Softronic AB Class B (SOF.B) AI Stock Analysis

• Market Cap: kr1.13B
• Dividend Yield: 6.01%
• Average Volume (3M): 27.94K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.13
• Revenue Growth: 1.57%
• EPS Growth: -1.85%
• Country: SE
• Employees: 445
• Sector: Technology
• Sector Strength: 65
• Industry: Information Technology Services
• EPS (TTM): 0.46
• Shares Outstanding: 49,632,805
• 10 Day Avg. Volume: 26,873
• 30 Day Avg. Volume: 27,936
• PEG Ratio: -5.50
• Price to Book (P/B): 3.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.92
• 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

Softronic AB's stock is rated favorably due to its strong financial performance, characterized by consistent revenue growth and robust cash flow management. While the technical indicators suggest a stable trend without significant momentum, the stock's fair valuation and attractive dividend yield make it a compelling choice for investors seeking stability and income. Despite minor cost pressures, the company's financial health supports its strategic initiatives, positioning it well for future growth.

Softronic AB Class B Business Overview & Revenue Model

Company Description

Softronic AB (publ) provides IT and management services primarily in Sweden. It offers AI, AML, automation, business development, case management system, cloud, customer relationship management, ERP systems, management, Microsoft, operation, information security, vulnerability analyses, UX/design, web, and system solutions, as well as consultancy services. The company was incorporated in 1984 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Softronic AB generates revenue primarily through its consultancy services, which involve advising clients on IT strategy and digital transformation. The company also earns income from developing custom software solutions tailored to meet specific client needs, as well as from ongoing management and maintenance of IT systems. Key revenue streams include project-based contracts and long-term service agreements with clients in diverse industries. Strategic partnerships with technology providers and a focus on emerging technologies also contribute to the company's earnings by enhancing its service offerings and expanding its market reach.

Softronic AB Class B Financial Statement Overview

Summary

Softronic AB displays a strong financial profile, marked by consistent revenue growth, solid profitability margins, and a robust balance sheet. The company's effective cash flow management further enhances its financial stability, making it well-positioned for future growth. Despite minor cost pressures affecting EBITDA margins, the overall outlook remains favorable, with a sound capital structure and strong operational cash flows supporting its strategic initiatives.

Income Statement

Softronic AB has demonstrated consistent revenue growth, with a notable increase from 2022 to TTM, indicating strong market demand. The gross profit margin is stable, reflecting efficient cost management. However, the slight decline in EBITDA margin from 2023 suggests potential cost pressures. Overall, the company maintains solid profitability metrics, contributing to a strong income statement performance.

Balance Sheet

The company exhibits a healthy balance sheet with a strong equity position and a low debt-to-equity ratio, indicating financial stability and low leverage risk. The equity ratio is robust, showcasing a well-capitalized structure. However, the decrease in cash and cash equivalents over the years could impact liquidity, warranting closer monitoring.

Cash Flow

Softronic AB has demonstrated impressive cash flow management, with operating cash flow consistently exceeding net income, indicating high-quality earnings. The significant growth in free cash flow, especially in TTM, underscores effective capital expenditure control. The company's ability to generate substantial free cash flow relative to net income is a positive indicator of financial health.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
847.50M	842.40M	837.52M	797.12M	786.52M	728.00M
	Gross Profit
140.80M	154.07M	153.22M	144.30M	144.45M	139.94M
	EBIT
97.80M	100.00M	104.56M	87.93M	93.93M	86.78M
	EBITDA
112.80M	118.54M	118.50M	105.73M	117.04M	111.04M
	Net Income Common Stockholders
80.20M	82.32M	84.04M	68.22M	73.71M	66.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
159.60M	135.43M	107.90M	117.00M	130.61M	199.78M
	Total Assets
487.70M	450.86M	459.41M	433.85M	428.03M	515.60M
	Total Debt
21.00M	13.15M	32.80M	45.92M	9.40M	23.39M
	Net Debt
-138.60M	-122.28M	-75.10M	-71.08M	-121.21M	-176.39M
	Total Liabilities
175.60M	154.61M	174.43M	180.28M	171.63M	174.62M
	Stockholders Equity
312.10M	296.25M	284.98M	253.57M	256.40M	340.98M
Cash Flow		Free Cash Flow
126.00M	110.40M	55.50M	72.82M	109.29M	102.92M
	Operating Cash Flow
126.50M	114.37M	56.20M	80.61M	111.27M	103.08M
	Investing Cash Flow
-4.30M	-3.97M	-700.00K	-8.19M	-2.38M	-559.00K
	Financing Cash Flow
-83.00M	-82.87M	-64.60M	-86.03M	-178.06M	-19.92M

Softronic AB Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.55
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SOF.B, the sentiment is Positive. The current price of 21.55 is above the 20-day moving average (MA) of 21.27, above the 50-day MA of 21.34, and above the 200-day MA of 21.53, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 23.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SOF.B.

Softronic AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXS	77 Outperform	€1.57B	25.22	13.40%	1.42%	9.87%	-14.05%
SOF.B	75 Outperform	kr1.13B	14.09	25.51%	6.01%	1.57%	-1.85%
B3	69 Neutral	kr562.19M	6.48	42.33%	5.47%	6.75%	119.93%
IAR.B	65 Neutral	kr1.42B	16.41	18.36%	1.39%	4.59%	―
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%
BIM	57 Neutral	€935.45M	―	-15.28%	―	6.42%	28.24%