SEK 700 million in bond issue to fund software acquisitions

Vitec Software Group has issued SEK 700 million in senior unsecured notes with a four-year tenor under its existing MTN programme, carrying a floating rate of three-month STIBOR plus 1.60%. The notes, which attracted strong investor demand, are intended to finance future acquisitions of well-established vertical software companies and general corporate purposes, and Vitec plans to list them on Nasdaq Stockholm’s Corporate Bond List.

The successful bond issue strengthens Vitec’s financial capacity to pursue its acquisition-driven growth strategy in the vertical software segment. By securing additional long-term funding on favourable terms, the company reinforces its position as an active industrial acquirer in the Nordic software market, supporting continued expansion and portfolio diversification.

The most recent analyst rating on ($SE:VIT.B) stock is a Buy with a SEK285.00 price target. To see the full list of analyst forecasts on Vitec Software Group AB Class B stock, see the SE:VIT.B Stock Forecast page.

Vitec Proposes New Board Members as It Expands Governance for Growth

Vitec Software Group’s Nomination Committee has proposed the election of Jonas Ahlberg of Lagercrantz Group and former Hexpol CFO Karin Gunnarsson to its Board of Directors at the April 28, 2026 Annual General Meeting, as part of a long-running effort to renew the Board and deepen its expertise in software, acquisitions, and international growth. Long-serving director Birgitta Johansson‑Hedberg will step down after serving since 2011, while all other current Board members are proposed for re‑election, which would expand the Board to seven members and potentially strengthen Vitec’s governance and capacity to execute its acquisition-driven growth strategy.

The most recent analyst rating on ($SE:VIT.B) stock is a Buy with a SEK285.00 price target. To see the full list of analyst forecasts on Vitec Software Group AB Class B stock, see the SE:VIT.B Stock Forecast page.

Vitec Grows Recurring Revenue and Cash Flow in 2025 Despite Margin Pressure

Vitec Software Group reported solid top-line growth for 2025, with net sales rising 9% to SEK 3,633 million and recurring revenues up 11% to SEK 3,204 million, underscoring the strength of its subscription-based business model. However, profitability metrics softened, as EBITA for the year declined 4% and the EBITA margin narrowed to 26% from 30%, even though operating profit inched up 2% and cash flow from operating activities improved to SEK 1,110 million. The company maintained its acquisitive strategy with the purchase of NMG and the board proposed a modestly higher dividend of SEK 3.68 per share, signaling confidence in its cash generation and long-term growth prospects despite margin pressure.

The most recent analyst rating on ($SE:VIT.B) stock is a Hold with a SEK245.00 price target. To see the full list of analyst forecasts on Vitec Software Group AB Class B stock, see the SE:VIT.B Stock Forecast page.

Vitec Bolsters Energy and Real Estate Software Portfolio With Infometric Acquisition

Vitec Software Group has strengthened its position in vertical market software by acquiring 80% of Swedish firm Infometric AB, a market leader in systems for metering, analyzing and billing energy, water and temperature consumption in the housing and real estate sector. The cash deal, which brought Infometric’s SEK 137.5 million in 2025 sales into the group and is expected to immediately boost Vitec’s earnings per share, will see Vitec gradually increase its stake to full ownership by 2030, deepening its presence at the intersection of energy efficiency, regulatory-driven individual metering and real estate management while supporting the broader energy transition and resource-optimization trends.

The most recent analyst rating on ($SE:VIT.B) stock is a Hold with a SEK270.00 price target. To see the full list of analyst forecasts on Vitec Software Group AB Class B stock, see the SE:VIT.B Stock Forecast page.

Vitec boosts vertical software portfolio with majority stake in Dutch firm Autonet

Vitec Software Group has reinforced its position in the vertical market software segment by acquiring a 75% stake in Dutch firm Autonet, a market leader in mission-critical software for the automotive dismantling sector in the Netherlands and Belgium, which generated €4.5 million in sales in 2025. The deal, paid in cash and set to be gradually increased to full ownership by 2029, is expected to immediately boost Vitec’s earnings per share and expand its footprint in the circular automotive parts value chain, while Autonet’s existing management retains a minority stake and its 22 employees join Vitec to support further international growth.

The most recent analyst rating on ($SE:VIT.B) stock is a Hold with a SEK279.00 price target. To see the full list of analyst forecasts on Vitec Software Group AB Class B stock, see the SE:VIT.B Stock Forecast page.

Vitec to Present 2025 Year-End Results in February Webcast

Vitec Software Group has announced that it will publish its year-end report for the 2025 financial year on 6 February 2026, followed by an English-language webcast presentation hosted by CEO Olle Backman and Head of Investor Relations Patrik Fransson. The event, which includes a Q&A session and will later be available as a recording on the company’s website, is positioned as a key opportunity for investors and other stakeholders to gain insights into Vitec’s performance and ongoing strategy in its specialist vertical software markets.

The most recent analyst rating on ($SE:VIT.B) stock is a Hold with a SEK331.00 price target. To see the full list of analyst forecasts on Vitec Software Group AB Class B stock, see the SE:VIT.B Stock Forecast page.