Sinch SINCH.ST
SwedenCommunication Services · Telecom ServicesNasdaq Estocolmo · SEK
45.94 SEK (+6.2%)
9 analysts
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Sinch AB is a Swedish software company offering cloud communications platforms (messaging, voice, and video) for businesses to engage with their customers, with a business model based on subscriptions and usage-based fees.
Listed on Nasdaq Estocolmo · Symbol SINCH.ST · STO: SINCH · Currency SEK
Key points
from its scores- ✓Good share-price trend8.9
- ✓Strong growth7.2
- ✕Unfavourable risk and backdrop1.2
- ✕Little or no dividend1.4
- ✕Little competitive advantage3.0
AI analysis
bottom line, main risk, context and newsMomentum is strong, but the demanding valuation and low return on capital offer no margin of safety.
Sinch shows a mixed profile: reasonable financial health (ND/EBITDA of 2.70) and strong momentum (46.96% over 12 months), but very low returns (ROE 1.89%, operating margin 2.46%) that do not justify a P/E of 72.08. The 440.60% earnings growth is striking, but it starts from a very low base.
The combination of a P/E of 72.08 with an operating margin of only 2.46% leaves Sinch highly exposed to any slowdown in client spending on digital communications, which could further compress already very thin margins.
Context and risks
No recent relevant news and no material exposure to current macro factors. The cloud communications software business does not depend on commodities or shipping routes, and its debt level (ND/EBITDA of 2.70) is not high enough for the rise in rates to be a dominant factor in its valuation.
Is Sinch stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 182% above the Communication Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 72.1 | 17.1 | +320% |
| EV / EBITDA | 13.8 | 9.6 | +44% |
| Price / book | 1.3 | 2.3 | −43% |
| Price / sales | 1.1 | 1.9 | −41% |
Sector: median of the 102 Communication Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.5 out of 10 (median for Communication Services: 6.3).
Average analyst target: 45.94 SEK, +6.2% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 3.0 (sector 6.1), Growth 7.2 (sector 5.4).
Classic formulas with standard assumptions (10.0% 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 Communication Services medianValuation
- P/E
- 72.1
- Forward P/E
- 57.7
- EV / EBITDA
- 13.8
- Price / book
- 1.3
- Price / sales
- 1.1
- PEG
- 1.65
- Market cap
- 30.4B SEK
- Enterprise value
- 37.8B SEK
Profitability
- ROE
- 1.9%
- ROA
- 2.1%
- ROIC (approx.)
- 2.1%
- Gross margin
- 18.4%
- Operating margin
- 2.5%
- Net margin
- 1.7%
- Free cash flow
- 1.6B SEK
- FCF yield
- 5.4%
- Cash conversion
- 60%
Solvency
- Total debt
- 8.2B SEK
- Net debt
- 7.4B SEK
- Cash
- 750.0M SEK
- EBITDA
- 2.7B SEK
- Net debt / EBITDA
- 2.70
- Debt / equity
- 35.49
- Current ratio
- 0.78
- Quick ratio
- 0.71
Growth
- Revenue growth
- +3.8%
- Earnings growth
- +440.6%
- EPS (TTM)
- 0.60 SEK
- EPS (forward)
- 0.75 SEK
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 2.46
- Analyst consensus
- Hold (9)
- Target price
- 45.94 SEK
- 52-week range
- 18.86 – 51.76
Recent news
All SINCH.ST news →Compare it with its sector
All 102 in Communication Services →Frequently asked questions about Sinch
Is Sinch stock cheap or expensive?
On P/E and EV / EBITDA, it trades 182% above the Communication Services median on average. Valuation score: 4.5 out of 10 (median for Communication Services: 6.3). Average analyst target: 45.94 SEK, +6.2% versus the price. This is not investment advice.
What score does Sinch get on MeridIAn Screener?
It scores 4.1 out of 10, rank 1,960 of 2,130 (better than 8% of the companies analysed). Its strongest category is Momentum (8.9) and its weakest, Risk & Context (1.2). Analysis of 08/10/2026.
What is Sinch's P/E ratio?
Its P/E is 72.1: the share price equals 72.1 times earnings per share over the last 12 months. The Communication Services median is 17.1. Based on the earnings analysts expect, the forward P/E is 57.7.
How much is Sinch worth on the stock market?
Its market capitalisation is 30.4B SEK and its enterprise value, debt included, is 37.8B SEK.
How much debt does Sinch have?
Its net debt (debt minus cash) is 7.4B SEK. That is 2.70 times its EBITDA; the Communication Services median is 2.19.
Does Sinch pay a dividend?
It pays no dividend, or almost none.
How has Sinch stock performed over the last year?
It has risen 37.7% over the last year, excluding dividends. Over the last 52 weeks it has traded between 18.86 and 51.76 SEK. Past performance does not guarantee future results.
What do analysts think of Sinch?
9 analysts cover it; their average recommendation is “Hold” and their average target is 45.94 SEK (+6.2% versus the price). It is an estimate, not market data.