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1. Company Snapshot

1.a. Company Description

Dustin Group AB (publ) offers online IT products and services in the Nordic region and the Netherlands.It operates through three segments: Small and Medium-sized Businesses, Large Corporate and Public Sector, and Business to Consumer.It sells hardware, software, and related services and solutions.


The company act as a strategic IT partner primarily for small and medium-sized, and large-sized businesses, as well as the public sector and consumers.Dustin Group AB (publ) was founded in 1984 and is headquartered in Nacka Strand, Sweden.

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1.b. Last Insights on DUST

Dustin Group AB's recent performance was positively driven by forecasted earnings growth of 143.37% per year, indicating a significant turnaround. The company's projected path to profitability within three years is a key driver. Revenue growth of 4.2% annually is expected, albeit slightly trailing the Swedish market's pace. According to recent forecasts, a return to profitability is anticipated, which could bolster investor confidence. No recent share buyback or new product announcements were reported. (Source: Dustin Group's forecasted data)

1.c. Company Highlights

2. Dustin Group's Q4 Results: Stabilization Amidst Weak Market

Dustin Group reported Q4 sales of SEK 5.056 billion, representing an organic growth of 3.6%. The LCP segment showed strength with an organic growth of 7.0%, mainly driven by the Nordics. Gross profit was SEK 642 million, with a gross margin of 12.7% due to seasonally low sales. Adjusted EBITA was SEK 83 million, with an EBITA margin of 1.6%. The actual EPS came out at '0.005', lower than estimates at '0.02'.

Publication Date: Nov -04

📋 Highlights
  • LCP Segment Growth:: Organic growth of 7.0% (SEK 3.9 billion sales) driven by Nordics, though gross margin declined due to price pressure.
  • Adjusted EBITA Surge:: Increased to SEK 83 million (1.6% margin) from SEK 28 million, reflecting cost savings and efficiency measures.
  • Cost Savings Achieved:: Annual cost reductions of SEK 200 million from efficiency initiatives, targeting further profitability improvements.
  • SMB Segment Decline:: Sales dropped 7.9% YoY (SEK 1.2 billion), but adjusted to 2.2% decline excluding accounting and currency effects.
  • Cash Flow Challenges:: Negative operating cash flow of SEK 73 million due to loan repayments post-rights issue, with IT investments at SEK 36 million impact.

Segment Performance

The SMB segment sales were SEK 1.2 billion, 7.9% below last year, but excluding the accounting treatment and ForEx effect, the decline was 2.2%. The LCP segment sales were SEK 3.9 billion, up 4.6% from last year, with an organic growth of 7%. The gross margin in LCP decreased due to price pressure and lower margin contracts. As Johan Karlsson noted, "the competitive landscape is driven by market trends, such as Windows Exchange and AI PCs, which are also seen in the Nordics."

Operational Highlights and Cash Flow

The company completed efficiency measures, resulting in cost savings of SEK 200 million annually, and implemented strategic changes for long-term profitability improvements. Cash flow from operating activities was negative SEK 73 million, mainly driven by the repayment of loans after the rights issue. The company invested SEK 52 million in the quarter, with SEK 36 million affecting cash flow, mainly linked to IT development investments.

Valuation Metrics

Analysts estimate next year's revenue growth at 4.9%. Dustin Group's current valuation metrics include a P/E Ratio of -0.32, P/B Ratio of 0.16, and P/S Ratio of 0.13. The EV/EBITDA is 26.16, indicating a relatively high valuation. The company's ROE is -45.72%, and ROIC is 0.12%, suggesting a challenging profitability environment.

Outlook and Strategy

The company plans to sharpen its strategic focus to increase profitability, including reducing costs by approximately SEK 200 million and closing the consumer business. They also updated their sustainability targets, including climate targets for 2030 and 2050, and circularity and social impact targets for 2030. With the current valuation metrics, the market is pricing in a challenging future for the company, and investors will be closely watching the execution of the new strategy.

3. NewsRoom

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Dustin Group (OM:DUST) Faces Ongoing Losses, Turnaround Hopes Center on Forecasted 143% Earnings Growth

Oct -09

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Dustin Group AB (STU:9DG) Q3 2025 Earnings Call Highlights: Navigating Challenges with ...

Jul -03

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Exploring 3 High Growth Tech Stocks In Europe

Jun -03

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Dustin Group AB (FRA:9DG) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...

Jan -09

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Dec -18

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Nov -20

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Top 3 High Growth Tech Stocks in Sweden to Watch

Oct -22

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Dustin Group AB (LTS:0R5W) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...

Oct -17

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.42%)

6. Segments

Large Corporate and Public

Expected Growth: 4.0%

Dustin Group AB's Large Corporate and Public segment growth of 4.0% is driven by increasing demand for IT services and solutions from large corporations and public sector entities. This growth is fueled by digital transformation initiatives, cloud adoption, and cybersecurity concerns, as well as the need for efficient IT infrastructure and managed services.

Small and Medium-sized Business

Expected Growth: 2.0%

Dustin Group AB's 2.0% growth in Small and Medium-sized Business segment is driven by increasing demand for IT services, growing e-commerce adoption, and strategic partnerships. Additionally, the company's focus on digital transformation, cybersecurity, and cloud services resonates with SMBs, leading to increased sales and revenue growth.

7. Detailed Products

IT Products

Dustin Group AB (publ) offers a wide range of IT products including laptops, desktops, tablets, smartphones, and accessories from leading brands.

Cloud Services

Dustin Group AB (publ) provides cloud services such as infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) to support businesses in their digital transformation.

Cybersecurity Solutions

Dustin Group AB (publ) offers a range of cybersecurity solutions including threat detection, incident response, and penetration testing to protect businesses from cyber threats.

Managed Services

Dustin Group AB (publ) provides managed services including IT outsourcing, helpdesk support, and monitoring to help businesses optimize their IT operations.

Professional Services

Dustin Group AB (publ) offers professional services including IT consulting, implementation, and training to help businesses implement and integrate new technologies.

8. Dustin Group AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Dustin Group AB (publ) is moderate due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the industry, and the company needs to continuously innovate to stay ahead of potential competitors.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, and the company needs to focus on differentiating itself through its products and services.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.25%
Debt Cost 5.43%
Equity Weight 47.75%
Equity Cost 9.33%
WACC 7.29%
Leverage 109.42%

11. Quality Control: Dustin Group AB (publ) passed 0 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
Crayon

A-Score: 4.5/10

Value: 3.4

Growth: 6.1

Quality: 5.3

Yield: 0.0

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Atos

A-Score: 4.3/10

Value: 10.0

Growth: 1.7

Quality: 6.8

Yield: 0.0

Momentum: 7.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Adesso

A-Score: 4.2/10

Value: 5.3

Growth: 7.1

Quality: 3.4

Yield: 0.6

Momentum: 7.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
FD Technologies

A-Score: 3.8/10

Value: 5.0

Growth: 2.2

Quality: 2.4

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Nayax

A-Score: 3.5/10

Value: 0.2

Growth: 8.1

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Dustin

A-Score: 2.0/10

Value: 8.2

Growth: 1.0

Quality: 2.1

Yield: 0.6

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.85$

Current Price

1.85$

Potential

-0.00%

Expected Cash-Flows