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1. Company Snapshot

1.a. Company Description

Netcompany Group A/S, an IT services company, delivers business critical IT solutions to public and private sector customers in Denmark, Norway, the United Kingdom, the Netherlands, Belgium, Luxembourg, Greece, Spain, and internationally.It is involved in the development, maintenance, and operation of business-critical IT solutions for various areas, such as benefits and payments, Citizen services, grant management, debt collection and refunds, registration, case management, regulations, filing and reporting, digital infrastructure, analytics and evaluation, and internal support; and customer portals, E-commerce, apps, CRM, marketing automation, PIM, ERP, billing, configure price quote, contract lifecycle management, document and case management, field service, core systems, application development, system integration and API management, data warehouses and data lakes, BI and analytics, data governance, artificial intelligence, internet-of-things (IOT), end user computing, end user computing, cloud migration, and cyber security .The company serves customers in insurance, pension and banking, energy and utilities, transport and logistics, telecommunication and media, retail and wholesale, manufacturing and production, service companies, life science, unemployment insurance fund and union, finance, health, taxation, social and interior, justice, education and science, business, labour market, housing and development, immigration, and climate.


Netcompany Group A/S was founded in 2000 and is headquartered in Copenhagen, Denmark.

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1.b. Last Insights on NETC

Netcompany Group A/S's recent performance was driven by robust revenue growth, primarily attributed to the expansion of its private sector business and the strategic integration of banking services. The company's organic revenue increased by 7.7% to DKK 7,044.1m in 2025, in line with guidance, while reported revenue grew by 20.7%, with 13 percentage points contributed by non-organic factors related to Netcompany Banking Services. Additionally, the company's organic adjusted EBITDA rose by 8.3% to DKK 1,188.

1.c. Company Highlights

2. Netcompany's Q3 2025 Earnings: A Mixed Bag

Netcompany's Q3 2025 financial performance was marked by revenue growth, with reported revenue increasing by 34.3% to DKK 2.08 billion, driven by the inclusion of Netcompany Banking Services. Organic revenue growth was 8.2% in constant currencies. The adjusted EBITDA margin for the group was 17.3%, with organic adjusted EBITDA margin at 19.1%. However, the company's EPS came out at -1.415, significantly lower than the estimated 4. The acquisition of SDC, now Netcompany Banking Services, contributed to the revenue growth, and the company expects to realize cost synergies of DKK 300-350 million annually by 2028.

Publication Date: Dec -02

📋 Highlights
  • Revenue Growth:: Q3 2025 organic revenue grew 8.5% (8.2% currency-adjusted), with public sector up 6.7% and private sector up 11.7%, driven by platform expansion and acquisitions.
  • EBITDA Performance:: Organic adjusted EBITDA rose 8.7% to DKK 348.1 million, with a margin of 19.1%, while reported EBITDA increased 17.3% to DKK 359.3 million (17.3% margin).
  • SDC Acquisition Impact:: Netcompany Banking Services (SDC) contributed 26.1% to reported revenue growth and expects DKK 300-350 million annual cost synergies by 2028.
  • Workforce Expansion:: Average FTEs rose 17.2% YoY (9,482 in Q3 2025), with attrition at 18% (up 0.5pp YoY), reflecting strategic hiring and integration challenges.
  • 2025 Guidance Update:: Organic revenue growth raised to 6-8% (from 5-8%), with narrowed EBITDA margin guidance of 16-18%, and long-term targets remain at 5-10% revenue growth and 20%+ EBITDA margin by 2029.

Revenue Growth Drivers

The company's revenue growth was driven by both the public and private sectors, with 6.7% and 11.7% growth, respectively. The acquisition of Netcompany Banking Services added 26.1% to the reported revenue growth. The company's focus on European platform companies using components, products, and AI to deliver solutions quickly, reliably, and responsibly is expected to drive future growth, as evident from the launch of new products and platforms, including VERÁ and AMPLIO Estate.

Operational Performance

Netcompany employed an average of 9,482 FTEs in Q3 2025, a 17.2% increase from Q3 2024. The attrition rate for the last 12 months was 18% for the organic part of the group, a small increase of 0.5 percentage points compared to Q3 2024. Organic free cash flow decreased from DKK 145.3 million in Q2 to negative DKK 11.5 million in Q3 2025, mainly driven by development in working capital.

