olivLaw · European equity research
HMS Networks AB HMS.ST
Sweden · Nasdaq Stockholm · ISIN SE0009997018 · Vertical: Listed companies from Sweden
HMS Networks AB, headquartered in Halmstad, Sweden, develops connectivity and industrial network solutions that link automation equipment to each other and to digital systems. The company relies on direct sales and distribution, and its revenue target of 3.14 billion SEK by 2025 reflects its growth ambition while the industrial market remains cautious.
At the close of 05 Nov 2026, HMS Networks AB (HMS.ST) stock was 460.40 SEK (−2.83% on the day), with market capitalisation 22.5 bn SEK, P/E 72.6 on diluted EPS of 6.34 SEK over the last 12 months, dividend yield 0.96%, beta 1.11, 52-week range 385.40–589.50 SEK.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 28.1
- oversold (≤ 30)
- Bollinger (20, 2)
- 441.76 – 588.97
- in the lower half of the band · %B 0.13 · band width 28.6%
- SMA 50 / 200
- 526.89 / 486.90
- mixed trend
- MACD (12, 26, 9)
- -17.28 / -12.07
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −19.9% | −0.6% | −19.2 pp | — |
| 3 months | −6.1% | −4.2% | −1.9 pp | — |
| 6 months | −17.2% | +4.3% | −21.5 pp | — |
| Year to date | +9.9% | +7.5% | +2.4 pp | — |
| 1 year | −10.5% | +9.9% | −20.4 pp | −8.5% |
| 3 years | +21.6% | +49.8% | −28.2 pp | +12.3% |
| 5 years | −12.5% | +42.8% | −55.3 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 3-quarter history (min 31.3, median 40.8, max 68.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | 2.5 bn | 3.0 bn | 3.1 bn |
| Revenue YoY | unavailable | +20.7% | +1.1% |
| Net income | 507.8 m | 570.6 m | 309.7 m |
| Net income YoY | unavailable | +12.4% | −45.7% |
| Diluted EPS | 10.85 | 12.19 | 6.34 |
| Diluted EPS YoY | unavailable | +12.4% | −48.0% |
| net % | 20.3% | 18.9% | 10.1% |
| Free cash flow | unavailable | unavailable | unavailable |
Balance sheet & financial health
Fiscal year 2024 · 31 Dec 2024
- Cash
- 73.9 m SEK
- Financial debt
- unavailable SEK
- Net debt
- unavailable SEK
- Equity
- 3.5 bn SEK
- Total assets
- 7.5 bn SEK
- Debt / equity
- unavailable
- Current ratio
- 1.93x
- ROE
- 11.4%
- ROA
- 5.9%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (SEK)
Margins
Income statement · SEK
| Line | 2022 | 2023 | 2024 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 2.5 bn | 3.0 bn | 3.1 bn | esef· 08 May 2025verified |
| Cost of revenue | 929.6 m | 1.1 bn | 1.1 bn | esef· 08 May 2025verified |
| Gross profit | 1.6 bn | 2.0 bn | 1.9 bn | esef· 08 May 2025verified |
| Research & development | 260.6 m | 319.4 m | 286.7 m | esef· 08 May 2025verified |
| Operating income | 652.5 m | 753.3 m | 502.9 m | esef· 08 May 2025verified |
| Interest expense | 35.7 m | 47.4 m | 153.7 m | esef· 08 May 2025verified |
| Pre-tax income | 623.4 m | 717.3 m | 364.5 m | esef· 08 May 2025verified |
| Income tax | 115.7 m | 146.7 m | 54.9 m | esef· 08 May 2025verified |
| Net income | 507.8 m | 570.6 m | 309.7 m | esef· 08 May 2025verified |
| Diluted EPS | 10.85 | 12.19 | 6.34 | esef· 08 May 2025verified |
| Weighted average diluted shares | 46.8 m | 46.8 m | 48.9 m | esef· 08 May 2025verified |
| Dividend per share | — | 4.00 | 4.40 | esef· 08 May 2025verified |
Balance sheet · SEK
| Line | 2022 | 2023 | 2024 | Source (latest year) |
|---|---|---|---|---|
| Cash | 144.2 m | 124.0 m | 73.9 m | esef· 08 May 2025verified |
| Inventories | 362.0 m | 588.8 m | 858.7 m | esef· 08 May 2025verified |
| Current assets | 1.0 bn | 1.2 bn | 1.5 bn | esef· 08 May 2025verified |
| Property, plant & equipment, net | 232.2 m | 335.8 m | 456.1 m | esef· 08 May 2025verified |
| Goodwill | 1.1 bn | 1.1 bn | 4.4 bn | esef· 08 May 2025verified |
| Total assets | 2.7 bn | 3.0 bn | 7.5 bn | esef· 08 May 2025verified |
| Current liabilities | 686.3 m | 629.8 m | 788.1 m | esef· 08 May 2025verified |
| Equity | 1.6 bn | 1.9 bn | 3.5 bn | esef· 08 May 2025verified |
| Shares outstanding at year end | 46.6 m | 46.7 m | 48.8 m | esef· 08 May 2025derived |
Cash flow · SEK
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 33.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 22.5 bn SEK
Key indicators
Coverage and freshness
The data is older than the freshness threshold.
