Hemnet Group AB (publ) (HEM.ST) | Investment Case

1. Company Snapshot

1.a. Company Description

Hemnet Group AB (publ) operates a property platform.Its platform gathers various property buyers, sellers, and real estate agents in one place.The company was founded in 1998 and is based in Stockholm, Sweden.

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1.b. Last Insights on HEM

Hemnet Group AB (publ) faced challenges due to mixed European market performance. Dovish comments from the US Federal Reserve Chair and easing US-China trade tensions led to a cautiously optimistic environment. Although no recent earnings release data is available, the company's performance might be impacted by fluctuating market conditions. As investors focus on undervalued stocks, Hemnet's valuation could come under scrutiny. According to recent reports, European stocks with estimated discounts up to 47.3% may attract investors seeking value, potentially affecting Hemnet's market positioning.

1.c. Company Highlights

Last Price	170.5
Change Percentage	7.10%
Open	162
Previous Close	159.2
Market Cap ( Millions)	16237
Volume	861306
Year High	430.2
Year Low	158.5
M A 50	203.4
M A 200	277.89

FCF Yield	3.97%
Dividend Yield	1.00%
ROE	45.35%
Debt / Equity	55.13%
Net Debt / EBIDTA	54.03%
Price To Book	14.31
Price Earnings Ratio	29.96
Price To FCF	25.2
Price To sales	10.52
EV / EBITDA	21.09

2. Hemnet's Q3 2025: Strong ARPL Growth Amidst Challenging Market

Hemnet Group's Q3 2025 financial performance showed a mixed bag, with net sales decreasing by 1.5% to SEK 367 million, driven by low listing volumes, while Average Revenue Per Listing (ARPL) grew by 21% due to increased demand for value-added services. The company's EBITDA declined by 5.9% to SEK 195.4 million, resulting in an EBITDA margin of 53.3%. Earnings Per Share (EPS) came in at SEK 1.4, beating analyst estimates of SEK 1.24. The company's free cash flow was SEK 808 million, a 36% increase year-over-year, and net debt leverage ended at 0.5.

Publication Date: Oct -27

                                    📋 Highlights
                                    ARPL Growth & Sales Decline::
                                                ARPL surged 21% to SEK 367 million despite a 1.5% net sales drop due to low listing volumes (-19.2% paid listings).
Strong Free Cash Flow::
                                                Free cash flow rose 36% YoY to SEK 808 million, with net debt leverage at 0.5, reflecting robust cash generation.
Strategic Product Innovation::
                                                Launched Hemnet Insights (AI tool) and a success-based pricing model, driving 70% more traffic and 50% higher engagement for Max package.
B2B Segment Resilience::
                                                B2B revenue grew 1.5%, with property developers contributing SEK 13 million (+14% YoY) and agents generating SEK 26 million (+2%).
Marketing & Brand Impact::
                                                Brand awareness increased 11 percentage points YoY, supporting 15-20% growth ambition through product mix and BOS penetration, not price hikes.

                                

Revenue Mix and Growth Drivers

The decline in paid published listings by 19.2% was a significant contributor to the revenue decrease. However, the B2B segment grew by 1.5% despite a challenging market environment, with revenues from real estate agents increasing by 2% to SEK 26 million, and property developers contributing SEK 13 million, up 14% year-on-year. Hemnet's management noted that the sales process has changed, with a 52-day sales cycle, down from 70 days previously, leading to 70% of property transactions happening with the seller before buying.

Strategic Initiatives and Innovation

Hemnet is accelerating product innovation, including launching Hemnet Insights, an AI-powered analytic tool, and a new enhanced offering for property developers. The company is testing a new commercial model where sellers only pay once the property is sold, which has received positive feedback from agents and sellers. The company aims to adapt its product proposition to the market, ensuring relevance throughout the sales process.

Valuation and Outlook

With a P/E Ratio of 39.16 and an EV/EBITDA of 27.36, Hemnet's valuation suggests that the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 22.1%. Hemnet's strong cash flow generation and robust return on invested capital (ROIC) of 29.45% provide a solid foundation for future growth. The company's commitment to investing in marketing, talent, and product, with a fixed OpEx growth rate currently at around 15%, is expected to drive long-term value creation.

