Wise Group AB (WISE) AI Stock Analysis

• Market Cap: €104.58M
• Dividend Yield: N/A
• Average Volume (3M): 1.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -21.52%
• EPS Growth: -26.42%
• Country: SE
• Employees: 397
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -0.62
• Shares Outstanding: 7,390,860
• 10 Day Avg. Volume: 1,013
• 30 Day Avg. Volume: 1,319
• PEG Ratio: -0.36
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 39.39
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: kr15.00 ▲(10.70% Upside)

Wise Group AB's overall stock score is primarily impacted by its financial performance, which shows declining revenues and profitability. Technical analysis indicates a bearish trend with no strong momentum. Valuation metrics are weak, with a negative P/E ratio and no dividend yield, reflecting financial struggles. These factors collectively result in a low overall stock score.

Wise Group AB Business Overview & Revenue Model

Company Description

Wise Group AB (publ) provides recruitment and consultancy services in Sweden, Finland, and Denmark. The company offers services within the areas of HR, payroll, finance, marketing, communication, and business administration for commercial, public, and non-profit organizations; HR consultancy, leadership, organizational development, and coaching services; and recruitment and professional staffing of IT specialists, developers, and IT management leaders. It also engages in search and interim management of leadership and specialist roles; recruitment and consultant staffing services within marketing and communication; recruitment, interim management, and advisory counseling services for the sales organization. In addition, the company provides recruitment and consultant staffing services that fill positions, such as CFOs, controllers, and accountants, as well as assistant of CEO and management assistant, executive assistant, administrative manager, office manager, front desk manager, customer service manager, project coordinator, administrator, facility manager, facility coordinator, sales, purchase, law, and office assistants, as well as front desk and customer service assistants. Wise Group AB (publ) was incorporated in 2005 and is based in Stockholm, Sweden.

How the Company Makes Money

Wise Group AB makes money primarily through its diverse range of HR services tailored to meet the needs of different organizations. Key revenue streams include fees from recruitment services, where the company matches qualified candidates with employers, and consultancy services, which involve advising businesses on HR strategies and practices. Additionally, Wise Group derives income from leadership development programs aimed at improving management and executive skills within client companies. Significant partnerships with both corporate clients and industry professionals enhance its service offerings and contribute to its earnings by expanding its market reach and expertise.

Wise Group AB Financial Statement Overview

Summary

Wise Group AB faces challenges with declining revenues and profitability, as evidenced by negative net income and EBIT in recent years. The balance sheet reveals growing debt reliance, while cash flow remains volatile but shows signs of stabilization. Future improvements in revenue and cost control are crucial for financial health recovery.

Income Statement

Wise Group AB has experienced a decline in revenue over the past few years, with a notable drop from 2020 to 2023. Gross profit margins have been inconsistent, and the company has reported negative EBIT and net income in recent periods, indicating operational challenges. Despite these issues, EBITDA margins suggest some capacity for positive cash flow generation.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the decline in stockholders' equity over the past years raises concerns about the company's financial health. The equity ratio has also decreased, suggesting an increased reliance on debt financing.

Cash Flow

Cash flow analysis reveals volatility, with free cash flow fluctuating significantly. While operating cash flow remains positive, the conversion of operating cash flow to net income is inconsistent, reflecting challenges in sustaining profitability. Recent improvements in free cash flow suggest potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	557.72M	630.63M	803.10M	910.46M	744.59M	686.26M
Gross Profit	228.47M	264.18M	315.38M	412.93M	340.71M	273.83M
EBITDA	-295.00K	7.53M	9.58M	68.89M	100.09M	14.19M
Net Income	-23.07M	-19.15M	-16.19M	19.14M	41.37M	-2.17M
Balance Sheet
Total Assets	218.06M	237.76M	306.30M	409.88M	404.27M	412.09M
Cash, Cash Equivalents and Short-Term Investments	35.87M	36.91M	53.70M	104.03M	114.28M	41.37M
Total Debt	52.65M	61.30M	71.38M	90.16M	95.25M	122.34M
Total Liabilities	157.46M	169.25M	219.42M	277.22M	262.55M	311.84M
Stockholders Equity	60.60M	68.50M	86.87M	132.66M	141.72M	100.25M
Cash Flow
Free Cash Flow	14.62M	3.19M	-7.00K	49.49M	19.59M	40.89M
Operating Cash Flow	14.69M	3.19M	924.00K	57.59M	21.83M	60.43M
Investing Cash Flow	-3.18M	252.00K	-586.00K	-8.33M	83.38M	-17.19M
Financing Cash Flow	-13.10M	-20.37M	-51.24M	-61.17M	-32.49M	-7.42M

Wise Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:WISE, the sentiment is Negative. The current price of 13.55 is below the 20-day moving average (MA) of 14.40, below the 50-day MA of 14.96, and below the 200-day MA of 16.88, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 36.16 is Neutral, neither overbought nor oversold. The STOCH value of 18.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:WISE.

Wise Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEDI	75 Outperform	kr438.45M	11.72	―	5.45%	-16.43%	-57.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PION.B	47 Neutral	€281.35M	―	-32.63%	4.53%	-19.81%	-203.10%
WISE	46 Neutral	€104.58M	―	-31.59%	―	-21.52%	-26.42%
HEGR	46 Neutral	kr27.85M	―	-1.79%	11.43%	-18.08%	-206.17%