HMS Networks AB (publ) (HMS.ST) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-39.6%

SEK 292.78

vs SEK 484.80 price

Levered DCF

SEK 234.79

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

5.93

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	48.33×	68.31×	40.67×	31.18×	73.32×	54.28×	39.01×	33.46×
P/B	6.05×	6.04×	12×	9.84×	22.12×	10.08×	8.06×	6.69×
P/S	5.88×	6.92×	7.67×	6.32×	13.2×	8.27×	5.3×	4.19×
EV / EBITDA	22.71×	34.47×	27.31×	21.6×	46.82×	31.28×	25.87×	20.98×
Gross margin	63.0%	62.6%	65.1%	62.9%	62.4%	62.0%	61.1%	61.1%
Operating margin	25.2%	16.4%	24.9%	26.0%	22.6%	19.6%	16.0%	18.4%
Net margin	12.2%	10.1%	18.9%	20.3%	18.0%	15.2%	13.6%	12.5%
Current ratio	1.62×	1.93×	1.95×	1.51×	1.56×	1.74×	1.69×	1.57×
Debt / equity	0.7×	0.9×	0.14×	0.19×	0.07×	0.23×	0.44×	0.44×
Interest coverage	8.05×	3.8×	42.78×	80.48×	69.04×	38.48×	31.99×	43.21×
Dividend yield	0.0%	1.1%	0.8%	0.9%	0.4%	0.0%	1.0%	1.2%
Payout ratio	0.9%	72.6%	32.7%	27.6%	26.3%	0.0%	40.7%	40.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.5%	8.8%	29.5%	31.5%	30.1%	18.6%	20.7%	20.0%
Return on invested capital	10.0%	6.1%	24.5%	25.0%	20.3%	14.6%	14.2%	13.9%
Return on assets	6.6%	4.1%	19.0%	18.6%	16.1%	12.2%	11.7%	10.9%
Free cash flow yield	3.9%	2.2%	1.9%	2.2%	1.8%	2.7%	2.3%	2.8%
Earnings yield	2.1%	1.5%	2.5%	3.2%	1.4%	1.8%	2.6%	3.0%
Enterprise value	SEK 23.4B	SEK 24.2B	SEK 23.3B	SEK 16B	SEK 25.9B	SEK 12.3B	SEK 8.4B	SEK 6B
Net debt / EBITDA	2.28×	4.38×	0.17×	0.21×	-0.16×	0.49×	1.18×	1.11×
Cash conversion cycle (days)	201	284	164	121	77	96	98	87