Net Insight AB (NETI B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Telefonaktiebolaget LM Ericsson

Waystream Group AB

Ependion AB

Doro AB

Net Insight AB

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Irisity AB

Maven Wireless Sweden AB

GomSpace Group AB

INVISIO AB

AAC Clyde Space AB

Why is Net Insight AB ?

Poor Management Efficiency with a low ROE of 6.15%

The company has been able to generate a Return on Equity (avg) of 6.15% signifying low profitability per unit of shareholders funds

The company has declared negative results in Dec'2024 after 2 consecutive positive quarters

INTEREST(9M) At SEK 5.09 MM has Grown at inf%
PRE-TAX PROFIT(Q) At SEK -0.29 MM has Fallen at -102%
NET PROFIT(Q) At SEK -0.68 MM has Fallen at -106.35%

With ROE of 1.93%, it has a expensive valuation with a 2.21 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 -51.07%, its profits have fallen by -85.9%

Below par performance in long term as well as near term

Along with generating -51.07% 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 sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Net Insight AB for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Net Insight AB

-51.07%

-0.53

60.77%

OMX Stockholm 30

8.01%

0.44

18.11%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.28%

EBIT Growth (5y)

73.10%

EBIT to Interest (avg)

35.55

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.89

Tax Ratio

25.16%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

12.80%

ROE (avg)

6.15%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

114

Industry P/E

Price to Book Value

2.21

EV to EBIT

70.83

EV to EBITDA

23.71

EV to Capital Employed

2.40

EV to Sales

2.30

PEG Ratio

Dividend Yield

ROCE (Latest)

3.39%

ROE (Latest)

1.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-28What is not working for the Company

INTEREST(9M)

At SEK 5.09 MM has Grown at inf%

PRE-TAX PROFIT(Q)

At SEK -0.29 MM has Fallen at -102%

NET PROFIT(Q)

At SEK -0.68 MM has Fallen at -106.35%

OPERATING CASH FLOW(Y)

Lowest at SEK 13.27 MM

ROCE(HY)

Lowest at 0.28%

RAW MATERIAL COST(Y)

Grown by 16.3% (YoY

CASH AND EQV(HY)

Lowest at SEK 254.09 MM

DEBT-EQUITY RATIO (HY)

Highest at -8.32 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.1%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.21%

Here's what is not working for Net Insight AB

Interest

At SEK 5.09 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 -0.29 MM has Fallen at -102%

over average net sales of the previous four periods of SEK 14.32 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK -0.68 MM has Fallen at -106.35%

over average net sales of the previous four periods of SEK 10.72 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Operating Cash Flow

Lowest at SEK 13.27 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Cash and Eqv

Lowest at SEK 254.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -8.32 %

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

Inventory Turnover Ratio

Lowest at 2.1%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.21%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 16.3% (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