Transtema Group AB (TRANS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nodebis Applications AB

HMS Networks AB

Vertiseit AB

Arcario Consulting Enterprise Services, Inc.

Advenica AB

Transtema Group AB

B3 Consulting Group AB

Physitrack Plc

Addnode Group AB

Adverty AB

Genesis IT AB

Why is Transtema Group AB ?

High Management Efficiency with a high ROCE of 20.55%

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 13.52% and Operating profit at 9.59%

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at SEK 56.29 MM
NET PROFIT(9M) At SEK 10.52 MM has Grown at -28.29%
INTEREST(9M) At SEK 67.44 MM has Grown at 74.35%

With ROE of 4.75%, it has a attractive valuation with a 0.90 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 -46.01%, its profits have fallen by -55.9%

Below par performance in long term as well as near term

Along with generating -46.01% 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 hold?

Overall Portfolio exposure to Transtema Group 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 Transtema Group AB for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Transtema Group AB

-47.23%

-0.97

39.50%

OMX Stockholm 30

8.01%

0.51

18.11%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.52%

EBIT Growth (5y)

9.59%

EBIT to Interest (avg)

4.00

Debt to EBITDA (avg)

0.57

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

3.11

Tax Ratio

53.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

20.55%

ROE (avg)

24.40%

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

0.90

EV to EBIT

11.44

EV to EBITDA

4.17

EV to Capital Employed

0.94

EV to Sales

0.30

PEG Ratio

Dividend Yield

ROCE (Latest)

8.19%

ROE (Latest)

4.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

15What is working for the Company

PRE-TAX PROFIT(Q)

At SEK 14.03 MM has Grown at 994.62%

NET PROFIT(Q)

At SEK 12.13 MM has Grown at 1,197.33%

RAW MATERIAL COST(Y)

Fallen by -44.9% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 11.67%

EPS(Q)

Highest at SEK 0.32

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 56.29 MM

NET PROFIT(9M)

At SEK 10.52 MM has Grown at -28.29%

INTEREST(9M)

At SEK 67.44 MM has Grown at 74.35%

DEBT-EQUITY RATIO (HY)

Highest at 74.38 %

Here's what is working for Transtema Group AB

Pre-Tax Profit

At SEK 14.03 MM has Grown at 994.62%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 12.13 MM has Grown at 1,197.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SEK MM)

EPS

Highest at SEK 0.32

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SEK)

Debtors Turnover Ratio

Highest at 11.67%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -44.9% (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 Transtema Group AB

Interest

At SEK 67.44 MM has Grown at 74.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Operating Cash Flow

Lowest at SEK 56.29 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Debt-Equity Ratio

Highest at 74.38 %

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