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Sinch AB
(SINCH)
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Rating:64Neutral
Price Target:
kr51.00
▲(107.23% Upside)
Action:Reiterated
Date:08/28/26
The score is driven primarily by improving financials and strong cash generation, supported by a technically strong uptrend. These positives are tempered by a rich valuation (high P/E), still-thin profitability, and earnings-call risks around regional weakness (APAC/EMEA) and near-term margin/cash uncertainties.
Positive Factors
Strong cash generation
Sinch is generating substantial operating and free cash flow while completing its turnaround, giving the business internal funding capacity. Strong cash conversion supports investment in growth, debt management, and shareholder returns, making reported profitability more financially credible over the next several quarters.
Negative Factors
Thin and uneven profitability
Although Sinch has returned to positive net income, its thin net and gross margins leave limited protection against operating setbacks. Recent revenue trends have also been uneven, so the recovery still depends on sustained growth and better conversion of scale into durable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sinch is generating substantial operating and free cash flow while completing its turnaround, giving the business internal funding capacity. Strong cash conversion supports investment in growth, debt management, and shareholder returns, making reported profitability more financially credible over the next several quarters.
Read all positive factors
Sinch AB (SINCH) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr34.12B
Dividend YieldN/A
Average Volume (3M)2.47M
Price to Earnings (P/E)78.1
Beta (1Y)1.14
Revenue Growth-6.20%
EPS GrowthN/A
CountrySE
Employees3,579
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.61
Shares Outstanding718,863,600
10 Day Avg. Volume2,156,781
30 Day Avg. Volume2,466,080
Financial Highlights & Ratios
PEG Ratio-1.17
Price to Book (P/B)1.16
Price to Sales (P/S)0.97
P/FCF Ratio18.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr41.88Price Target Upside70.15% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)3.23
Revenue Forecast (FY)kr27.68B
Sinch AB Business Overview & Revenue Model
Company Description
Sinch AB (publ) delivers sophisticated cloud-based communication services and solutions to enterprises and mobile network operators worldwide. Established in 2008 and headquartered in Stockholm, Sweden, the company maintains a significant global p...
How the Company Makes Money
Sinch makes money by charging businesses for usage of its communications services delivered over its cloud platform. The core revenue model is largely usage-based: customers pay per message, per voice minute, or per transaction depending on the pr...
Sinch AB Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presents several strong positives: clear acceleration in organic revenue (6%), robust Americas and API performance (Americas revenue +9%, Americas GP +10%, API mid‑teens growth), a high‑growth, high‑margin e‑mail business, strong cash generation (SEK 751m FCF, 61% cash conversion), active buybacks and reduced integration costs. Counterbalancing these are region‑specific headwinds in APAC (India provision, APAC GP -18%) and EMEA legacy product churn that compressed GP and margins, plus a notable tax provision and temporary FX effects on gross margin. Overall the strengths—particularly the large, profitable Americas engine, e‑mail growth, and strong cash flow—outweigh the localized challenges.Positive Updates
Accelerated Organic Revenue Growth
Organic revenue growth accelerated to 6% in Q2 2026, driven primarily by the Americas and the API product category.
Negative Updates
APAC Revenue and GP Weakness
APAC delivered negative organic results: organic GP fell ~18% in the quarter. India is the primary driver of APAC weakness, including a SEK 17 million revenue provision related to an ongoing customer dispute (disclosed also in Q1). Australia saw margin compression in applications.
Read all updates
Q2-2026 Updates
Positive
Negative
Accelerated Organic Revenue Growth
Organic revenue growth accelerated to 6% in Q2 2026, driven primarily by the Americas and the API product category.
