Enea AB

Enea maintains a conservative capital structure with a debt-to-equity ratio of 0.28, indicating a relatively low reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 0.93, suggesting that its current liabilities slightly exceed its current assets. Free cash flow stands at 77.3 million SEK, which supports operational flexibility and potential reinvestment.

Profitability metrics show a return on equity (ROE) of 1.94% and a return on assets (ROA) of 1.29%, both of which are below the industry median for IT Services & Consulting. This suggests that Enea is underperforming in terms of capital efficiency and asset utilization compared to its peers.

Geographically, Enea's revenue is concentrated in a few key markets, with a significant portion derived from the Nordic region. The company's exposure to this region increases its vulnerability to local economic fluctuations and regulatory changes. Segment-wise, Enea operates primarily in IT Services, with no material diversification into other business lines.

Looking ahead, Enea's revenue is projected to grow modestly, with a year-over-year increase of approximately 3.5% in the current fiscal year. This growth is driven by continued demand for digital transformation services and expansion in existing client relationships. However, the company faces competitive pressures and margin compression, which could limit its ability to sustain higher growth rates in the long term.

Risk factors include a medium liquidity risk due to the current ratio being below 1, and a low dilution risk as the company has not issued additional shares recently. The net cash position is negative after subtracting total debt, which could constrain the company's ability to fund new initiatives without external financing.

Recent events include the release of Q4 financial results, which showed a slight improvement in operating income compared to the previous year. The company also announced a strategic partnership to expand its cloud services offering, which is expected to drive future revenue growth.

Cash conversion of 4.61 is best-in-class, significantly outperforming the cohort median of 1.0.

The single analyst consensus price target of 92.5 SEK implies 22.7% upside from the current market price.

Long-term debt decreased to 303 million SEK in FY-1, reflecting a consistent deleveraging trend over recent years.

Revenue remained relatively stable with a 0.4% CAGR over the last four years, demonstrating resilience.

The company carries a high credit risk flag, suggesting potential difficulties in meeting financial obligations.

Revenue kr 242.7M, +11,8% YoY; Operating income +1 162,5% YoY.

• ▍Revenue kr 242.7M, +11,8% YoY
• ▍Operating income +1 162,5% YoY
• ▍Net income +188,3% YoY
• ▍Free cash flow +147,2% YoY
• ▍Net margin 6.8%

Revenue kr 240.8M, −6,5% YoY; Operating income +8,6% YoY.

• ▍Revenue kr 240.8M, −6,5% YoY
• ▍Operating income +8,6% YoY
• ▍Net income −55,1% YoY
• ▍Free cash flow −64,5% YoY
• ▍Net margin 17.7%

Revenue kr 214.4M, −1,2% YoY; Operating income +16,8% YoY.

• ▍Revenue kr 214.4M, −1,2% YoY
• ▍Operating income +16,8% YoY
• ▍Net income +827,0% YoY
• ▍Free cash flow +57,0% YoY
• ▍Net margin 16.0%

Revenue kr 227.8M, −4,9% YoY; Operating income −8,8% YoY.

• ▍Revenue kr 227.8M, −4,9% YoY
• ▍Operating income −8,8% YoY
• ▍Net income −125,2% YoY
• ▍Free cash flow −60,9% YoY
• ▍Net margin -3.8%

Revenue kr 217.0M; Operating income kr 1.6M.

• ▍Revenue kr 217.0M
• ▍Operating income kr 1.6M
• ▍Net margin -8.7%

Revenue kr 257.6M; Operating income kr 45.1M.

• ▍Revenue kr 257.6M
• ▍Operating income kr 45.1M
• ▍Net margin 36.7%

Revenue kr 217.1M; Operating income kr 29.2M.

• ▍Revenue kr 217.1M
• ▍Operating income kr 29.2M
• ▍Net margin 1.7%

Revenue kr 239.5M; Operating income kr 31.9M.

• ▍Revenue kr 239.5M
• ▍Operating income kr 31.9M
• ▍Net margin 14.2%

Revenue kr 900.0M, −2,2% YoY; Operating income −7,1% YoY.

• ▍Revenue kr 900.0M, −2,2% YoY
• ▍Operating income −7,1% YoY
• ▍Net income −65,5% YoY
• ▍Free cash flow −50,4% YoY
• ▍Net margin 5.5%

Revenue kr 920.2M, −1,5% YoY; Operating income +124,5% YoY.

• ▍Revenue kr 920.2M, −1,5% YoY
• ▍Operating income +124,5% YoY
• ▍Net income +126,0% YoY
• ▍Free cash flow +147,7% YoY
• ▍Net margin 15.5%

Revenue kr 934.5M, −3,1% YoY; Operating income −522,8% YoY.

• ▍Revenue kr 934.5M, −3,1% YoY
• ▍Operating income −522,8% YoY
• ▍Net income −345,0% YoY
• ▍Free cash flow −417,3% YoY
• ▍Net margin -58.9%

Revenue kr 964.7M, +8,7% YoY; Operating income −40,3% YoY.

• ▍Revenue kr 964.7M, +8,7% YoY
• ▍Operating income −40,3% YoY
• ▍Net income +12,3% YoY
• ▍Free cash flow −28,5% YoY
• ▍Net margin 23.3%