Wise Group AB (WISE) AI Stock Analysis

• Market Cap: kr94.97M
• Dividend Yield: N/A
• Average Volume (3M): 1.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -20.88%
• EPS Growth: 14.14%
• Country: SE
• Employees: 397
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -0.67
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: kr13.00 ▲(5.26% Upside)

The score is primarily held down by weak financial performance (declining revenue and ongoing losses), with only partial offset from positive free cash flow. Technicals are mixed (improving short-term vs weaker long-term trend), while valuation remains challenged due to negative earnings and no dividend data.

Positive Factors

Recurring revenue and partnerships

Wise Group's mix of project work plus subscription/cloud support and strategic tech partnerships creates a more durable revenue base than pure project consulting. Recurring fees and partner access help smooth volatility, enable cross-selling, and support scale in target verticals over the medium term.

Positive trailing‑12m free cash flow

Positive TTM free cash flow materially exceeding net income provides a cash cushion while profitability is weak. That FCF enables reinvestment, supports working capital and strategic initiatives without immediate external financing, improving survivability during a multi‑quarter turnaround.

Stable gross margin

Maintaining gross margins around the low‑40% range suggests the company retains underlying project pricing power and delivery efficiency. If SG&A discipline returns, stable gross margins provide a plausible pathway back to operating leverage and improved profitability over several quarters.

Negative Factors

Revenue contraction

TTM revenue decline signals weakening demand or market share loss in core services. Sustained revenue contraction undermines scale economics, compresses operating leverage, and makes it harder to cover fixed costs; absent reacceleration, this limits medium‑term recovery prospects.

Ongoing negative EBIT and net losses

Persistent operating losses have eroded returns and equity, reducing financial flexibility. Continued negative EBIT limits the company’s ability to self‑fund growth or absorb shocks, increases reliance on cash buffers or financing, and raises execution risk for strategic initiatives.

Weak operating cash generation

Very low and weakening operating cash flow indicates inconsistent cash conversion from revenue. Reliance on non‑operating items to show positive FCF increases volatility and risks funding shortfalls for capex, hiring, or R&D, impairing sustainable reinvestment and growth capability.

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 generates revenue through multiple streams, primarily from project-based consulting services, where they charge clients for custom software development and IT advisory services. Additionally, the company earns income through recurring revenue models, such as subscription fees for cloud-based solutions and ongoing support services. Strategic partnerships with technology providers and industry leaders also contribute to their earnings by providing access to new markets and enhancing service offerings. These collaborations enable Wise Group AB to leverage complementary strengths and expand their client base, ultimately driving revenue growth.

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	530.78M	630.63M	803.10M	910.46M	744.59M	686.26M
Gross Profit	218.35M	264.18M	315.38M	412.93M	340.71M	273.83M
EBITDA	3.58M	7.53M	9.58M	68.89M	100.09M	3.85M
Net Income	-19.89M	-19.15M	-16.19M	19.14M	41.37M	-2.17M
Balance Sheet
Total Assets	190.87M	237.76M	306.30M	409.88M	404.27M	412.09M
Cash, Cash Equivalents and Short-Term Investments	20.75M	36.91M	53.70M	104.03M	114.28M	41.37M
Total Debt	49.71M	61.30M	71.38M	104.75M	95.25M	122.34M
Total Liabilities	136.40M	169.25M	219.42M	277.22M	262.55M	311.84M
Stockholders Equity	54.47M	68.50M	86.87M	132.66M	141.72M	100.25M
Cash Flow
Free Cash Flow	12.21M	3.19M	-7.00K	49.49M	19.59M	40.89M
Operating Cash Flow	1.81M	3.19M	924.00K	57.59M	21.83M	60.43M
Investing Cash Flow	-1.30M	252.00K	-586.00K	-8.33M	83.38M	-17.19M
Financing Cash Flow	-14.61M	-20.37M	-51.24M	-61.17M	-32.49M	-7.42M

Wise Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.35
• 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:WISE, the sentiment is Neutral. The current price of 12.35 is below the 20-day moving average (MA) of 12.66, below the 50-day MA of 12.87, and below the 200-day MA of 15.41, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 59.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	74 Outperform	kr411.67M	10.27	―	5.95%	-17.43%	-39.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HEGR	50 Neutral	kr22.89M	-1.54	-8.40%	―	-11.42%	-116.51%
PION.B	47 Neutral	kr254.37M	-9.25	-18.85%	―	-17.32%	36.05%
WISE	43 Neutral	kr94.97M	-5.03	-29.57%	―	-20.88%	14.14%