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HMS Networks AB
(HMS)
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Rating:63Neutral
Price Target:
kr533.00
▲(7.20% Upside)
Action:Reiterated
Date:10/22/26
The score is supported primarily by strong financial performance (notably cash generation and healthy margins) and a constructive earnings update with record profitability and strong orders. It is held back by weak technicals (price below key moving averages) and a demanding valuation (high P/E with a low yield), alongside near-term margin headwinds highlighted on the call.
Positive Factors
Strong Cash Generation
Robust operating and free cash flow gives HMS internal funding for research, product development, acquisitions, and shareholder returns. Strong conversion also improves resilience during cyclical demand shifts, although historical conversion has shown some working-capital volatility.
Negative Factors
Near-Term Margin Pressure
Higher component prices and tariffs are pressuring most of HMS’s product portfolio, while planned price increases may not fully offset the impact until around Q2. This creates a credible risk that margins and earnings remain below recent peaks.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Robust operating and free cash flow gives HMS internal funding for research, product development, acquisitions, and shareholder returns. Strong conversion also improves resilience during cyclical demand shifts, although historical conversion has shown some working-capital volatility.
Read all positive factors
HMS Networks AB (HMS) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr27.14B
Dividend Yield0.96%
Average Volume (3M)43.33K
Price to Earnings (P/E)45.3
Beta (1Y)0.96
Revenue Growth14.26%
EPS Growth49.83%
CountrySE
Employees1,137
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)11.03
Shares Outstanding50,318,867
10 Day Avg. Volume38,367
30 Day Avg. Volume43,329
Financial Highlights & Ratios
PEG Ratio1.32
Price to Book (P/B)6.05
Price to Sales (P/S)5.88
P/FCF Ratio25.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)15.15
Revenue Forecast (FY)kr4.07B
HMS Networks AB Business Overview & Revenue Model
Company Description
HMS Networks AB (publ), a Swedish company founded in Halmstad in 1988, is a global leader in providing sophisticated industrial communication and Industrial Internet of Things (IIoT) solutions. The company's extensive product lineup is offered wor...
How the Company Makes Money
HMS primarily makes money by selling industrial connectivity and networking products and related software that enable communication between industrial devices and systems. Key revenue streams generally include: (1) Product sales of industrial comm...
HMS Networks AB Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. HMS reported record revenue above SEK 1 billion, strong order intake, record EBITA, robust cash flow, improving conditions across APAC and Europe, exceptional INT growth, lower leverage, and continued progress on product development and M&A. The main challenges were gross-margin pressure from tariffs and component costs, supply allocation issues, temporary cash flow support from payables, weak IDS project orders, and continued weakness in parts of European automotive markets. Management nevertheless described the market situation as good and stable and expressed confidence in the coming quarters.Positive Updates
Revenue Surpassed SEK 1 Billion
Q3 revenue reached SEK 1,024 million, surpassing the SEK 1 billion milestone, with double-digit reported growth and 6% organic growth.
Negative Updates
Gross Margin Under Pressure
Q3 gross margin was 62.7%, or 62.4% excluding a SEK 3 million tariff refund related to 2025 tariffs. Component price increases and tariffs affected most of the product portfolio. Management expects a slightly more challenging Q4 and potentially Q1, with price increases from January 1 not fully impacting results until around Q2 and improvements potentially not visible until 2027.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Surpassed SEK 1 Billion
Q3 revenue reached SEK 1,024 million, surpassing the SEK 1 billion milestone, with double-digit reported growth and 6% organic growth.
