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

The company declared very negative results in Dec'24 after flat results in Sep'24

OPERATING CASH FLOW(Y) Lowest at SEK 0.09 MM
RAW MATERIAL COST(Y) Grown by 423.53% (YoY)
NET SALES(Q) Fallen at -22.36%

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 -6.47%, its profits have fallen by -14.6%

Below par performance in long term as well as near term

Along with generating -6.47% 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 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

-5.57%

3.00

44.46%

OMX Stockholm 30

11.31%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.01%

EBIT Growth (5y)

25.64%

EBIT to Interest (avg)

1.63

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

2.60

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

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

Dividend Yield

ROCE (Latest)

14.02%

ROE (Latest)

9.15%

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

6What is working for the Company

NET PROFIT(9M)

At SEK 0.4 MM has Grown at 303.03%

DEBT-EQUITY RATIO (HY)

Lowest at -46.13 %

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 0.09 MM

RAW MATERIAL COST(Y)

Grown by 423.53% (YoY

NET SALES(Q)

Fallen at -22.36%

OPERATING PROFIT(Q)

Lowest at SEK 0.55 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.59 %

PRE-TAX PROFIT(Q)

Lowest at SEK -0.93 MM

NET PROFIT(Q)

Lowest at SEK -1.81 MM

EPS(Q)

Lowest at SEK -0

Here's what is working for Observit AB

Debt-Equity Ratio

Lowest at -46.13 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Depreciation

Highest at SEK 1.73 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 -0.93 MM has Fallen at -361.13%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK -1.81 MM has Fallen at -139%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Operating Cash Flow

Lowest at SEK 0.09 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)

Net Sales

Fallen at -22.36%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Operating Profit

Lowest at SEK 0.55 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 3.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK -0.93 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK -1.81 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK -0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)

Raw Material Cost

Grown by 423.53% (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