HMS Networks AB (publ)
HMS Networks AB (publ) Fundamental Analysis
HMS Networks AB (publ) (HMNKF) shows moderate financial fundamentals with a PE ratio of 43.33, profit margin of 13.17%, and ROE of 13.80%. The company generates $3.7B in annual revenue with strong year-over-year growth of 16.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HMNKF's fundamental strength across five key dimensions:
Efficiency Score
WeakHMNKF struggles to generate sufficient returns from assets.
Valuation Score
ModerateHMNKF shows balanced valuation metrics.
Growth Score
ExcellentHMNKF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHMNKF maintains a strong and stable balance sheet.
Profitability Score
WeakHMNKF struggles to sustain strong margins.
Key Financial Metrics
Is HMNKF Expensive or Cheap?
P/E Ratio
HMNKF trades at 43.33 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HMNKF's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values HMS Networks AB (publ) at 5.60 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.67 times EBITDA. This signals the market has high growth expectations.
How Well Does HMNKF Make Money?
Net Profit Margin
For every $100 in sales, HMS Networks AB (publ) keeps $13.17 as profit after all expenses.
Operating Margin
Core operations generate 24.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.80 in profit for every $100 of shareholder equity.
ROA
HMS Networks AB (publ) generates $7.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HMS Networks AB (publ) generates strong operating cash flow of $937.74M, reflecting robust business health.
Free Cash Flow
HMS Networks AB (publ) generates strong free cash flow of $780.82M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.56 in free cash annually.
FCF Yield
HMNKF converts 3.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How HMNKF Stacks Against Its Sector Peers
| Metric | HMNKF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.33 | 36.81 | Worse (Expensive) |
| ROE | 13.80% | 974.00% | Weak |
| Net Margin | 13.17% | 5908812370.00% | Weak |
| Debt/Equity | 0.57 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.52 | 4.93 | Neutral |
| ROA | 7.11% | -294678.00% (disorted) | Weak |
HMNKF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HMS Networks AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
126.72%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
80.96%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
120.75%
Industry Style: Growth, Innovation, High Beta
High Growth