ScoreWhy is HMS Networks AB ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.98%
- Healthy long term growth as Net Sales has grown by an annual rate of 19.54% and Operating profit at 25.95%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 30.01
2
The company has declared positive results in Mar'2025 after 5 consecutive negative quarters
- OPERATING CASH FLOW(Y) Highest at SEK 771.02 MM
- RAW MATERIAL COST(Y) Fallen by 0.15% (YoY)
3
With ROE of 13.32%, it has a very expensive valuation with a 6.69 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 18.06%, its profits have fallen by -3.7%
4
Market Beating Performance
- The stock has generated a return of 18.06% in the last 1 year, much higher than market (OMX Stockholm 30) returns of 8.01%
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?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
HMS Networks AB
18.06%
0.17
41.31%
OMX Stockholm 30
8.01%
0.44
18.11%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.54%
EBIT Growth (5y)
25.95%
EBIT to Interest (avg)
30.01
Debt to EBITDA (avg)
0.54
Net Debt to Equity (avg)
0.76
Sales to Capital Employed (avg)
0.91
Tax Ratio
14.67%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
31.42%
ROE (avg)
23.98%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
50
Industry P/E
Price to Book Value
6.69
EV to EBIT
32.94
EV to EBITDA
24.35
EV to Capital Employed
4.28
EV to Sales
7.40
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
13.00%
ROE (Latest)
13.32%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
OPERATING CASH FLOW(Y)
Highest at SEK 771.02 MM
RAW MATERIAL COST(Y)
Fallen by 0.15% (YoY
-4What is not working for the Company
ROCE(HY)
Lowest at 11.21%
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.54%
Here's what is working for HMS Networks AB
Operating Cash Flow
Highest at SEK 771.02 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (SEK MM)
Raw Material Cost
Fallen by 0.15% (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
Inventory Turnover Ratio
Lowest at 1.54% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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