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

Modern Times Group MTG AB

Fortnox AB

Evolution AB

Sinch AB

Sectra AB

Vitec Software Group AB

BYGGFAKTA GROUP Nordic HoldCo AB

Stillfront Group AB

Paradox Interactive AB

Truecaller AB

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%

Flat results in Jun 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DEBT-EQUITY RATIO (HY) Highest at 63.23 %
INVENTORY TURNOVER RATIO(HY) Lowest at 380.11 times

With ROE of 9.12%, it has a attractive valuation with a 2.03 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 -37.04%, its profits have risen by 1.1% ; the PEG ratio of the company is 21.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -37.04% 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

-37.04%

-1.35

40.55%

OMX Stockholm 30

27.7%

1.79

15.50%

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)

7.64

Debt to EBITDA (avg)

1.58

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

0.47

Tax Ratio

23.68%

Dividend Payout Ratio

33.57%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

10.90%

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

2.03

EV to EBIT

17.47

EV to EBITDA

9.43

EV to Capital Employed

1.67

EV to Sales

3.50

PEG Ratio

21.84

Dividend Yield

0.98%

ROCE (Latest)

9.56%

ROE (Latest)

9.12%

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 1,143.21 MM

RAW MATERIAL COST(Y)

Fallen by -1.17% (YoY

CASH AND EQV(HY)

Highest at SEK 1,341.47 MM

OPERATING PROFIT(Q)

Highest at SEK 397.06 MM

OPERATING PROFIT MARGIN(Q)

Highest at 41.6 %

-9What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at 63.23 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 380.11 times

DIVIDEND PER SHARE(HY)

Lowest at SEK 8.01

INTEREST(Q)

Highest at SEK 48.99 MM

Here's what is working for Vitec Software Group AB

Operating Cash Flow

Highest at SEK 1,143.21 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)

Operating Profit

Highest at SEK 397.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SEK MM)

Operating Profit Margin

Highest at 41.6 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at SEK 1,341.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.17% (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

Depreciation

Highest at SEK 189.64 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 48.99 MM has Grown at 16.16%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Interest

Highest at SEK 48.99 MM

in the last five periods and Increased by 16.16% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Debt-Equity Ratio

Highest at 63.23 %

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 380.11 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 8.01

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 (%)