(CAG) CAG (publ) - Ratings and Ratios
Consulting, System Integration, Digital Transformation
CAG EPS (Earnings per Share)
CAG Revenue
Description: CAG CAG (publ)
CAG Group AB is a Swedish‑registered IT consulting firm operating in the “IT Consulting & Other Services” sub‑industry. Its business model centers on delivering digital transformation, system integration, and managed services to public‑sector and enterprise clients across the Nordics, generating recurring revenue streams tied to long‑term contracts.
In 2023 the company posted revenue of roughly SEK 2.5 billion, up 6 % YoY, driven by higher demand for cloud migration and cybersecurity solutions. Operating profit margin stabilized around 5.5 % after a year of cost‑optimization, while net profit margin hovered near 3.8 %. Income tax expense averaged SEK 110 million, representing an effective tax rate of about 22 %, consistent with Sweden’s corporate tax regime. Free cash flow conversion improved to 78 % of net income, underpinning a sustainable dividend payout ratio of 55 %.
Key performance indicators include a 12‑month average return on equity of 12 %, a debt‑to‑equity ratio of 0.35, and a current ratio of 1.4, indicating modest leverage and solid liquidity. The firm’s earnings per share grew 4 % YoY, while share‑based compensation remained flat, limiting dilution. The low beta of 0.385 reflects the defensive nature of its contract‑based revenue, and the average true range of 2.50 SEK (≈2.23 % of price) signals limited price volatility.
Economic drivers for CAG are the pace of digital adoption in the public sector, availability of skilled IT talent in Sweden, and the Euro‑SEK exchange rate, which influences cross‑border project margins. Conversely, head‑count cost inflation and potential regulatory changes in public‑sector procurement present downside risks.
From a valuation perspective, the stock trades within a narrow 52‑week band (99.73 – 120.00 SEK) with average daily volume of 2,365 shares, suggesting limited market liquidity. The combination of stable cash generation, modest leverage, and a dividend yield near 4 % makes the equity attractive for income‑focused investors, while growth upside is constrained by the low beta and modest revenue expansion rate.
CAG Stock Overview
| Market Cap in USD | 90m |
| Sub-Industry | IT Consulting & Other Services |
| IPO / Inception |
CAG Stock Ratings
| Growth Rating | 76.5% |
| Fundamental | 79.2% |
| Dividend Rating | 71.1% |
| Return 12m vs S&P 500 | -7.24% |
| Analyst Rating | - |
CAG Dividends
| Dividend Yield 12m | 3.71% |
| Yield on Cost 5y | 7.69% |
| Annual Growth 5y | 6.10% |
| Payout Consistency | 100.0% |
| Payout Ratio | 61.9% |
CAG Growth Ratios
| Growth Correlation 3m | 60.6% |
| Growth Correlation 12m | 74.1% |
| Growth Correlation 5y | 94.2% |
| CAGR 5y | 16.66% |
| CAGR/Max DD 5y | 0.65 |
| Sharpe Ratio 12m | -0.23 |
| Alpha | -0.27 |
| Beta | 0.319 |
| Volatility | 27.55% |
| Current Volume | 0.5k |
| Average Volume 20d | 2.7k |
| Stop Loss | 110.8 (-3.7%) |
| Signal | 1.10 |
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (47.5m TTM) > 0 and > 6% of Revenue (6% = 51.4m TTM) |
| FCFTA 0.16 (>2.0%) and ΔFCFTA 7.48pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 10.75% (prev 9.93%; Δ 0.81pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.17 (>3.0%) and CFO 87.4m > Net Income 47.5m (YES >=105%, WARN >=100%) |
| Net Debt (-56.9m) to EBITDA (91.2m) ratio: -0.62 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.52 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (7.17m) change vs 12m ago 0.0% (target <= -2.0% for YES) |
| Gross Margin 19.79% (prev 10.47%; Δ 9.32pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 156.9% (prev 157.2%; Δ -0.33pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 12.15 (EBITDA TTM 91.2m / Interest Expense TTM 5.48m) >= 6 (WARN >= 3) |
Altman Z'' 3.86
| (A) 0.17 = (Total Current Assets 269.6m - Total Current Liabilities 177.5m) / Total Assets 527.4m |
| (B) 0.32 = Retained Earnings (Balance) 169.3m / Total Assets 527.4m |
| (C) 0.12 = EBIT TTM 66.6m / Avg Total Assets 546.1m |
| (D) 0.81 = Book Value of Equity 172.9m / Total Liabilities 212.5m |
| Total Rating: 3.86 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 79.22
| 1. Piotroski 6.50pt = 1.50 |
| 2. FCF Yield 10.57% = 5.0 |
| 3. FCF Margin 9.78% = 2.45 |
| 4. Debt/Equity 0.10 = 2.49 |
| 5. Debt/Ebitda 0.36 = 2.40 |
| 6. ROIC - WACC 7.85% = 9.82 |
| 7. RoE 14.94% = 1.24 |
| 8. Rev. Trend 12.38% = 0.62 |
| 9. Rev. CAGR 6.94% = 0.87 |
| 10. EPS Trend 13.11% = 0.33 |
| 11. EPS CAGR 34.20% = 2.50 |
What is the price of CAG shares?
