1Sem.·

There are still undervalued growth stocks, " Successful together "

Hello my dears,

In these volatile times, I went looking for you outside the USA.

I found what I was looking for in Sweden. In my opinion, there is a robust industrial / tech stock here that should benefit from AI. @EpsEra

The exact company presentation can be found in another post. https://getqu.in/fod0eg/

Due to the growth in profit and EBIT margin, I see potential for the share to move out of the sideways trend soon.

Added to this is the undervaluation according to the share finder.

Interested investors should take a look at the October 21 in the calendar. This is when the quarterly figures are published. Which could determine the direction.

Perhaps our dear man @TomTurboInvest take another look at the chart.

Ladies and gentlemen, I have also added the history to the key figures.

To show you why the share went into this long sideways consolidation. In 2024, there were several acquisitions which, among other things, caused the slump in profits. The fact that the share has only moved sideways and not into a downward trend could show us a certain robustness.

Margin pressure and impact of acquisitions in 2024

Gross margin remained relatively stable, although down slightly, partly offset by product mix and cost control. HMS Networks+2HMS Networks+2
The acquisitions (in particular Red Lion and PEAK-System) contribute to a more complex business portfolio and bring integration efforts and amortization costs that weigh on the operating result. HMS Networks+2EarningsCall+2
In the annual financial statements for 2024, HMS reports an "Adjusted EBIT" of SEK 665 million compared to SEK 792 million in the previous year, which represents a significant decline. HMS Networks+1
Operating profit (EBIT) fell even more sharply: SEK 503 million compared to SEK 753 million in the previous year

In the traderfox Monkey Indicator, the share also demonstrates enduring quality (perhaps also interesting for the @Simpson holding company)

HMS Industrial Networks (A2DYY7): Aktie Analyse: Kaufempfehlung & Alternativen

Year SALES (SEK billion)

2023 3,02

2024 3,06

2025 3,61

2026 4,17

2027 4,62

Year SALES GROWTH (%)

2023 20,67

2024 1,16

2025 17,95

2026 15,55

2027 10,82

Year GROSS TOMARGE (%)

2023 65,05

2024 62,60

2025 53,08

2026 45,93

2027 41,45

Year EBIT margin (%)

2023 25,84

2024 18,94

2025 20,60

2026 23,52

2027 24,68

Year INCOME (SEK m)

2023 570,00

2024 309,00

2025 485,00

2026 691,00

2027 833,00

Year PROFIT GROWTH (%)

2023 12,43

2024 -45,79

2025 56,96

2026 42,47

2027 20,55

Year P/E ratio

2023 40,66

2024 68,32

2025 40,78

2026 32,11

2027 26,61

2028 24,35

Year DIVIDEND YIELD (%)

2025 0,71

2026 1,11

2026 1,35

Performance:

15 years
+1.856,69 %

10 years
+753,51 %

5 years
+114,43 %

1 year
+16,96 %

Current year
+2,07 %

The fair value of the HMS Networks share is calculated over the 10-year valuation period selected above. The average KCV in this case is 30.62.

Multiplied by the operating cash flow per share of SEK 15.37 over the last 4 quarters, the fair value of the HMS Networks share is fair value of SEK 470.60. The current share price of SEK 441.44 is 6.2% below this fair value, making the share slightly undervalued. slightly undervalued appears to be slightly undervalued. (Source Share Finder)

16 Commentaires

TomTurboInvest@TomTurboInvest

1Sem.

@Tenbagger2024 since I'm online at the moment and looking at what's happening on the US market, here's my chart - but I haven't looked at $HMS fundamentally.

As you wrote, HMS has been going sideways since the end of Spet21. I have also anchored my VWAP there. I wonder what kind of news or fundamental has to come for the price to break out of this channel?🤔

There is currently a good +9% potential to the upper edge of this channel, but -17% to the downside. At just over 2%, the ADR is rather too small for a swing trader. As a long-term investor, I would at least wait for the return to the VWAP (blue line), where there is also a HighVolumeNode. Patient investors should wait until the price reaches the lower band again (yellow line) - I have marked both marks with an arrow.

https://www.tradingview.com/x/ng6zQCau/

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Tenbagger2024@Tenbagger2024

1Sem.

