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

Sinch AB

Fortnox AB

Embracer Group AB

Evolution AB

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BYGGFAKTA GROUP Nordic HoldCo AB

Vitec Software Group AB

Stillfront Group AB

Paradox Interactive AB

Modern Times Group MTG AB

Truecaller 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%

Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at SEK 1,110.29 MM
RAW MATERIAL COST(Y) Fallen by -3.46% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 806.95 times

With ROE of 9.10%, it has a very expensive valuation with a 3.14 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 -60.14%, its profits have risen by 6.8%

Below par performance in long term as well as near term

Along with generating -60.14% 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 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

-62.09%

-1.36

42.92%

OMX Stockholm 30

10.55%

0.54

18.55%

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

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

3.14

EV to EBIT

23.43

EV to EBITDA

12.78

EV to Capital Employed

2.47

EV to Sales

4.80

PEG Ratio

Dividend Yield

1.32%

ROCE (Latest)

10.54%

ROE (Latest)

9.10%

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 1,110.29 MM

RAW MATERIAL COST(Y)

Fallen by -3.46% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 806.95 times

NET SALES(Q)

Highest at SEK 983.1 MM

OPERATING PROFIT(Q)

Highest at SEK 370.66 MM

PRE-TAX PROFIT(Q)

Highest at SEK 174.84 MM

NET PROFIT(Q)

Highest at SEK 137.44 MM

EPS(Q)

Highest at SEK 3.4

-7What is not working for the Company

ROCE(HY)

Lowest at 8.93%

INTEREST(Q)

At SEK 27.89 MM has Grown at 14.67%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.55 times

DIVIDEND PER SHARE(HY)

Lowest at SEK 5.55

Here's what is working for Vitec Software Group AB

Operating Cash Flow

Highest at SEK 1,110.29 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 983.1 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SEK MM)

Operating Profit

Highest at SEK 370.66 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 174.84 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 137.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

EPS

Highest at SEK 3.4

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SEK)

Inventory Turnover Ratio

Highest at 806.95 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.46% (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 Vitec Software Group AB

Interest

At SEK 27.89 MM has Grown at 14.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Debtors Turnover Ratio

Lowest at 5.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at SEK 5.55

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 (%)