3. NewsRoom

Assystem And 2 More European Companies Estimated To Be Priced Below Their Intrinsic Value

Dec -03

Source:

European Value Stocks Priced Below Estimated Worth

Dec -03

Source:

Global's Top Undervalued Small Caps With Insider Buys In November 2025

Nov -19

Source:

European Stocks With Estimated Discounts Up To 47.3% That May Offer Value

Oct -23

Source:

High Growth Tech Stocks in Europe to Watch July 2025

Jul -23

Source:

Exploring 3 High Growth Tech Stocks In Europe

Jun -24

Source:

European Market: Three Stocks That May Be Trading Below Estimated Value

Jun -24

Source:

High Growth Tech Stocks To Watch In Europe May 2025

May -08

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.23%)

6. Segments

Listing Services

Expected Growth: 8.23%

Hemnet Group AB's 8.23% growth in Listing Services is driven by increasing demand for online real estate platforms, strategic partnerships with property developers, and innovative features enhancing user experience. Additionally, the company's strong brand recognition, expanding market share, and effective pricing strategy contribute to its growth momentum.

Other

Expected Growth: 8.23%

Hemnet Group AB's 8.23% growth is driven by increasing demand for online real estate services, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on digitalization, improved user experience, and strong brand recognition have contributed to its growth momentum.

7. Detailed Products

Hemnet

Sweden's largest property portal, providing a platform for property buyers, sellers, and agents to connect and facilitate property transactions.

Hemnet Analytics

A data analytics tool providing insights on the Swedish property market, including sales data, price trends, and market analysis.

Hemnet Valuation

An automated valuation model (AVM) providing estimated property values, helping buyers, sellers, and agents make informed decisions.

Hemnet Advertising

Targeted online advertising solutions for real estate agents, developers, and property owners to reach potential buyers and renters.

Hemnet Data Services

A data-as-a-service platform providing access to Hemnet's property data, including listings, sales data, and market trends.

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

Forces Ranking

Threat Of Substitutes

Hemnet Group AB (publ) operates in a market with moderate threat of substitutes, as there are alternative platforms and websites that offer similar services, but Hemnet's strong brand recognition and market presence mitigate this threat to some extent.

Bargaining Power Of Customers

Hemnet Group AB (publ) has a large customer base, but individual customers have limited bargaining power due to the company's dominant market position and the lack of alternative options.

Bargaining Power Of Suppliers

Hemnet Group AB (publ) has a diversified supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The threat of new entrants is high in the online real estate market, as barriers to entry are relatively low, and new companies can easily enter the market with innovative business models and technologies.

Intensity Of Rivalry

The online real estate market is highly competitive, with several established players competing for market share, which leads to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	28.63%
Debt Cost	5.60%
Equity Weight	71.37%
Equity Cost	9.00%
WACC	8.03%
Leverage	40.11%

11. Quality Control: Hemnet Group AB (publ) passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Telenor

A-Score: 6.9/10

Value: 4.8

Growth: 3.3

Quality: 5.7

Yield: 8.8

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

Orange Polska

A-Score: 6.5/10

Value: 7.3

Growth: 4.1

Quality: 4.5

Yield: 8.1

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

Rightmove

A-Score: 5.6/10

Value: 1.4

Growth: 6.0

Quality: 9.9

Yield: 2.5

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

Auto Trader

A-Score: 5.1/10

Value: 1.4

Growth: 6.7

Quality: 9.6

Yield: 1.9

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

Hemnet

A-Score: 4.0/10

Value: 0.7

Growth: 9.4

Quality: 9.0

Yield: 0.6

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

Adevinta

A-Score: 3.4/10

Value: 3.9

Growth: 6.1

Quality: 3.6

Yield: 0.0

Momentum: 4.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

8.38%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.03%

Hemnet Group AB (publ) - SE0015671995

1. Company Snapshot

1.a. Company Description

Hemnet Group AB (publ) operates a property platform.Its platform gathers various property buyers, sellers, and real estate agents in one place.The company was founded in 1998 and is based in Stockholm, Sweden.

1.b. Last Insights on HEM

1.c. Company Highlights

Expensive

Higher Growth

Better Quality

Earnings Miss

Earnings Beats

Revenues Miss

Revenues Beats

2. Hemnet's Q3 2025: Strong ARPL Growth Amidst Challenging Market

Revenue Mix and Growth Drivers

Strategic Initiatives and Innovation

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.23%)

6. Segments

Listing Services

Expected Growth: 8.23%

Other

Expected Growth: 8.23%

7. Detailed Products

Hemnet

Hemnet Analytics

Hemnet Valuation

Hemnet Advertising

Hemnet Data Services

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

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Hemnet Group AB (publ) passed 7 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

170.5$

Current Price

170.5$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA