$HMS (+0,22%)

Perhaps I should have listened to my gut feeling here. But buying before the numbers is always a risk. @TomTurboInvest

The industrial communications company HMS Networks achieved sales in line with expectations in the third quarter. However, the adjusted profit was significantly higher than forecast.

Sales increased by 12.9 percent to SEK 894 million (792). The result was in line with the Bloomberg analyst consensus of SEK 883 million. Organic sales growth amounted to 8 percent (-30).

Operating profit amounted to SEK 213 million (163). The operating margin amounted to 23.8 percent (20.6).

Adjusted operating profit amounted to SEK 244 million (194), compared to the expected SEK 193 million, with an adjusted operating margin of 27.3 percent (24.5).

Earnings per share amounted to SEK 3.26 (1.88). Adjusted earnings per share amounted to SEK 3.88 (2.51).

Order intake amounted to SEK 855 million (677). This represents an organic increase of 22 percent.

"Compared to the previous year, we are seeing positive signals in all key geographical markets. North America is driving sales growth, while order growth in all major markets is increasing by more than 20%," writes CEO Staffan Dahlström in the report.

Under "Outlook", Dahlström comments as follows:

"Uncertainty regarding tariffs, geopolitics and regulations continues to cause caution in some geographic markets. As before, we remain cautiously optimistic about the development potential in the current year, albeit with continued uncertainty regarding macroeconomic developments. In the long term, we believe that incentives and trends towards regionalized industrial production (North America, Europe, China and Southeast Asia) will create greater demand for automation, digitalization and communication for industrial applications - which is positive for HMS."

He continues:

"We are confident that we can continue to win new customers and grow our business with existing customers through continued investment in product development, innovation and sales resources. Organic and acquisitive profitable growth will be our priority in the coming years."

Increased tariffs have become part of everyday life, and the company is adapting by strengthening flexibility in logistics and increasing investment in the York, Pennsylvania facility. Certain products and production steps can be relocated to the US to reduce the impact of tariffs.

https://de.marketscreener.com/boerse-nachrichten/hms-networks-uebertrifft-die-gewinnerwartungen-deutlich-ce7d5ad3d88bf223

HMS Networks makes it possible to equip machines with AI capabilities by enabling the networking of machines, systems and data, which is a prerequisite for AI applications. The company offers hardware and software for industrial communication that makes it possible to collect and analyze data from machines and make it usable for AI applications. Examples of this include the visualization of machine data for monitoring and the integration of AI into the network monitoring itself.

https://www.hms-networks.com/de/solutions/solutions-for/-machine-data-monitoring#:~:text=Greifen%20Sie%20vor%20Ort%20oder,schnell%20und%20mit%20einfacher%20Datenintegration.

Tomorrow, my featured company, HMS $HMS (+0,22%) figures.

Maybe they will determine the direction. https://getqu.in/fod0eg/

$HMS (+0,22%)

Part 1 : https://getqu.in/iEdT1I/

Hello my dears, as promised

Part 2 : Company presentation

HMS takes care of communication in industrial plants

HMS stands for Hardware Meets Software™. By enabling automation devices (hardware) to communicate and exchange information with software and systems, their customers increase their productivity and sustainability.

HMS Networks was founded in 1988 in Halmstad, Sweden, where its headquarters are still located today. HMS products are now used in millions of devices around the world for networking in industrial plants.

Red Lion Controls has been part of the HMS Group since April 2024.

Customers - manufacturers and users

The field of activity is industrial information and communication technology (Industrial ICT). HMS supports both manufacturers of machines and automation devices as well as users and plant operators with various solutions in this area.

• Manufacturers produce e.g. drives, robots, air conditioning systems, vehicles, emergency power generators or other machines or devices. Manufacturers rely on HMS solutions to network their products. (and yet another exciting company at Robotic @EpsEra )
• Users are e.g . Plant operators, system integrators or building technicians who use industrial devices. Users rely on HMS solutions to enable communication and information exchange in industrial applications.

Our production philosophy

In our state-of-the-art, customized facilities in Halmstad, Sweden and York, Pennsylvania, we develop and manufacture products that meet the highest demands of our customers.

Surface assembly of components and high volume box builds are performed by subcontractors (EMS) in Eastern Europe and Asia. This flexibility enables us to reliably and efficiently handle both individual orders and large orders with thousands of units.

The HMS production facility in Halmstad is located right next to the development department of the Industrial Network Technology Division.

Prototypes, small series and certain custom-made products are produced here, as well as final assembly and quality control.

At the York plant, HMS manufactures products for the American market, in particular the Red Lion and N-Tron product brands.

The plants in Halmstad and York work closely together and use the same production system.

2020-2024

Creating the "world's largest industrial ICT company"

In 2020, HMS is introducing a new agenda that focuses on three main themes: Planet, People and Growth. With the ambitious goal of becoming "The World's greatest Industrial ICT Company", HMS presented a new playing field and an ambitious agenda for 2025.

During the pandemic years, HMS consolidates but continues to grow as the demand for automation and efficiency increases.

In 2024, HMS announces its largest acquisition to date, Red Lion Controls, based in York, Pennsylvania. Expansion of the organization by another 400 people

2025-

Divisionalization for future growth

In 2025, HMS introduces a new organization with three separate business units: Industrial Data Solutions, Industrial Network Technologies and New Industries, serving different customers.

HMS Networks AB: HMS Networks announces strategic goals for 2030

https://www.finanznachrichten.de/nachrichten-2025-09/66387302-hms-networks-ab-hms-networks-announces-strategic-targets-for-2030-399.htm

HMS Technologies The devices of the future will be networked

... And that's exactly what HMS does: connect industrial devices. The Industrial Internet of Things (IIoT) means that industrial hardware such as drives, robots, aggregates, etc. are connected to control systems and the Internet.

This trend towards increasing networking is a perfect fit for HMS, because Hardware Meets Software™ is exactly what HMS has been doing for decades.

$HMS (+0,22%)

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)