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Research

Solwers: Lot of chips in the balance sheet

By Petri GostowskiCo. Head of Research
Solwers
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The H1 figures published by Solwers on Thursday met our expectations. We have lowered our short-term organic growth forecasts considering the investment outlook, the competitive situation that limits price increases and the weak SEK. Relative to the earnings level of the current businesses, the valuation of the share is fairly neutral. We expect the company to carry out sensible acquisitions with its considerable cash resources. Improving the efficiency of capital use is also expected to act as a driver of the share value. Thus, we reiterate our Accumulate recommendation even though, reflecting the estimate changes, we cut our target price to EUR 5.0 (was EUR 6.0).

Solwers

4.32EUR31.08.2023, 18.00
5.00EURTarget price
Accumulate
Changed from:Accumulate
Recommendation updated:31.08.2023

Solwers is a consulting company focused on the industrial sector. The company specializes in digital solutions that concern planning and project management services. Examples of the company's services include architecture, technical consulting, environmental monitoring, project management, circular economy, and digital solutions. The customers are found in a number of industries and mainly among small and medium-sized corporate customers. Solwers operates worldwide with the largest presence in the Nordic region.

Read more on company page

Key Estimate Figures31.08.2023

202223e24e
Revenue62.863.664.0
growth-%40.6 %1.2 %0.7 %
EBIT (adj.)5.14.54.4
EBIT-% (adj.)8.1 %7.2 %6.9 %
EPS (adj.)0.350.250.26
Dividend0.070.090.10
Dividend %1.7 %3.9 %4.4 %
P/E (adj.)12.29.08.8
EV/EBITDA6.03.93.6
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