CodeMill AB (publ)

CodeMill AB (publ) maintains a strong liquidity position with a current ratio of 1.22, indicating that it can cover its short-term liabilities with its short-term assets. The company's liquidity FPT (free cash flow to total debt) is robust, supported by a free cash flow of 5,391,000 SEK and long-term debt of 443,100 SEK, suggesting a solid ability to service its debt obligations. In terms of profitability, CodeMill's return on equity (ROE) of 7.33% and return on assets (ROA) of 4.07% are below the industry median for software companies, which typically report ROE and ROA in the double-digit range. The company's gross profit margin is 108.77%, which is unusually high and may indicate a mix of high-margin software sales and services. CodeMill's revenue is not segmented by geographic region or product line in the available data, making it difficult to assess geographic or product concentration risk. However, the company's primary business is in software, which is a global industry, and it is likely exposed to the Nordic market given its listing on the Stockholm Exchange. Looking ahead, CodeMill's revenue is expected to grow, though the exact rate is not specified in the available data. The company's operating cash flow of 14,547,000 SEK and free cash flow of 5,391,000 SEK suggest a strong cash-generating ability, which supports its growth initiatives. The company faces moderate liquidity risk due to its current ratio of 1.22, which is slightly above 1 but not significantly so. The risk assessment also notes that net cash is negative after subtracting total debt, indicating that the company has more debt than cash on hand. However, the dilution risk is low, and there are no immediate signs of significant share dilution. Recent events and filings do not indicate any major changes in the company's operations or financial strategy. The company's capital expenditure of -2,001,000 SEK suggests that it is generating more cash than it is investing in new capital assets, which could be a sign of a mature business with stable operations.