Sectra AB (SECT 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Modern Times Group MTG AB

Fortnox AB

Evolution AB

Sinch AB

Sectra AB

Vitec Software Group AB

BYGGFAKTA GROUP Nordic HoldCo AB

Stillfront Group AB

Paradox Interactive AB

Truecaller AB

Embracer Group AB

Why is Sectra AB ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 29.18%

Healthy long term growth as Net Sales has grown by an annual rate of 16.22%
Company has very low debt and has enough cash to service the debt requirements

With a growth in Net Profit of 20.04%, the company declared Very Positive results in Apr 26

OPERATING CASH FLOW(Y) Highest at SEK 1,097.32 MM
CASH AND EQV(HY) Highest at SEK 3,163.46 MM
DEBT-EQUITY RATIO (HY) Lowest at -81.19 %

With ROE of 27.83%, it has a very expensive valuation with a 26.17 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -24.59%, its profits have fallen by -9.7%

Underperformed the market in the last 1 year

Even though the market (OMX Stockholm 30) has generated returns of 27.70% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.59% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sectra 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 Sectra AB for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sectra AB

-24.59%

0.24

33.41%

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)

16.22%

EBIT Growth (5y)

16.11%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.69

Sales to Capital Employed (avg)

1.80

Tax Ratio

22.66%

Dividend Payout Ratio

44.43%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

118.08%

ROE (avg)

29.18%

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

26.17

EV to EBIT

75.91

EV to EBITDA

69.09

EV to Capital Employed

81.21

EV to Sales

14.38

PEG Ratio

Dividend Yield

0.75%

ROCE (Latest)

106.97%

ROE (Latest)

27.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 1,097.32 MM

CASH AND EQV(HY)

Highest at SEK 3,163.46 MM

DEBT-EQUITY RATIO (HY)

Lowest at -81.19 %

DIVIDEND PER SHARE(HY)

Highest at SEK 2.33

NET SALES(Q)

Highest at SEK 1,033.21 MM

OPERATING PROFIT(Q)

Highest at SEK 222.46 MM

PRE-TAX PROFIT(Q)

Highest at SEK 222.2 MM

NET PROFIT(Q)

Highest at SEK 158.42 MM

EPS(Q)

Highest at SEK 0.82

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Sectra AB

Operating Cash Flow

Highest at SEK 1,097.32 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Net Sales

Highest at SEK 1,033.21 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SEK MM)

Operating Profit

Highest at SEK 222.46 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SEK MM)

Pre-Tax Profit

Highest at SEK 222.2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SEK MM)

Net Profit

Highest at SEK 158.42 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

EPS

Highest at SEK 0.82

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SEK)

Cash and Eqv

Highest at SEK 3,163.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -81.19 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at SEK 2.33

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (SEK)

Depreciation

Highest at SEK 23.5 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SEK MM)

Depreciation

At SEK 23.5 MM has Grown at 39.93%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (SEK MM)