Read all positive updates
Company Guidance
Management expects prebuying behavior to continue for “at least 1 or 2 quarters more,” with the SEK 70 million level considered “quite likely,” depending on how the component market develops. Gross margin is expected to face a “slightly challenging Q4 and maybe also Q1,” with Q1 potentially “more challenging than Q4,” while price increases from January 1 are expected to have full impact from “like Q2 or so”; management said it would “wait until 2027 to see improvements” and hopes to protect the “62% plus mark.” INT is expected to have “a very good momentum and probably expect that to continue for some time,” the company wants “50% of the growth to come from acquisitions,” and its 2030 ambition is to become a “SEK 7.5 billion revenue company,” making “SEK 1 billion per quarter.”HMS Networks AB Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.81B | 3.58B | 3.06B | 3.02B | 2.51B | 1.97B |
| Gross Profit | 2.41B | 2.25B | 1.92B | 1.97B | 1.58B | 1.23B |
| EBITDA | 1.21B | 1.03B | 703.15M | 854.88M | 740.44M | 554.26M |
| Net Income | 553.00M | 435.00M | 309.68M | 570.64M | 507.79M | 354.85M |
Balance Sheet | ||||||
| Total Assets | 6.80B | 6.60B | 7.50B | 3.01B | 2.73B | 2.20B |
| Cash, Cash Equivalents and Short-Term Investments | 47.00M | 89.00M | 73.93M | 124.03M | 144.17M | 172.17M |
| Total Debt | 2.19B | 2.43B | 3.16B | 267.38M | 298.59M | 84.14M |
| Total Liabilities | 3.11B | 3.12B | 3.99B | 1.08B | 1.12B | 1.03B |
| Stockholders Equity | 3.70B | 3.48B | 3.50B | 1.93B | 1.61B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | 934.00M | 815.00M | 471.00M | 445.00M | 348.06M | 469.30M |
| Operating Cash Flow | 1.07B | 878.00M | 592.02M | 518.86M | 431.11M | 508.49M |
| Investing Cash Flow | -216.00M | -135.00M | -4.45B | -135.12M | -365.93M | -100.04M |
| Financing Cash Flow | -871.00M | -715.00M | 3.83B | -400.23M | -98.96M | -320.86M |
HMS Networks AB Technical Analysis
Negative
497.20
Price Trends
529.57
Negative
513.10
Negative
482.01
Negative
Market Momentum
-3.98
Positive
26.95
Positive
10.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HMS, the sentiment is Negative. The current price of 497.2 is below the 20-day moving average (MA) of 549.10, below the 50-day MA of 529.57, and above the 200-day MA of 482.01, indicating a bearish trend. The MACD of -3.98 indicates Positive momentum. The RSI at 26.95 is Positive, neither overbought nor oversold. The STOCH value of 10.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:HMS.
HMS Networks AB Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | kr629.09M | 18.32 | ― | ― | 2.76% | 92.66% | |
63 Neutral | kr27.14B | 45.33 | 15.42% | 0.96% | 14.26% | 49.83% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | kr4.84B | 29.40 | 10.25% | 0.96% | 10.48% | 22.01% | |
58 Neutral | kr342.00M | 198.50 | ― | 1.05% | 16.73% | 202.62% | |
54 Neutral | kr8.56B | 195.00 | 1.20% | 0.13% | 4.60% | -89.25% | |
53 Neutral | kr718.17M | -225.38 | ― | 0.63% | -9.23% | -111.03% |
* Technology Sector Average
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HMS Networks AB Corporate Events
HMS Networks Breaks SEK 1 Billion Quarterly Revenue Amid Margin Pressure and Strategic Deals
Oct 21, 2026
HMS Networks AB reported a strong third quarter, surpassing SEK 1 billion in revenue and delivering double‑digit growth in order intake and net sales, driven mainly by its Industrial Network Technology and New Industries divisions. Asia led ...
HMS Networks Schedules Q3 2026 Report Release and Investor Call
Oct 7, 2026
HMS Networks AB has announced that it will publish its third-quarter 2026 report on October 21 at 07:30 CEST, followed by a conference call for press and analysts at 09:00 CEST hosted by President and CEO Staffan Dahlström and CFO Joakim Nide...
HMS Networks Appoints Nomination Committee Ahead of 2027 AGM
Sep 24, 2026
HMS Networks AB has appointed a Nomination Committee for its 2027 Annual General Meeting, formed in consultation with the company’s four largest shareholders. The committee includes representatives from Investment AB Latour, AMF Fonder, SEB ...
HMS Networks moves deeper into hotel building automation with EUR 21m Robot takeover
Sep 11, 2026
HMS Networks is expanding its footprint in building automation beyond its existing HVAC gateway solutions by acquiring ROBOT S.A., a Spanish-based specialist in sensors, room controllers and building management systems for hotels, with operations ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.