Valuation and Outlook

With a P/E Ratio of 35.39 and EV/EBITDA of 17.58, the market seems to be pricing in significant growth expectations. Analysts estimate next year's revenue growth at 18.6%. The company's long-term targets include long-term organic revenue growth of between 5% and 10% annually and an adjusted EBITDA margin above 20% by 2029. The Q4 outlook and 2025 guidance remain unchanged, with Netcompany Banking Services and SDC integration on track.

Future Prospects

The company's focus on platform-based projects and product-driven solutions is expected to drive future growth, with VERÁ and similar platforms expected to account for 20-30% of revenue in the future. The consolidation in the banking market is seen as an opportunity, driving the need for IT cost reduction and agility. With a solid customer base and a strong pipeline, Netcompany is well-positioned for future growth.

3. NewsRoom

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Transactions in connection with share buyback programme

Feb -16

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Transactions in connection with share buyback programme

Feb -09

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Notice to convene the Annual General Meeting 2026

Feb -06

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Assessing Netcompany Group (CPSE:NETC) Valuation After Recent Short-Term Share Price Weakness

Feb -06

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Netcompany Group AS (STU:60N) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and ...

Feb -03

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Reporting of transactions made by persons discharging managerial responsibilities

Feb -03

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Launch of share buyback programme

Feb -03

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Netcompany - Interim report for the 12 months ended 31 December 2025 and Annual Report 2025

Feb -03

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.65%)

6. Segments

Public

Expected Growth: 8%

Netcompany Group A/S's 8% growth is driven by increasing demand for digital transformation, expansion into new markets, and strategic acquisitions. The company's strong track record of delivering complex IT projects, coupled with its ability to attract and retain top talent, has enabled it to capitalize on the growing need for digitalization in the public sector.

Private

Expected Growth: 10%

Private sector growth driven by increasing demand for digital transformation, cloud-based services, and cybersecurity solutions. Netcompany Group A/S's strong presence in the Nordic region and expansion into new markets contribute to its 10% growth. Additionally, strategic acquisitions and investments in emerging technologies, such as AI and blockchain, further fuel growth.

7. Detailed Products

Digital Transformation

Netcompany Group A/S offers digital transformation services to help businesses adapt to the digital age. This includes strategy development, process optimization, and technology implementation.

Cloud and Infrastructure Services

Netcompany provides cloud and infrastructure services, including cloud migration, infrastructure design, and managed services. This helps businesses optimize their IT infrastructure and reduce costs.

Cybersecurity Services

Netcompany offers cybersecurity services, including threat detection, incident response, and security consulting. This helps businesses protect themselves from cyber threats and ensure compliance with regulations.

Application Management Services

Netcompany provides application management services, including application development, maintenance, and support. This helps businesses optimize their application portfolio and reduce costs.

Data Analytics and Artificial Intelligence

Netcompany offers data analytics and artificial intelligence services, including data strategy, data science, and AI implementation. This helps businesses gain insights from their data and make data-driven decisions.

8. Netcompany Group A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Netcompany Group A/S is medium, as there are some alternatives available in the market, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Netcompany Group A/S is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Netcompany Group A/S is medium, as the company relies on a few key suppliers, but has some negotiating power.

Threat Of New Entrants

The threat of new entrants for Netcompany Group A/S is high, as the industry is attractive and there are low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for Netcompany Group A/S is high, as the industry is highly competitive and there are many players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.57%
Debt Cost 6.20%
Equity Weight 59.43%
Equity Cost 8.78%
WACC 7.73%
Leverage 68.27%

11. Quality Control: Netcompany Group A/S passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Wise

A-Score: 5.4/10

Value: 4.9

Growth: 9.2

Quality: 8.0

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Alten

A-Score: 4.9/10

Value: 7.3

Growth: 6.6

Quality: 5.7

Yield: 3.1

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Sopra Steria

A-Score: 4.8/10

Value: 7.4

Growth: 5.7

Quality: 5.3

Yield: 3.8

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Network International

A-Score: 3.6/10

Value: 1.3

Growth: 6.8

Quality: 6.4

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Globant

A-Score: 3.4/10

Value: 5.1

Growth: 8.3

Quality: 5.7

Yield: 0.0

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Netcompany

A-Score: 3.2/10

Value: 1.9

Growth: 6.7

Quality: 4.0

Yield: 0.0

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

301.2$

Current Price

301.2$

Potential

-0.00%

Expected Cash-Flows