Observit 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

Observit AB

Why is Observit AB ?

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

Negative results in Mar 26

OPERATING CASH FLOW(Y) Lowest at SEK 3.15 MM
PRE-TAX PROFIT(Q) At SEK 0.33 MM has Fallen at -48.46%
NET PROFIT(Q) At SEK 0.33 MM has Fallen at -48.46%

With ROE of 2.34%, it has a expensive valuation with a 5.55 Price to Book Value

Over the past year, while the stock has generated a return of 13.65%, its profits have risen by 44% ; the PEG ratio of the company is 3.3

Underperformed the market in the last 1 year

The stock has generated a return of 13.65% in the last 1 year, much lower than market (OMX Stockholm 30) returns of 28.68%

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 Software Products)

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

Is Observit AB for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Observit AB

13.65%

4.86

47.18%

OMX Stockholm 30

28.68%

1.80

15.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.10%

EBIT Growth (5y)

38.56%

EBIT to Interest (avg)

1.63

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

2.50

Tax Ratio

59.86%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.00%

ROE (avg)

7.79%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

237

Industry P/E

Price to Book Value

5.55

EV to EBIT

141.40

EV to EBITDA

27.87

EV to Capital Employed

9.45

EV to Sales

3.59

PEG Ratio

3.29

Dividend Yield

ROCE (Latest)

6.69%

ROE (Latest)

2.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -57.44% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -44.8 %

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 3.15 MM

PRE-TAX PROFIT(Q)

At SEK 0.33 MM has Fallen at -48.46%

NET PROFIT(Q)

At SEK 0.33 MM has Fallen at -48.46%

INVENTORY TURNOVER RATIO(HY)

Lowest at 29.46 times

NET SALES(Q)

Lowest at SEK 14.08 MM

Here's what is working for Observit AB

Debt-Equity Ratio

Lowest at -44.8 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -57.44% (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

Depreciation

Highest at SEK 1.8 MM

in the last five periods

MOJO 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

Pre-Tax Profit

At SEK 0.33 MM has Fallen at -48.46%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 0.33 MM has Fallen at -48.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Operating Cash Flow

Lowest at SEK 3.15 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Inventory Turnover Ratio

Lowest at 29.46 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at SEK 14.08 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)