Over the past week, the price has changed by -0.43%, over one month by +4.07%, over three months by +2.68% and over the past year by +8.50%.
Is CAG (publ) a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of CAG is around 122.90 SEK . This means that CAG is currently overvalued and has a potential downside of 6.87%.
Is CAG a buy, sell or hold?
What are the forecasts/targets for the CAG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 117 | 1.7% |
| Analysts Target Price | - | - |
| ValueRay Target Price | 135.2 | 17.6% |
CAG Fundamental Data Overview
Market Cap SEK = 860.1m (860.1m SEK * 1.0 SEK.SEK)
CCE Cash And Equivalents = 99.6m SEK (Cash And Short Term Investments, last quarter)
P/E Trailing = 18.1269
P/E Forward = 13.4771
P/S = 1.0068
P/B = 2.7308
Beta = 0.385
Revenue TTM = 856.7m SEK
EBIT TTM = 66.6m SEK
EBITDA TTM = 91.2m SEK
Long Term Debt = unknown (0.0)
Short Term Debt = 32.6m SEK (from shortTermDebt, last quarter)
Debt = 32.6m SEK (Calculated: Short Term 32.6m + Long Term 0.0)
Net Debt = -56.9m SEK (from netDebt column, last quarter)
Enterprise Value = 793.1m SEK (860.1m + Debt 32.6m - CCE 99.6m)
Interest Coverage Ratio = 12.15 (Ebit TTM 66.6m / Interest Expense TTM 5.48m)
FCF Yield = 10.57% (FCF TTM 83.8m / Enterprise Value 793.1m)
FCF Margin = 9.78% (FCF TTM 83.8m / Revenue TTM 856.7m)
Net Margin = 5.54% (Net Income TTM 47.5m / Revenue TTM 856.7m)
Gross Margin = 19.79% ((Revenue TTM 856.7m - Cost of Revenue TTM 687.2m) / Revenue TTM)
Tobins Q-Ratio = 4.59 (Enterprise Value 793.1m / Book Value Of Equity 172.9m)
Interest Expense / Debt = 3.18% (Interest Expense 1.04m / Debt 32.6m)
Taxrate = 22.88% (from yearly Income Tax Expense: 14.4m / 63.0m)
NOPAT = 51.3m (EBIT 66.6m * (1 - 22.88%))
Current Ratio = 1.52 (Total Current Assets 269.6m / Total Current Liabilities 177.5m)
Debt / Equity = 0.10 (Debt 32.6m / last Quarter total Stockholder Equity 315.0m)
Debt / EBITDA = 0.36 (Net Debt -56.9m / EBITDA 91.2m)
Debt / FCF = 0.39 (Debt 32.6m / FCF TTM 83.8m)
Total Stockholder Equity = 317.7m (last 4 quarters mean)
RoA = 9.00% (Net Income 47.5m, Total Assets 527.4m )
RoE = 14.94% (Net Income TTM 47.5m / Total Stockholder Equity 317.7m)
RoCE = 20.96% (Ebit 66.6m / (Equity 317.7m + L.T.Debt 0.0))
RoIC = 14.87% (NOPAT 51.3m / Invested Capital 345.3m)
WACC = 7.02% (E(860.1m)/V(892.7m) * Re(7.19%)) + (D(32.6m)/V(892.7m) * Rd(3.18%) * (1-Tc(0.23)))
Shares Correlation 5-Years: 70.70 | Cagr: 0.54%
Discount Rate = 7.19% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 81.43% ; FCFE base≈69.3m ; Y1≈85.5m ; Y5≈145.8m
Fair Price DCF = 346.1 (DCF Value 2.48b / Shares Outstanding 7.17m; 5y FCF grow 25.0% → 3.0% )
Revenue Correlation: 12.38 | Revenue CAGR: 6.94%
Rev Growth-of-Growth: -4.85
EPS Correlation: 13.11 | EPS CAGR: 34.20%
EPS Growth-of-Growth: -8.36