ScoreWhy is Softronic AB ?
1
High Management Efficiency with a high ROE of 24.99%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 95.09
3
Poor long term growth as Net Sales has grown by an annual rate of 4.68% and Operating profit at -0.82% over the last 5 years
4
Flat results in Mar 26
- INTEREST(9M) At SEK 0.1 MM has Grown at inf%
- ROCE(HY) Lowest at 22.53%
5
With ROE of 22.86%, it has a very attractive valuation with a 3.81 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -4.00%, its profits have fallen by -19%
6
Below par performance in long term as well as near term
- Along with generating -4.00% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Softronic AB should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Softronic AB for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Softronic AB
-4.0%
-0.07
22.59%
OMX Stockholm 30
30.13%
1.89
15.95%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.68%
EBIT Growth (5y)
-0.82%
EBIT to Interest (avg)
95.09
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.47
Sales to Capital Employed (avg)
2.93
Tax Ratio
19.88%
Dividend Payout Ratio
106.55%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
57.51%
ROE (avg)
24.99%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
3.81
EV to EBIT
12.17
EV to EBITDA
9.71
EV to Capital Employed
5.28
EV to Sales
1.11
PEG Ratio
NA
Dividend Yield
14.94%
ROCE (Latest)
43.39%
ROE (Latest)
22.86%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -4.31% (YoY
NET SALES(Q)
Highest at SEK 275.8 MM
-6What is not working for the Company
INTEREST(9M)
At SEK 0.1 MM has Grown at inf%
ROCE(HY)
Lowest at 22.53%
Here's what is working for Softronic AB
Net Sales
Highest at SEK 275.8 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (SEK MM)
Raw Material Cost
Fallen by -4.31% (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
Here's what is not working for Softronic AB
Interest
At SEK 0.1 MM has Grown at inf%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SEK MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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