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

• Market Cap: kr15.14B
• Dividend Yield: 0.86%
• Average Volume (3M): 98.65K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.72
• Revenue Growth: 16.99%
• EPS Growth: 1.34%
• Country: SE
• Employees: 1,660
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 2.63
• Shares Outstanding: 37,359,340
• 10 Day Avg. Volume: 50,670
• 30 Day Avg. Volume: 98,648
• PEG Ratio: 3.30
• Price to Book (P/B): 4.23
• Price to Sales (P/S): 6.23
• P/FCF Ratio: 38.03
• 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: kr459.45
• Price Target Upside: 20.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: kr404.00 ▲(6.32% Upside)

Vitec Software Group AB Class B's overall stock score is primarily influenced by its strong financial performance, despite a decline in free cash flow growth. The technical analysis indicates bearish momentum, which negatively impacts the score. The high P/E ratio suggests potential overvaluation, further moderating the overall score.

Vitec Software Group AB Class B Business Overview & Revenue Model

Company Description

Vitec Software Group AB (publ) develops and delivers vertical market software in Sweden, Denmark, Finland, Norway, and internationally. The company offers software for municipal culture and recreation administration offices, as well as other visitor facilities; healthcare companies; church activities; banking and finance industry; information management within the process industry and energy companies; social services sector; automotive, transportation, and machinery industry; local associations and national organizations; construction and property management industry; pharmacy market; car dealers and auto repair shops; electricity traders, and owners of electricity and district heating grids; hair and beauty salons; and welfare sectors. It also provides software for preschools; real estate agents; education sector; golf courses; liability insurance companies; building and facility management; private and municipal waste and resource processing; media companies; and insurance companies. Vitec Software Group AB (publ) was incorporated in 1985 and is headquartered in Umeå, Sweden.

How the Company Makes Money

Vitec Software Group AB generates revenue primarily through the sale and licensing of its software products tailored to specific industries. The company adopts a subscription-based revenue model, offering its software solutions on a recurring basis, which ensures a stable and predictable income stream. A significant portion of its revenue comes from long-term contracts with clients in various niche markets, creating a dependable customer base. Additionally, Vitec benefits from strategic acquisitions of niche software companies, which not only expand its product portfolio but also its market reach and customer base across the Nordic region. This approach allows Vitec to leverage synergies and cross-sell its solutions, further enhancing its revenue potential.

Vitec Software Group AB Class B Financial Statement Overview

Summary

Vitec Software Group AB Class B presents a strong financial profile with robust revenue growth and profitability. The balance sheet is stable with moderate leverage, and cash flow generation is solid, supporting future growth and potential dividend distributions. While the company shows strong operational efficiency and cash conversion, continued monitoring of leverage is advisable as it grows.

Income Statement

The company has demonstrated strong revenue growth, with a significant increase in total revenue over recent years. The TTM gross profit margin is robust at approximately 39.2%, indicating efficient cost management. The net profit margin is around 11.7%, reflecting solid profitability. EBIT and EBITDA margins are also healthy, at about 20% and 39% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is strong, with a debt-to-equity ratio of 0.50, suggesting a moderate level of leverage. Return on equity (ROE) is approximately 8.7%, which is decent, showing the company is effectively generating returns on shareholders' investments. The equity ratio is about 47.3%, indicating a stable capital structure with a good proportion of equity financing.

Cash Flow

The company shows a strong cash flow position, with a healthy operating cash flow to net income ratio of 2.71, reflecting efficient cash generation relative to net income. The free cash flow growth rate is impressive, indicating the company is enhancing its ability to generate cash after capital expenditures. The free cash flow to net income ratio stands at a robust 1.93, showcasing strong cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.53B	3.33B	2.78B	1.98B	1.57B	1.31B
Gross Profit	1.39B	1.23B	1.05B	1.19B	926.99M	755.25M
EBITDA	1.33B	1.32B	940.05M	620.70M	496.64M	389.25M
Net Income	393.11M	410.10M	339.18M	244.87M	206.94M	160.71M
Balance Sheet
Total Assets	9.83B	10.08B	7.83B	6.32B	3.75B	2.21B
Cash, Cash Equivalents and Short-Term Investments	301.76M	243.55M	171.85M	615.79M	119.85M	134.69M
Total Debt	2.41B	2.54B	2.26B	1.63B	873.76M	616.71M
Total Liabilities	5.07B	5.18B	4.42B	3.11B	1.76B	1.36B
Stockholders Equity	4.75B	4.91B	3.41B	3.21B	1.99B	843.35M
Cash Flow
Free Cash Flow	670.41M	546.46M	341.45M	278.02M	259.83M	263.44M
Operating Cash Flow	1.10B	949.04M	718.40M	563.37M	488.02M	436.33M
Investing Cash Flow	-2.16B	-1.96B	-1.68B	-1.44B	-1.51B	-340.13M
Financing Cash Flow	1.08B	1.10B	489.91M	1.34B	1.02B	38.49M

Vitec Software Group AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 380.00
• 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 380 is above the 20-day moving average (MA) of 379.76, below the 50-day MA of 423.27, and below the 200-day MA of 496.52, indicating a neutral trend. The MACD of -14.02 indicates Negative momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 32.15 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
VIT.B	61 Neutral	kr15.14B	37.95	9.42%	0.86%	16.99%	1.34%
LIME	61 Neutral	€4.38B	43.86	33.21%	1.04%	12.88%	16.11%
PACT	60 Neutral	kr2.40B	13.96	15.85%	2.69%	-2.05%	-24.44%
ANOD.B	58 Neutral	kr14.86B	34.40	18.26%	1.06%	-24.57%	33.88%
TRUE.B	58 Neutral	kr16.47B	33.39	39.36%	0.79%	15.64%	6.32%
KNOW	56 Neutral	kr3.14B	38.59	1.97%	3.32%	-11.20%	-55.97%
Sector *	50 Neutral	C$3.52B	0.36	-5.03%	7.64%	16.99%	-2.41%

Vitec Software Group AB Class B Corporate Events

Vitec Software Group Reports Mixed Financial Results for First Half of 2025

Vitec Software Group AB reported a 4% increase in net sales to SEK 916 million for the April-June 2025 period, with recurring revenues rising by 5%. However, the EBITA decreased by 11% to SEK 236 million, reflecting a challenging quarter. For the first half of 2025, net sales grew by 12% to SEK 1,796 million, driven by a 15% increase in recurring revenues. Despite the growth in sales, EBITA fell by 6% to SEK 456 million. The company remains focused on long-term growth through strategic acquisitions and maintaining a high proportion of recurring revenues, which provide stability and predictability in cash flows.

The most recent analyst rating on ($SE:VIT.B) stock is a Hold with a SEK580.00 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 Software Group to Present Interim Report for January-June 2025

Vitec Software Group has announced a webcast presentation of its Interim Report for January-June 2025, scheduled for July 11, 2025. The presentation will be led by CEO Olle Backman and Head of Investor Relations Patrik Fransson, and will include a Q&A session. This event underscores Vitec’s commitment to transparency and stakeholder engagement, potentially impacting investor confidence and market perception.

The most recent analyst rating on ($SE:VIT.B) stock is a Hold with a SEK580.00 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.