ScoreWhy is HMS Networks AB ?
1
High Management Efficiency with a high ROE of 23.98%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 30.01
3
Healthy long term growth as Net Sales has grown by an annual rate of 19.54% and Operating profit at 25.41%
4
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at SEK 940.28 MM
- RAW MATERIAL COST(Y) Fallen by 1% (YoY)
- NET SALES(Q) Highest at SEK 971 MM
5
With ROE of 13.92%, it has a fair valuation with a 6.40 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 26.66%, its profits have risen by 28.8% ; the PEG ratio of the company is 1.6
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to HMS Networks AB should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is HMS Networks AB for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
HMS Networks AB
26.66%
0.53
35.78%
OMX Stockholm 30
30.13%
1.89
15.95%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.54%
EBIT Growth (5y)
25.41%
EBIT to Interest (avg)
30.01
Debt to EBITDA (avg)
0.54
Net Debt to Equity (avg)
0.76
Sales to Capital Employed (avg)
0.74
Tax Ratio
14.67%
Dividend Payout Ratio
55.40%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
31.42%
ROE (avg)
23.98%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
46
Industry P/E
Price to Book Value
6.40
EV to EBIT
26.77
EV to EBITDA
20.62
EV to Capital Employed
4.44
EV to Sales
6.78
PEG Ratio
1.60
Dividend Yield
NA
ROCE (Latest)
16.58%
ROE (Latest)
13.92%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at SEK 940.28 MM
RAW MATERIAL COST(Y)
Fallen by 1% (YoY
NET SALES(Q)
Highest at SEK 971 MM
-4What is not working for the Company
CASH AND EQV(HY)
Lowest at SEK 148.39 MM
INTEREST(Q)
Highest at SEK 34 MM
Here's what is working for HMS Networks AB
Operating Cash Flow
Highest at SEK 940.28 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (SEK MM)
Net Sales
Highest at SEK 971 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (SEK MM)
Raw Material Cost
Fallen by 1% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for HMS Networks AB
Interest
At SEK 34 MM has Grown at 17.24%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SEK MM)
Interest
Highest at SEK 34 MM
in the last five periods and Increased by 17.24% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SEK MM)
Cash and Eqv
Lowest at SEK 148.39 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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