2Mo·

A Danish gem—or is she just fodder for Mr. Prompt?

Hello, everyone,

In today's Sunday feature, we've ended up on Mr. Prompt's patio. And we want to surprise him with the performance.

( @Raketentoni )


A Danish gem—or will it end up on Mr. Prompt’s lunch plate?

That’s what we want to find out today. It seems the knot has come undone here following the earnings report—and is the market finally heading up?


I look forward to lots of comments.


Governments around the world face urgent and complex challenges: outdated IT systems, fragmented processes, regulatory pressure, and rising public expectations. But efforts at digital transformation often fail due to slow, expensive, and custom-built IT projects that are difficult to scale or adapt.


My friends, this is where cBrain comes in.


$CBRAIN (-4,93 %)

It offers a specially developed software platform that reimagines the way governments digitize their operations.


cBrain F2® is a modern, fully integrated digital platform developed from the ground up with and for the public sector.

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Unlike traditional custom systems, cBrain F2 is a commercial off-the-shelf (COTS) platform that is ready for immediate use, quickly configurable, and extensively tested. It enables governments to digitize complex processes such as permits, inspections, grants, and citizen services. All processes are delivered quickly, cost-effectively, and with minimal risk.

‍


Cbrain A/S is a Denmark-based software development company. It specializes in providing information technology (IT) solutions to optimize processes and workflows. The company offers services in the areas of document management, e-government, enterprise management, community services and management, as well as workflow management. The company develops and delivers solutions based on standard products: F2, which offers multiple front-end options and supports PC users as well as mobile phones and tablets, and M4, which handles customer relationship management (CRM) solutions. Its clients include organizations from the public, private, educational, and nonprofit sectors.


Earnings Call: cBrain kehrt im ersten Halbjahr 2026 auf Wachstumskurs zurück – Aktie legt deutlich zu

  • Investing.com
  • Aug. 21, 2026
  • cBrain’s revenue rose 6% to 140 million DKK in the first half of 2026, with an EBT margin of 26%, reversing the decline seen in 2025; shares jumped 8.16% to $72.9.
  • Revenue in Denmark rose 24% to DKK 111 million, while international sales declined to DKK 29 million; subscription revenue grew 8% and now accounts for 63% of total revenue.
  • The full-year 2026 outlook was maintained, with revenue growth of 10–15% and an EBT margin of 20–25%; growth of over 15% is expected for the second half of the year, which could potentially reach 25%.
  • The company is implementing its strategy for 2026–2028, which focuses on the integration of AI, environmental permits, and paperless government agencies with sovereign data capabilities.
  • U.S. expansion is gaining momentum through a contract in California and a proof-of-concept in Washington; the European Commission has recognized the platform as the most advanced.



cBrain sichert sich ersten Auftrag vom US-Bundesstaat Kalifornien

  • Investing.com
  • Aug. 18, 2026



April 29, 2026


cBrain erfasst den Wandel hin zu KI-gesteuerter Standardsoftware in der Regierung

Unternehmensmitteilung Nr. 06/2026 Brain erfasst den Wandel zu KI-gesteuerter Standardsoftware in der Regierung Kopenhagen, 29. April 2026 Die Regierung steht an einem Wendepunkt. Jahrzehntelang haben Regierungen...


Feb. 19, 2026

cBrain erhöht die Gewinnerwartungen für das Geschäftsjahr 2026

Unternehmensmitteilung Nr. 02/2026 cBrain erhöht die Gewinnerwartungen für das Geschäftsjahr 2026 Kopenhagen, 19. Februar 2026 cBrain® (NASDAQ: CBRAIN) hat kürzlich seine Strategie 2026–2028 bekannt gegeben...


Jan. 19, 2026

cBrain kündigt den Wachstumsplan der nächsten Phase und kurzfristige finanzielle Ziele für 2026 an

Unternehmensmitteilung Nr. 01/2026 cBrain kündigt Wachstumsplan für die nächste Phase und kurzfristige Finanzziele für 2026 an. Kopenhagen, 19. Januar 2026. cBrain® (NASDAQ: CBRAIN) befindet sich auf einem strategischen...

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Geographic Revenue Breakdown:

2025 (DKK)

Denmark 181 million

Germany 60.7 million

Countries outside the EU 8.78 million

Other EU Countries 798,000 thousand

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🔥 The Bottom Line

According to the latest MarketScreener forecasts, cBrain is showing very strong fundamental growth:

Revenue:

251 → 379 million DKK 🚀

EBIT:

59 → 118 million DKK 🚀

→ EBIT has practically doubled

Net income:

43 → 94 million DKK 🚀

→ more than doubling

Earnings per share:

2.16 → 4.78 DKK 🚀

→ +121%

EBIT margin:

23.4% → 31.1%

→ Significant economies of scale

ROE:

14.2% → 21.7%

→ Capital is being deployed in an increasingly profitable manner

Balance Sheet:

–14.8 → –121 million DKK net debt

→ in fact growing net cash position 💰


⭐ My overall view

2025 = Transition year


2026 = Recovery/Acceleration


2027 = Strong growth


2028 = High Profitability

What’s interesting is the combination of growth + rising margins + strong EPS growth + net cash. The valuation aligns with this: The projected P/E ratio falls from 52.1× (2025) to 15.4× (2028), while earnings per share rise significantly at the same time.

