(HEGR) Hedera publ - Ratings and Ratios

Hedera Group AB (publ) is a Swedish company that provides staffing and recruitment services to the healthcare and social care sectors. The company offers a range of services, including temporary staffing for medical professionals such as doctors, nurses, and therapists, as well as permanent recruitment solutions. With its headquarters in Stockholm, Hedera Group has established itself as a key player in the Swedish healthcare staffing market.

Analyzing the companys business model, its clear that Hedera Group operates in a niche market with a specific focus on healthcare and social care. This specialization allows the company to develop a deep understanding of the industrys needs and tailor its services accordingly. The companys ability to provide a range of staffing solutions, from temporary to permanent placements, also positions it well to capitalize on the growing demand for flexible workforce arrangements in the healthcare sector.

From a technical analysis perspective, the stocks current price of 2.20 SEK is below its short-term and long-term moving averages, indicating a potential downtrend. The Average True Range (ATR) of 0.14 SEK, representing 6.48% of the current price, suggests that the stock is experiencing moderate volatility. Given the current price is at the 52-week low, a potential support level has been established. However, the lack of a clear bullish signal from the moving averages and the overall trend suggests caution.

Fundamentally, Hedera Groups market capitalization of 35.46M SEK and a forward P/E ratio of 4.93 indicate that the company is relatively small but has a reasonable valuation compared to its expected earnings. The absence of a trailing P/E ratio suggests that the company may not have reported positive earnings in the recent past, but the forward P/E ratio implies expected profitability. The Return on Equity (RoE) of 0.59 is relatively low, indicating that the company may not be generating strong returns on shareholder equity.

Forecasting the stocks performance, we can expect a potential rebound if the company can demonstrate improved earnings and the overall market sentiment towards the healthcare staffing sector becomes more positive. Using the technical data, a break above the 20-day SMA of 2.92 SEK could be a bullish signal, potentially driving the price towards the 50-day SMA of 3.30 SEK. However, if the current downtrend continues, the stock may face further downside risks. Based on the fundamental data, if the company can achieve the expected earnings growth implied by the forward P/E ratio, it could lead to a re-rating of the stock, driving the price higher. A potential target price could be around 4-5 SEK, representing a 80-130% increase from the current price, assuming the company meets its expected earnings growth and the market sentiment improves.