Score by group
33% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 10.1% | 83 (vs peers) | 19% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 3.3x | 27 (on a fixed band) | 19% |
| Current ratio · Balance sheet | 1.9x | 94 (on a fixed band) | 13% |
| P/E (TTM) · Valuation | 72.6x | 0 (vs peers) | 31% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 0.1% | 1 (on a fixed band) | 19% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet54/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality· partial83/100 · 1/3 factors with a value
- Returns· partial1/100 · 1/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
HMS Networks AB (HMS.ST). Latest full fiscal year: 2024; data up to 2024-12-31.
Figures computed from the financial statements: revenue 3.1 bn SEK in 2024; YoY growth 1.1%; net margin 10.1%; ROE 11.4%.
The estimated value range is 70.78–133.76 SEK per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 91.29 SEK, the price of 460.40 SEK leaves a potential of -80.2% (value / price − 1) and a margin of safety of -404.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 10.1%
- Current ratio: 1.9x
What contradicts it
- Interest coverage: 3.3x
- P/E (TTM): 72.6x
- Shareholder yield (distributions): 0.1%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, FCF yield, Payout ratio (FCF).
Versus the vertical median
Listed companies from Sweden · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ALFA.STAlfa Laval AB | 223.0 bn | 27.0 | 19.4% | 11.9% | +4.1% | +21% / +38% |
| BOL.STBoliden Ab | 143.0 bn | 15.2 | 13.3% | 10.1% | +4.8% | +12% / +81% |
| CAST.STCastellum Aktiebolag | 66.6 bn | 71.0 | 1.2% | 9.8% | −2.6% | +27% / +6% |
| AAK.STAak Ab (publ) | 47.5 bn | 13.9 | 17.2% | 7.5% | +2.2% | −31% / −14% |
| CAMX.STCamurus AB | 42.5 bn | 58.5 | 19.5% | 32.5% | +21.3% | +16% / +55% |
| BRAV.STBravida Holding AB | 30.1 bn | 24.5 | 13.7% | 4.4% | −4.9% | +84% / +123% |
| ASKER.STAsker Healthcare Group AB | 29.8 bn | 60.5 | 9.8% | 2.9% | +11.7% | −18% / unavailable |
| ALLEI.STAlleima AB | 22.7 bn | 33.8 | 4.1% | 3.6% | −5.4% | +11% / +19% |
| BURE.STBure Equity AB | 22.6 bn | — | -21.0% | — | unavailable | +20% / +19% |
| HMS.STHMS Networks AB | 22.5 bn | 72.6 | 11.4% | 10.1% | +1.1% | −2% / +4% |
| AQ.STAQ Group AB | 19.7 bn | 29.2 | 14.9% | 7.5% | +6.0% | +14% / +119% |
| ALTRA.STAltra Fastigheter AB | 18.4 bn | 33.9 | 3.0% | 15.1% | −2.2% | +9% / +19% |
| ATT.STAttendo AB (publ) | 16.8 bn | 20.7 | 15.1% | 4.3% | +0.1% | +34% / +223% |
| AFRY.STAfry Ab | 14.9 bn | 18.7 | 6.2% | 3.1% | −5.2% | −17% / +4% |
| ATRLJ-B.STAtrium Ljungberg AB | 14.0 bn | 17.1 | 2.9% | 23.9% | −2.0% | −33% / −44% |
| ALIG.STAlimak Group AB (publ) | 12.7 bn | 21.3 | 8.2% | 8.8% | −3.2% | −18% / +50% |
| ACAD.STAcadeMedia AB | 12.7 bn | 15.5 | 12.7% | 4.3% | +9.7% | +22% / +138% |
| APOTEA.STApotea AB (publ) | 10.7 bn | 46.8 | 31.3% | 3.2% | +10.1% | +15% / unavailable |
| BOOZT.STBoozt AB | 10.6 bn | 37.9 | 10.4% | 3.6% | +0.5% | +58% / +44% |
| BUFAB.STBufab AB (publ) | 5.0 bn | 9.2 | 15.1% | 6.9% | −7.4% | +36% / +110% |
| ACTI.STActive Biotech AB (publ) | 4.9 bn | — | -84.5% | — | unavailable | −32% / −77% |
| CEVI.STCellaVision AB | 4.7 bn | 30.8 | 18.0% | 20.2% | +4.9% | +20% / +12% |
| COOR.STCoor Service Management Holding AB | 4.7 bn | 18.2 | 13.0% | 2.2% | +16.7% | +1% / +25% |
| BHG.STBHG Group AB | 4.5 bn | 31.1 | 2.5% | 1.4% | +6.2% | −18% / +113% |
