Sitowise Group Oyj

Sitowise Group Oyj maintains a debt-to-equity ratio of 0.81, indicating a moderate reliance on debt financing, and a current ratio of 1.12, suggesting limited short-term liquidity cushion. The company's liquidity position is assessed as medium risk, with free cash flow of EUR 2.63 million and operating cash flow of EUR 4.35 million, but net cash is negative after subtracting total debt. This implies that the company may need to manage its working capital and debt obligations carefully to maintain liquidity.

Profitability metrics show a return on equity of 0.49% and a return on assets of 0.21%, both of which are below the industry median for construction and engineering firms, indicating underperformance in capital efficiency and asset utilization. The operating margin is 3.8%, and the net margin is 0.11%, which are also below the industry median, suggesting that the company is not capturing as much value from its operations as its peers.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification, which increases exposure to regional economic fluctuations and regulatory changes. There is no information on revenue by geographic region, but the lack of diversification implies a high concentration risk.

Looking ahead, the company is expected to see a modest growth in revenue, with a projected increase of less than 5% in the current fiscal year and a similar trajectory in the next fiscal year. The capital expenditure of EUR -1.04 million indicates a reduction in investment in long-term assets, which may affect future growth potential. The risk assessment highlights a low dilution risk, with no significant dilution expected in the near term.

Recent filings and transcripts do not indicate any major strategic shifts or operational disruptions, but the company's financial performance suggests a need for operational improvements to enhance profitability and liquidity. Analysts have provided a mean price target of EUR 2.50, with a median of EUR 2.60, and a mean recommendation of 2.00, indicating a generally positive outlook, though not strongly bullish.

Analysts project 4.6% upside to a mean price target of EUR 2.50, reflecting a buy recommendation from three analysts.

Cash conversion of 7.45 significantly outperforms the construction cohort median of 0.66, indicating superior operational efficiency.

Gross profit remained robust at EUR 166.95 million in FY2026, demonstrating strong underlying revenue generation despite net losses.

Long-term debt decreased slightly to EUR 95.18 million in FY2026, suggesting modest leverage management amidst challenging earnings.

Dilution risk is assessed as low, providing relative stability for existing shareholders compared to higher-risk peers.

Debt-to-equity ratio of 0.81 places the company in the bottom quartile of its construction cohort peers.

Credit risk is flagged as high, indicating significant concerns regarding the company's ability to meet financial obligations.

Revenue €50.2M, +3,0% YoY; Operating income −10 851,7% YoY.

• ▍Revenue €50.2M, +3,0% YoY
• ▍Operating income −10 851,7% YoY
• ▍Net income −2 360,5% YoY
• ▍Free cash flow −6 464,9% YoY
• ▍Net margin -79.5%

Revenue €40.4M, −3,2% YoY; Operating income +318,7% YoY.

• ▍Revenue €40.4M, −3,2% YoY
• ▍Operating income +318,7% YoY
• ▍Net income +49,0% YoY
• ▍Free cash flow +26,4% YoY
• ▍Net margin -1.8%

Revenue €49.8M, −2,1% YoY; Operating income −6,0% YoY.

• ▍Revenue €49.8M, −2,1% YoY
• ▍Operating income −6,0% YoY
• ▍Net income −261,4% YoY
• ▍Free cash flow −10,7% YoY
• ▍Net margin -0.8%

Revenue €48.1M, −6,5% YoY; Operating income −113,7% YoY.

• ▍Revenue €48.1M, −6,5% YoY
• ▍Operating income −113,7% YoY
• ▍Net income −341,3% YoY
• ▍Free cash flow −62,9% YoY
• ▍Net margin -2.9%

Revenue €48.8M; Operating income -€354.0k.

• ▍Revenue €48.8M
• ▍Operating income -€354.0k
• ▍Net margin -3.3%

Revenue €41.8M; Operating income -€219.0k.

• ▍Revenue €41.8M
• ▍Operating income -€219.0k
• ▍Net margin -3.4%

Revenue €50.9M; Operating income €1.1M.

• ▍Revenue €50.9M
• ▍Operating income €1.1M
• ▍Net margin -0.2%

Revenue €51.5M; Operating income €2.0M.

• ▍Revenue €51.5M
• ▍Operating income €2.0M
• ▍Net margin 1.1%

Revenue €188.6M, −2,2% YoY; Operating income −1 617,5% YoY.

• ▍Revenue €188.6M, −2,2% YoY
• ▍Operating income −1 617,5% YoY
• ▍Net income −1 546,5% YoY
• ▍Free cash flow −558,1% YoY
• ▍Net margin -22.5%

Revenue €192.9M, −8,5% YoY; Operating income −78,9% YoY.

• ▍Revenue €192.9M, −8,5% YoY
• ▍Operating income −78,9% YoY
• ▍Net income −145,9% YoY
• ▍Free cash flow −25,5% YoY
• ▍Net margin -1.3%

Revenue €210.9M, +3,2% YoY; Operating income −11,1% YoY.

• ▍Revenue €210.9M, +3,2% YoY
• ▍Operating income −11,1% YoY
• ▍Net income −28,4% YoY
• ▍Free cash flow −15,2% YoY
• ▍Net margin 2.7%

Revenue €204.4M, +14,0% YoY; Operating income −19,6% YoY.

• ▍Revenue €204.4M, +14,0% YoY
• ▍Operating income −19,6% YoY
• ▍Net income +0,3% YoY
• ▍Free cash flow +259,4% YoY
• ▍Net margin 3.8%