Vitec Software Group AB (VIT 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

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Embracer Group AB

Why is Vitec Software Group AB ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.95

Healthy long term growth as Net Sales has grown by an annual rate of 22.74% and Operating profit at 24.26%

The company has declared negative results in Mar'2026 after 2 consecutive positive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 819.14
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 5.4% (YoY)

With ROE of 9.45%, it has a very expensive valuation with a 1.99 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 -50.83%, its profits have risen by 2.7% ; the PEG ratio of the company is 8.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -50.83% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Vitec Software Group 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 Vitec Software Group AB for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Vitec Software Group AB

-50.83%

-1.35

43.16%

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)

22.74%

EBIT Growth (5y)

24.26%

EBIT to Interest (avg)

9.95

Debt to EBITDA (avg)

1.30

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

0.48

Tax Ratio

24.41%

Dividend Payout Ratio

33.57%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

12.22%

ROE (avg)

12.13%

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

1.99

EV to EBIT

16.32

EV to EBITDA

8.89

EV to Capital Employed

1.65

EV to Sales

3.32

PEG Ratio

8.18

Dividend Yield

1.05%

ROCE (Latest)

10.12%

ROE (Latest)

9.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 1,136.45 MM

-12What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 819.14

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 5.4% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 56.53 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 419.22 times

DIVIDEND PER SHARE(HY)

Lowest at SEK 7.48

INTEREST(Q)

Highest at SEK 42.17 MM

Here's what is working for Vitec Software Group AB

Operating Cash Flow

Highest at SEK 1,136.45 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)

Depreciation

Highest at SEK 165.23 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 Vitec Software Group AB

Interest

At SEK 42.17 MM has Grown at 51.2%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Interest Coverage Ratio

Lowest at 819.14

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at SEK 42.17 MM

in the last five periods and Increased by 51.2% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Debt-Equity Ratio

Highest at 56.53 %

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

Inventory Turnover Ratio

Lowest at 419.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at SEK 7.48

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (SEK)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 5.4% (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