Sinch AB (SINCH) 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

Sinch AB

Modern Times Group MTG AB

Fortnox AB

Evolution AB

Vitec Software Group AB

BYGGFAKTA GROUP Nordic HoldCo AB

Stillfront Group AB

Sectra AB

Paradox Interactive AB

Truecaller AB

Embracer Group AB

Why is Sinch AB ?

Healthy long term growth as Net Sales has grown by an annual rate of 27.54% and Operating profit at 16.64%

With a growth in Operating Profit of 120.81%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at SEK 2,562 MM
PRE-TAX PROFIT(Q) At SEK 199 MM has Grown at 220.97%
NET PROFIT(Q) At SEK 121.03 MM has Grown at 426.21%

With ROE of 1.75%, it has a very expensive valuation with a 0.79 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 45.95%, its profits have risen by 541% ; the PEG ratio of the company is 0.1

Market Beating performance in long term as well as near term

Along with generating 45.95% returns in the last 1 year, the stock has outperformed OMX Stockholm 30 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Sinch 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 Sinch AB for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sinch AB

45.95%

1.08

57.69%

OMX Stockholm 30

30.13%

1.89

15.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.54%

EBIT Growth (5y)

16.64%

EBIT to Interest (avg)

1.07

Debt to EBITDA (avg)

2.73

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

0.79

Tax Ratio

1.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.82%

ROE (avg)

2.30%

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

0.79

EV to EBIT

19.19

EV to EBITDA

6.75

EV to Capital Employed

0.84

EV to Sales

0.90

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

4.35%

ROE (Latest)

1.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 2,562 MM

PRE-TAX PROFIT(Q)

At SEK 199 MM has Grown at 220.97%

NET PROFIT(Q)

At SEK 121.03 MM has Grown at 426.21%

ROCE(HY)

Highest at 1.51%

-9What is not working for the Company

INTEREST(Q)

At SEK 474 MM has Grown at 50.96%

RAW MATERIAL COST(Y)

Grown by 10.99% (YoY

CASH AND EQV(HY)

Lowest at SEK 969 MM

DEBT-EQUITY RATIO (HY)

Highest at 34.61 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.56 times

NET SALES(Q)

Lowest at SEK 6,493 MM

OPERATING PROFIT(Q)

Lowest at SEK 817 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.58 %

Here's what is working for Sinch AB

Pre-Tax Profit

At SEK 199 MM has Grown at 220.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 121.03 MM has Grown at 426.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SEK MM)

Operating Cash Flow

Highest at SEK 2,562 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)

Here's what is not working for Sinch AB

Interest

At SEK 474 MM has Grown at 50.96%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Net Sales

Lowest at SEK 6,493 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Operating Profit

Lowest at SEK 817 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 12.58 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at SEK 969 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 34.61 %

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

Debtors Turnover Ratio

Lowest at 5.56 times

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 10.99% (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