| CARA.STCarasent AB (publ) | 1.8 bn | 51.7 | 4.1% | 10.1% | +24.9% | −8% / +87% |
1- and 3-year price returns: for HMS.ST from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (SEK)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 263.36 Total return -42% · Per year -42% | 466.38 Total return 2% · Per year 2% | 703.56 Total return 54% · Per year 54% |
| 3 years | 238.62 Total return -46% · Per year -19% | 477.07 Total return 7% · Per year 2% | 792.60 Total return 76% · Per year 21% |
| 5 years | 216.21 Total return -50% · Per year -13% | 488.00 Total return 11% · Per year 2% | 892.91 Total return 101% · Per year 15% |
- Exit P/E± 119.27
- Net margin± 83.49
- Annual revenue growth± 70.81
- Annual dilution± 7.02
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
HMS Networks AB, headquartered in Halmstad, Sweden, develops connectivity and industrial network solutions that link automation equipment to each other and to digital systems. The company relies on direct sales and distribution, and its revenue target of 3.14 billion SEK by 2025 reflects its growth ambition while the industrial market remains cautious. 1
SWOT
Strengths
- Broad range of industrial connectivity products and a global presence, with offices and distributors in many markets.
- Diversified revenue model combining design-win direct sales with distribution through partners.
- Recovered delivery capability after the component shortage period has improved customer satisfaction.
Weaknesses
- Reliance on industrial investment makes revenue sensitive to economic cycles in the sector.
- Integrating recent acquisitions and moving to a new divisional organisation carries execution risk.
- Part of the supply chain depends on strategic suppliers, whose stability matters for deliveries.
Opportunities
- Digitalisation and automation of production could create new demand for connectivity and secure equipment access.
- New markets outside the traditional automation area could be reached through the New Industries division.
- Further acquisitions could widen the portfolio and customer access if completed successfully.
Threats
- A prolonged industrial downturn could reduce customer investment and delay automation projects.
- Competition from larger suppliers with greater resources could pressure prices and margins.
- Geopolitical tensions and currency swings could affect costs and international revenue.
Risks
- Acquisition integration riskmedium
Integrating the companies acquired in 2024 could prove harder than planned, affecting costs and efficiency.
- Slower industrial cyclehigh
If industrial investment stays cautious, direct sales could fall and the revenue target could be delayed.
- Component supply chainmedium
A new component shortage could repeat the delivery problems of recent years and reduce customer satisfaction.
- Margin pressuremedium
Competition and integration costs could compress margins, making the EBIT margin target harder to reach.
- Currency and geopolitical exposurelow
Operating in many countries can expose the company to currency fluctuations and geopolitical tensions affecting regional markets.
Investment thesis
What would need to be true (bull case)
- If industrial digitalisation continues and customers return to investing, the company could benefit from higher demand for connectivity, especially through its broad distribution and recent acquisitions.
