HMS Networks HMS.ST
SwedenTechnology · Communication EquipmentNasdaq Estocolmo · SEK
599.20 SEK (+5.9%)
5 analysts
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HMS Networks AB is a Swedish provider of industrial communication and IoT solutions, manufacturing products such as gateways, routers, and modems to connect machinery and automation systems to data networks and the cloud.
Listed on Nasdaq Estocolmo · Symbol HMS.ST · STO: HMS · Currency SEK
Key points
from its scores- ✓Strong growth8.9
- ✓High-quality business7.3
- ✕Poor share-price trend3.5
- ✕Demanding valuation4.8
- !Modest dividend5.6
AI analysis
bottom line, main risk, context and newsExceptional growth and business quality justify the premium, but demanding valuation and weak momentum limit near-term upside potential.
HMS Networks shows very strong growth (revenue +17.6%, earnings +84.9%) with high margins (gross 63.28%, operating 23.91%) and a solid moat (ROIC 15.46%), although its valuation is demanding (P/E 51.41) and momentum is weak (21.21 over 12 months, score 3.45). The balance sheet is sound (ND/EBITDA 1.94) and growth justifies the multiple according to a PEG of 0.72.
The main risk is the demanding valuation (P/E 51.41, EV/EBITDA 27.64): any slowdown in the 84.9% earnings growth could trigger a significant multiple correction.
Context and risks
HMS Networks has no material exposure to current macro factors: its industrial communication equipment business does not depend on commodities, shipping routes, or interest rates significantly (Net Debt/EBITDA of 1.94, moderate). The rise in long-term rates and dollar strength do not alter its specific risk profile.
Is HMS Networks stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 50% above the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 51.4 | 31.3 | +64% |
| EV / EBITDA | 27.6 | 20.4 | +35% |
| Price / book | 7.7 | 6.3 | +22% |
| Price / sales | 7.5 | 5.3 | +41% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.8 out of 10 (median for Technology: 5.3).
Average analyst target: 599.20 SEK, +5.9% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 7.3 (sector 6.4), Growth 8.9 (sector 7.5).
Classic formulas with standard assumptions (7.1% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 51.4
- Forward P/E
- 48.0
- EV / EBITDA
- 27.6
- Price / book
- 7.7
- Price / sales
- 7.5
- PEG
- 0.72
- Market cap
- 28.4B SEK
- Enterprise value
- 30.6B SEK
Profitability
- ROE
- 15.8%
- ROA
- 8.7%
- ROIC (approx.)
- 15.5%
- Gross margin
- 63.3%
- Operating margin
- 23.9%
- Net margin
- 14.5%
- Free cash flow
- 740.0M SEK
- FCF yield
- 2.6%
- Cash conversion
- 67%
Solvency
- Total debt
- 2.2B SEK
- Net debt
- 2.1B SEK
- Cash
- 47.0M SEK
- EBITDA
- 1.1B SEK
- Net debt / EBITDA
- 1.94
- Debt / equity
- 59.19
- Current ratio
- 1.49
- Quick ratio
- 0.81
Growth
- Revenue growth
- +17.6%
- Earnings growth
- +84.9%
- EPS (TTM)
- 11.01 SEK
- EPS (forward)
- 11.79 SEK
Dividend
- Dividend yield
- 0.8%
- Payout
- 43.6%
Risk and market
- Beta
- 1.05
- Analyst consensus
- Strong buy (5)
- Target price
- 599.20 SEK
- 52-week range
- 375.20 – 593.50
Recent news
All HMS.ST news →Compare it with its sector
All 283 in Technology →Frequently asked questions about HMS Networks
Is HMS Networks stock cheap or expensive?
On P/E and EV / EBITDA, it trades 50% above the Technology median on average. Valuation score: 4.8 out of 10 (median for Technology: 5.3). Average analyst target: 599.20 SEK, +5.9% versus the price. This is not investment advice.
What score does HMS Networks get on MeridIAn Screener?
It scores 6.4 out of 10, rank 636 of 2,130 (better than 68% of the companies analysed). Its strongest category is Growth (8.9) and its weakest, Momentum (3.5). Analysis of 08/10/2026.
What is HMS Networks's P/E ratio?
Its P/E is 51.4: the share price equals 51.4 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 48.0.
How much is HMS Networks worth on the stock market?
Its market capitalisation is 28.4B SEK and its enterprise value, debt included, is 30.6B SEK.
How much debt does HMS Networks have?
Its net debt (debt minus cash) is 2.1B SEK. That is 1.94 times its EBITDA; the Technology median is 0.20.
Does HMS Networks pay a dividend?
Yes: its dividend yield is 0.85% and it pays out 44% of its earnings.
How has HMS Networks stock performed over the last year?
It has risen 29.0% over the last year, excluding dividends. Over the last 52 weeks it has traded between 375.20 and 593.50 SEK. Past performance does not guarantee future results.
What do analysts think of HMS Networks?
5 analysts cover it; their average recommendation is “Strong buy” and their average target is 599.20 SEK (+5.9% versus the price). It is an estimate, not market data.