In short: According to the forecasts, cBrain will not only grow in size but also become significantly more profitable.

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📊 Performance at a Glance

  • FC Yield: 2.58% → 6.17% ✅
  • P/E ratio: 52.1× → 15.4× ✅
  • P/B ratio: 6.92× → 3.16× ✅
  • PEG: 2026–2028 only 0.6–0.7× → interesting from a growth perspective.
  • Dividend: 1.00 → 2.495 DKK per share.
  • Dividend yield: 0.89% → 3.39%.

According to current MarketScreener estimates, cBrain is thus is now significantly more attractively valued as earnings growth accelerates, even though the company continues to grow operationally. Particularly striking is the decline in the P/E ratio from 52.1× to 15.4×.


Performance

1 week +39.60%

1 month +48.04%

6 months -3.35%

1 year -63.23%

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August 21, 2026, 10:49:03 PM •

Lang & Schwarz (EUR)

9.800 EUR

+0.900 EUR +10.11%


$CBRAIN (-4,93 %)

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4 Commentaires

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Looks great. The business side appeals to me, too. Let's see what MR. Prompt has to say, but I could see myself taking a position here. Thanks for the introduction!
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@Keineui I really like the numbers, too. Profitability is increasing. I also see some room for improvement when it comes to government agencies. I'm curious to hear what our Viking has to say.
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Hey, @Tenbagger2024! 🚀

So there you were, venturing onto my patio on a quiet Sunday to plop this so-called “gem” right onto my plate. Well, let’s take our time and dissect your little Danish treat.

First off, a small but significant beginner’s mistake: If you’re analyzing European stocks, pay attention to the currency—the stock isn’t trading at 72.9 **$**, but at just under 73.70 **DKK** (or 9.86 €). We’re trading here in Denmark, not on Wall Street!

But let’s get to the hard facts and your daydreams:

### 1. The Broken Knot vs. Brutal Reality

You’re asking if the knot has broken and whether things are “finally heading up.” A glance at the weekly chart says: Keep dreaming!

* Over the past two years, the stock has taken an epic nosedive from over 300 DKK to, at times, just under 50 DKK. That’s a price drop of over -63% year-to-date!
* One big green candlestick doesn’t make a summer. The price is stuck at ~73.70 DKK and is trading miles below the 50-week line (EMA 50 at 91.72) and the 200-week line (EMA 200 at 166.30).
* Technically speaking, this is a classic “dead cat bounce” in an intact bear market—not a breakout.

### 2. The Fundamentals & the P/E Ratio Fairy Tale

You’re celebrating the drop in the P/E ratio from 52x to 15x. Do you know why the valuation has fallen so sharply? Not just because of growth, but because the stock price has simply been pulverized!
Still, there’s one point in your favor here: The forecasts and operational strength (24% EBIT margin) are outstanding.

* 2025 was indeed a weak transitional year, with net income shrinking (from 64.8 million DKK to 43.1 million DKK).
* Analyst estimates align with your statements: EPS is expected to be €0.38 (2026), €0.50 (2027), and €0.61 (2028).

### 3. System Alerts vs. PR Releases

You’re relying entirely on the rose-colored glasses of the H1 earnings call. My system is much more ruthless:

* The quality check currently rates cBrain only as “Neutral.” Momentum is extremely weak.
* The quarterly results reported in February delivered a hefty negative surprise (EPS missed estimates by -35.3%).
* The dividend yield of 1.36% is nice, but no reason to pop the champagne.

### 🔥 Mr. Prompt’s Conclusion

Fundamentally, cBrain is indeed a highly profitable software company with a strong market position in e-government and a rock-solid balance sheet. Financial models even calculate a fair value of €13.88 (approx. 103 DKK), which corresponds to a whopping upside potential of +40.8%!

But as long as the weekly chart is hovering below the 91 mark, you’re potentially trying to catch a falling knife here. Add this one to your watchlist and wait for a real bottom!

How large would your very first position be if the price were to break below the 70 DKK mark again this week?

Best regards, Raketentoni
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@Raketentoni Basically, I do think this stock is interesting. But you're right—we'll have to wait and see if the short-term momentum holds up.
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