Qt Group Oyj

Qt Group maintains a liquidity position with a current ratio of 1.47, indicating moderate short-term financial flexibility. The company's price-to-book ratio of 3.45 and price-to-tangible-book ratio of 3.45 suggest a premium valuation relative to its equity base. However, the debt-to-equity ratio of 0.68 indicates a moderate leverage position, with long-term debt of EUR 143.22 million against total equity of EUR 209.52 million.

Profitability metrics show a return on equity (ROE) of 15.17% and return on assets (ROA) of 7.15%, both exceeding the typical thresholds for software firms. The operating margin of 19.67% (calculated from operating income of EUR 42.54 million on revenue of EUR 216.28 million) is strong, though the gross margin of 97.56% (calculated from gross profit of EUR 210.99 million) is exceptionally high, suggesting minimal direct production costs.

The company's revenue is concentrated in a single business segment, with no disclosed geographic breakdown. This lack of diversification may expose the company to sector-specific risks, particularly in the software development tools market.

Outlook data indicates a projected revenue growth of 5.2% for the current fiscal year and 3.8% for the next fiscal year. This growth is supported by a free cash flow of EUR 43.98 million and operating cash flow of EUR 40.22 million, which provide financial flexibility for reinvestment or shareholder returns.

The risk assessment highlights a medium liquidity risk due to negative net cash after subtracting total debt. While dilution risk is currently low, the company's capital structure and potential for future financing activities should be monitored. No dilution sources were identified in the latest filings, and the dilution near-term probability is assessed as low.

Recent events include the release of the latest financial report, which showed a net income of EUR 31.79 million and revenue of EUR 216.28 million. Analysts have provided a wide range of price targets, from EUR 14.50 to EUR 38.00, with a mean recommendation of 2.50 (Hold).