Read all positive updates
Company Guidance
Management guided that H2 2026 should be stronger than H1 on organic revenue and organic gross profit (Q2: organic revenue +6%, organic GP +2%), driven by Americas (revenue +9%, GP +10%, APIs mid‑teens organic growth) while EMEA and APAC lag (EMEA GP ‑4%, APAC GP ‑18%; India included a SEK 17m revenue provision). They reiterated an adjusted EBITDA margin target of 12–14% and said they will prioritize growth investments while remaining in that range; Q2 adjusted EBITDA was essentially flat sequentially (‑0.2 ppt, ‑0.6 ppt YoY) with adjusted OpEx +1% and integration costs down ~SEK 30m (‑2/3 YoY). Cash metrics were strong: free cash flow SEK 751m in Q2, rolling‑12 cash conversion 61% (above guidance), net leverage 1.9 (down from 2.0), and share buybacks of 4m shares in Q2 (15% repurchased since program start) with a new authorization to repurchase up to 10% through AGM 2027. They flagged temporary gross‑margin headwinds (gross margin down 1.6 ppt YoY — ~‑1 ppt from COGS pass‑through and ~‑0.5 ppt FX) but expect margins to normalize; product metrics highlighted e‑mail scale and quality (99.99% uptime, 97% delivery, 1.6m e‑mails/min ≈ 850bn/year, volumes +21%).Sinch AB Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.77B | 27.08B | 28.71B | 28.75B | 27.72B | 16.18B |
| Gross Profit | 3.35B | 2.81B | 10.07B | 2.51B | 8.81B | 3.93B |
| EBITDA | 4.12B | 3.53B | -3.20B | 3.10B | -1.96B | 1.93B |
| Net Income | 460.00M | 217.00M | -6.41B | 42.00M | -4.94B | 907.00M |
Balance Sheet | ||||||
| Total Assets | 41.67B | 40.15B | 48.00B | 53.13B | 57.28B | 57.08B |
| Cash, Cash Equivalents and Short-Term Investments | 750.00M | 553.00M | 1.08B | 1.01B | 2.17B | 1.87B |
| Total Debt | 8.16B | 6.91B | 7.09B | 2.36B | 11.34B | 12.52B |
| Total Liabilities | 18.69B | 17.41B | 18.98B | 19.47B | 22.85B | 23.03B |
| Stockholders Equity | 22.98B | 22.74B | 29.02B | 33.66B | 34.43B | 34.05B |
Cash Flow | ||||||
| Free Cash Flow | 2.16B | 1.45B | 2.35B | 1.16B | 1.86B | 150.37M |
| Operating Cash Flow | 2.77B | 2.10B | 2.94B | 1.79B | 2.51B | 328.71M |
| Investing Cash Flow | -620.00M | -650.00M | -604.00M | -649.00M | -691.00M | -29.06B |
| Financing Cash Flow | -1.86B | -1.89B | -2.23B | -2.34B | -1.51B | 26.45B |
Sinch AB Technical Analysis
Positive
24.61
Price Trends
46.01
Positive
42.51
Positive
35.11
Positive
Market Momentum
0.22
Negative
55.52
Neutral
70.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SINCH, the sentiment is Positive. The current price of 24.61 is below the 20-day moving average (MA) of 46.20, below the 50-day MA of 46.01, and below the 200-day MA of 35.11, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 70.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SINCH.
Sinch AB Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | kr3.71B | 17.03 | 12.70% | ― | 77.35% | ― | |
64 Neutral | kr34.12B | 78.08 | 1.99% | ― | -6.20% | ― | |
63 Neutral | kr176.50B | 36.84 | 9.48% | 4.25% | -4.06% | 14.70% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | kr119.02M | 13.38 | 27.90% | ― | 7.92% | -43.49% | |
54 Neutral | kr274.62M | -1.10 | -42.59% | ― | -5.09% | -1189.66% | |
46 Neutral | kr2.63B | 63.37 | 2.32% | 0.25% | 0.40% | ― |
* Communication Services Sector Average
SE:SINCH
Sinch AB
46.25
12.52
37.12%
SE:TELIA
Telia Company AB
48.26
12.41
34.61%
SE:TRANS
Transtema Group AB
4.65
-5.27
-53.11%
SE:TALK
TalkPool AG
13.00
2.15
19.82%
SE:ELTEL
Eltel AB
16.45
7.63
86.51%
SE:OVZON
Ovzon AB
34.44
-0.61
-1.74%
Sinch AB Corporate Events
Sinch Issues New Shares After Employee Stock Option Exercise
Aug 31, 2026
Sinch AB has modestly increased its share capital, reporting a new total of 718,863,595 shares and votes following the issuance of 8,732 shares in August. The additional shares stem from the exercise of stock options under existing incentive progr...
Sinch Updates Share Count After Incentive Program Option Exercise
Jul 31, 2026
Sinch AB has updated its share capital structure, confirming that the total number of shares and votes now stands at 718,854,863 following the issuance of 143,379 new shares in July. The new shares were created through the exercise of stock option...
Sinch Q2 Growth Led by Americas as AI Partnerships and Leadership Changes Reshape Strategy
Jul 22, 2026
Sinch AB reported second-quarter organic net sales growth of 6 percent to SEK 6,866 million, driven primarily by strong performance in the Americas, where gross profit grew 10 percent on its API platform and efficiency gains in U.S. network voice....
Sinch Launches Share Buyback of Up to 10% of Outstanding Stock
Jul 22, 2026
Sinch AB’s board has approved a share buyback program authorizing repurchases of up to 10% of the company’s outstanding shares, currently equal to 71,885,486 shares, under a mandate granted by shareholders at the May 2026 annual meetin...
Sinch Adjusts Share Capital After Option Exercises and Share Cancellations
Jun 30, 2026
Sinch AB, a Stockholm-based, Nasdaq-listed provider of intelligent customer communications across messaging, email and voice, serves more than 200,000 customers and handles over 900 billion interactions a year. The company reported 2025 net sales ...
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.