- Better deliveries and rising customer satisfaction could strengthen long-term relationships and support organic growth.
- The divisional organisation could bring more transparency and clearer execution of strategy, which could speed up progress toward medium-term targets.
What would break the thesis
- If industrial investment remains low, direct sales revenue could stagnate and the growth target could prove hard to reach in the proposed timeframe.
- Acquisition integration and reorganisation could generate costs and distractions that press margins in the short term.
- Competition from suppliers with larger resources could limit the company's ability to hold prices and market share.
What to watch
- Revenue progress against the 3.14 billion SEK target2025
- Progress toward the 25 percent EBIT margin target2025
- Integration of Red Lion and PEAK-System into the new organisationnext 10-K
- Trend in customer NPS and delivery times2025
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
HMS Networks produces gateways, industrial routers, communication modules and remote access solutions for automation manufacturers, machine builders and system integrators. Products are sold across the value chain, and the company has offices in more than 20 countries and distributors in another 50. 1
Revenue comes from three routes: direct sales, often through design-wins where the HMS product is built into the customer's equipment, indirect sales through distributors and partners, and e-commerce. Management describes the structure as adapted to each customer, market and product range. 1
In 2024 the company acquired US-based Red Lion Controls and Germany's PEAK-System Technik GmbH, and from 1 January 2025 it moved to a divisional organisation intended to sharpen customer focus and accountability. For a company of this kind, acquisitions and reorganisation are central to the growth strategy. 1
Segments
Industrial Data Solutions
Division covering industrial data solutions, including remote access platforms and connecting equipment to the cloud. It is one of the three divisions the company created from 2025. 1
Industrial Network Technology
Division dedicated to industrial network technology, including gateways and modules that let equipment using different protocols communicate. It is the traditional core of the business. 1
New Industries
Division for new markets, where the company extends its product range into other industrial applications. Its share of total revenue is not detailed in the source reviewed. 1
Market context
The company operates in industrial automation, where customers are equipment makers, integrators and end users. The source shows a cautious market in 2024, with a slower pace of investment, but signs of recovery in the Americas toward the end of the year. 1
In Europe, the Middle East and Africa, activity was visibly affected by the economic situation in the region, while in the Americas the industrial market grew in 2024, partly supported by investment in data centres. Developments in these markets matter for reaching the medium-term targets. 1
Trends
- Industrial digitalisation and automationtailwind
Many industrial companies see digitalisation through automation and robotisation as central to resilience and to reducing environmental impact. If this trend strengthens, demand for industrial connectivity could grow. 1
- Cautious industrial investmentheadwind
Management describes an industrial market expected to invest at a slower pace. If customers postpone projects, direct sales revenue could be hit in the short term. 1
- Delivery recovery after component shortagestailwind
After several years of component shortages and delivery problems, the company says it has regained its delivery capability, which has lifted customer satisfaction. This recovery supports relationships with distributors and end customers. 1
- Acquisition integration and margin pressuremixed
Integrating the companies acquired in 2024 and reorganising into divisions is complex. If integration does not go to plan, margins could come under pressure and the EBIT margin target of 25 percent could be delayed. 1
Competitive position
The company competes with other providers of industrial network and automation communication equipment, both general-purpose manufacturers and protocol specialists. Its stated advantages are a broad product range and global presence, but price and delivery-time competition remains intense. 1
Differentiation depends on the ability to deliver on time and support customers in design-win projects, where a product is chosen well before production. The source states that better deliveries have raised customer satisfaction. 1
- General-purpose industrial network manufacturers
Large automation suppliers that include their own network solutions in their portfolios, competing directly with HMS gateways and modules. The source reviewed does not name specific firms.
- Industrial protocol specialists
Smaller companies focused on a particular protocol family or application niche. They compete mainly in equipment-level integration projects.
- Remote access providers for industry
Companies offering secure connection to industrial equipment, a segment adjacent to the industrial data solutions division.
- Communication component manufacturers
Suppliers of modules and chips that can act as both partners and competitors, depending on how far they integrate into the final product.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202408 May 2025
- Annual report 202323 Apr 2024
Sources
- [1] Annual report, fiscal year ended 2024-12-31 (ESEF) · SEC / HMS Networks AB · 31 Dec 2024
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.