@TomTurboInvest
Mega, and thank you, fundamentally it doesn't look bad. I think the quarterly figures could determine the future direction.

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Tenbagger2024@Tenbagger2024

1Sem.

@TomTurboInvest
Is it better to wait until the price breaks out of the channel for a long-term investment?
Maybe it's not a bad idea to go in with a first tranche at the lower end

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TomTurboInvest@TomTurboInvest

1Sem.

@Tenbagger2024 Of course, everyone has a different approach, but I would wait for one of the lower HighVolumeNodes (yellow lines), the price does not seem to get above the upper one (white circle) at the moment.

https://www.tradingview.com/x/gbw5bnK9/

However, if you are expecting an ignition at earnings, then you can get in - one variant would be a stop buy order above the upper HighVolumeNode.

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Tenbagger2024@Tenbagger2024

1Sem.

@TomTurboInvest
Thank you, makes sense

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Tenbagger2024@Tenbagger2024

@TomTurboInvest
Maybe the breakout will come tomorrow. Do you think that would be a good opportunity to get in?

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TomTurboInvest@TomTurboInvest

@Tenbagger2024 What if you knew? Before the numbers, it's always a bit Casino🤷‍♂️

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Tenbagger2024@Tenbagger2024

@TomTurboInvest
No . Mine after the figures, if they are good. Then perhaps there should be a breakout

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Tenbagger2024@Tenbagger2024

@EpsEra What do you think of the company?
Tomorrow there will be figures

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Elsa E.@EpsEra

@Tenbagger2024
I took a closer look at the company. It is definitely a quality stock in the telecommunications sector with a solid foundation and future potential, especially with regard to 5.5G and 6G. The share has been moving sideways for some time now, which could perhaps change with the upcoming quarterly figures. If the results are convincing, this could well be an interesting time to enter the market. At the moment, I myself am more heavily invested in other sectors, but the company is definitely worth watching.

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Tenbagger2024@Tenbagger2024

@EpsEra
The figures will be published tomorrow. I think the company will also be important in making machines capable of AI.
Where are you currently involved?

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Elsa E.@EpsEra

@Tenbagger2024
What you are talking about is definitely a very important point. The connection between communication technology and the integration of AI into industrial processes is crucial for the future. You asked what I'm currently focusing on. Over the last three weeks, I've been working intensively on the topic of energy and raw materials, especially fuel cells and battery technology. I've come across a lot of exciting approaches and companies and have taken a closer look at the entire value chain. I am currently in the process of summarizing all of this in a structured way and classifying the appropriate companies. If everything works out, I'll be presenting it in detail soon.

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Tenbagger2024@Tenbagger2024

@EpsEra
Mega, I'm already looking forward to it.
I also introduced $AMRC.
What do you think?
I'm hardly invested in commodities either. That's why it's a good fit. I think gold and silver have already done well. As for rare earths, I'd rather wait for the meeting in South Korea.
I find uranium very exciting with potential, maybe you have an exciting company there?

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Tenbagger2024@Tenbagger2024

@EpsEra
$ALNT Do you know the company?

https://www.alliedmotion.com/surgical-robotic-arm-systems/

https://allient.com/markets/aerospace-defense/

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Elsa E.@EpsEra

@Tenbagger2024
I actually don't know the company yet, but I looked at the pages you shared. Very interesting company, especially in the field of medical robotics, but also exciting in connection with defense technology. The chart looks strong, after breaking through the all-time high it seems to remain on an upward trend. It's definitely an exciting company to keep an eye on. How did you find out about the company?

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Elsa E.@EpsEra

@Tenbagger2024
Yes, I hadn't looked into Ameresco that much until you introduced it. Ameresco operates at a higher level, clearly in the energy sector, but less directly in battery or fuel cell value creation. They are more strongly positioned in the area of infrastructure and storage solutions. Definitely an exciting company. On the subject of uranium, I find $CCO from Canada very interesting, and I am also invested there. I am also invested in $KAP from Kazakhstan, the world's largest uranium producer. Geopolitically it is certainly not easy, but the share is clearly undervalued and with the increasing demand for uranium there could still be a lot of potential here.

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