Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
HMS Networks AB is a Sweden-based multinational leader in Industrial Information and Communication Technology (Industrial ICT), specializing in products that enable industrial equipment to communicate with networks, software, and IoT systems. Founded in 1988 in Halmstad, where its headquarters remain, the company connects devices like robots, sensors, motors, and control systems to fieldbuses, Industrial Ethernet, and wireless networks, facilitating network communication, remote access, diagnostics, and data insights for enhanced productivity and sustainability. HMS Networks AB markets renowned brands including Anybus for multi-network connectivity, Ixxat for embedded control and automotive solutions, Ewon for remote equipment management, and Intesis for building automation. Organized into divisions such as Industrial Data Solutions, Industrial Networking Technology, and New Industries (encompassing Building Automation and Vehicle Communication), it employs 1,100 people across operations in over 20 countries, with distributors in more than 50. With 2024 revenue of 268 million EUR, HMS Networks AB plays a pivotal role in shaping IIoT, 5G, Industrial Ethernet, e-mobility, and AI-driven industrial transformations through high-quality manufacturing and innovation.
kr 522.50
+kr 26.50 (+5.34%)
Live · 07:28 PM · Twelve Data
22.08% operating margin is above average. ROIC at 8.53%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.
Revenue up 16.9% YoY with margins expanding 3.1pp.
At 54x earnings, the current multiple leaves limited room for execution misses or growth deceleration. ROIC dropped from 11.11% to 8.53%, capital efficiency is deteriorating.
54.5x earnings, 35.2x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
kr 3.66B
▲ +16.9% YoY
Net Income (TTM)
kr 483M
▲ +40.6% YoY
Op. Margin
22.93%
▲ +3.1pp YoY
ROIC
8.53%
▼ -2.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
kr 745M
▲ +58.0% YoY
Op. Cash Flow (TTM)
kr 800M
▲ +25.2% YoY
Net Debt
kr 2.17B
Cash & Equiv.
kr 89M
3Y CAGR: +12.6%
3Y CAGR: +28.8%
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At a P/E of 54.5 and a price-to-free-cash-flow of 35.2, HMS Networks AB (HMS.XSTO) trades above a two-stage DCF intrinsic value of about SEK 366.11 per share, so at SEK 522.50 the stock looks overvalued (29.9% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, HMS Networks AB scores 40/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.0%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about SEK 366.11 per share for HMS.XSTO, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around SEK 274.59. At today's SEK 522.50, that puts the stock about 29.9% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
HMS Networks AB scores 40 out of 100 on Intrinsiqq's quality score, passing 2 of 8 checks, which makes it a mixed business on these measures. Recent fundamentals include a 22.9% operating margin and a 8.5% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full check-by-check breakdown is on the quality scorecard.
Yes, HMS Networks AB pays a regular dividend of about SEK 0.09 per share per year (typically in quarterly installments), a yield of roughly 0.0% at the current price. That is a payout ratio of about 0.9% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For HMS.XSTO's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. HMS.XSTO currently trades above its estimated intrinsic value and scores 40/100 on quality (mixed). It also yields about 0.0%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.