ScoreWhy is Observit AB ?
1
Poor Management Efficiency with a low ROE of 7.79%
- The company has been able to generate a Return on Equity (avg) of 7.79% signifying low profitability per unit of shareholders funds
2
Company has a low Debt to Equity ratio (avg) at times
3
Low Debt Company with Strong Long Term Fundamental Strength
4
The company declared very negative results in Dec'24 after flat results in Sep'24
- INTEREST(9M) At SEK 0.35 MM has Grown at inf%
- NET PROFIT(HY) At SEK -0.11 MM has Grown at -116.02%
- RAW MATERIAL COST(Y) Grown by 39.06% (YoY)
5
With ROE of 9.15%, it has a very expensive valuation with a 16.27 Price to Book Value
- Over the past year, while the stock has generated a return of 0.63%, its profits have fallen by -14.6%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Observit AB should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Observit AB for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Observit AB
0.0%
3.75
44.36%
OMX Stockholm 30
8.45%
0.44
18.11%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
27.86%
EBIT Growth (5y)
95.19%
EBIT to Interest (avg)
1.63
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.07
Sales to Capital Employed (avg)
2.70
Tax Ratio
59.86%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.00%
ROE (avg)
7.79%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
178
Industry P/E
Price to Book Value
16.27
EV to EBIT
114.13
EV to EBITDA
36.67
EV to Capital Employed
16.00
EV to Sales
4.87
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
14.02%
ROE (Latest)
9.15%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
NET SALES(9M)
Higher at SEK 51.93 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 7.11%
-15What is not working for the Company
INTEREST(9M)
At SEK 0.35 MM has Grown at inf%
NET PROFIT(HY)
At SEK -0.11 MM has Grown at -116.02%
RAW MATERIAL COST(Y)
Grown by 39.06% (YoY
Here's what is working for Observit AB
Debtors Turnover Ratio
Highest at 7.11%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Higher at SEK 51.93 MM
than preceding 12 month period ended Mar 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Sales (SEK MM)
Depreciation
Highest at SEK 1.56 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (SEK MM)
Here's what is not working for Observit AB
Net Profit
At SEK -0.11 MM has Grown at -116.02%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (SEK MM)
Interest
At SEK 0.35 MM has Grown at inf%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SEK MM)
Raw Material Cost
Grown by 39.06% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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