Linc AB () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Industrivärden AB

LE Lundbergföretagen AB

Traction AB

Ratos AB

Storskogen Group AB

Linc AB

Kinnevik AB

Investment AB Latour

ACQ Bure AB

Bure Equity AB

Svolder AB

Why is Linc AB ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.39%

Poor long term growth as Operating profit has grown by an annual rate of -193.96%
The company has been able to generate a Return on Equity (avg) of 4.39% signifying low profitability per unit of shareholders funds

Healthy long term growth as Net Sales has grown by an annual rate of 59.95%

Flat results in Jun 26

INTEREST(9M) At SEK 0.24 MM has Grown at inf%
NET SALES(HY) At SEK 1.73 MM has Grown at -65.3%
PRE-TAX PROFIT(Q) At SEK 243.63 MM has Fallen at -33.99%

With ROE of 9.86%, it has a fair valuation with a 0.97 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.03%, its profits have risen by 71.7% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -9.03% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Linc AB should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Linc AB for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Linc AB

-9.03%

-0.65

28.32%

OMX Stockholm 30

27.7%

1.79

15.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

59.95%

EBIT Growth (5y)

-193.96%

EBIT to Interest (avg)

-54.98

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.01%

ROE (avg)

4.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.97

EV to EBIT

9.10

EV to EBITDA

9.10

EV to Capital Employed

0.97

EV to Sales

641.90

PEG Ratio

0.14

Dividend Yield

ROCE (Latest)

10.68%

ROE (Latest)

9.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 18.66 MM

NET PROFIT(HY)

Higher at SEK 81.24 MM

NET SALES(9M)

Higher at SEK 5.94 MM

-14What is not working for the Company

INTEREST(9M)

At SEK 0.24 MM has Grown at inf%

NET SALES(HY)

At SEK 1.73 MM has Grown at -65.3%

PRE-TAX PROFIT(Q)

At SEK 243.63 MM has Fallen at -33.99%

RAW MATERIAL COST(Y)

Grown by 5,099% (YoY

CASH AND EQV(HY)

Lowest at SEK 403.98 MM

DEBT-EQUITY RATIO (HY)

Highest at -3.77 %

NET PROFIT(Q)

Fallen at -26.42%

Here's what is working for Linc AB

Operating Cash Flow

Highest at SEK 18.66 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Here's what is not working for Linc AB

Net Sales

At SEK 1.73 MM has Grown at -65.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (SEK MM)

Interest

At SEK 0.24 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Pre-Tax Profit

At SEK 243.63 MM has Fallen at -33.99%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

Fallen at -26.42%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

Cash and Eqv

Lowest at SEK 403.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -3.77 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 5,099% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales