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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

2. Hemnet's Strong FY 2025 Results: A Resilient Performance Amidst a Challenging Market

Hemnet's full-year 2025 results demonstrated strong resilience, with net sales increasing by 9% to SEK 1,526 million and EBITDA growing by 7% to SEK 768 million. The average revenue per listing (ARPL) grew by 28% for the full year, driven by demand for value-added services, particularly Hemnet Premium. Earnings per share (EPS) came in at SEK 1.07, beating analyst estimates of SEK 1.01. The company's EBITDA margin was 50.3% for the full year, with a decrease in Q4 due to lower listing volumes.

Publication Date: Feb -08

📋 Highlights
  • Revenue Growth Amid Challenges:: Full-year net sales rose 9% to SEK 1,526 million despite a 26.4% decline in new listings, driven by 28% annual ARPL growth.
  • EBITDA Margin Stability:: Full-year EBITDA reached SEK 768 million (7% increase), maintaining a 50.3% margin, though Q4 EBITDA dipped 12.8% to SEK 154 million due to lower listing volumes.
  • Innovative Product Launch:: "Sell First, Pay Later" pilot showed 40% higher listing volume YoY, with plans for 2026 rollout across Sweden, despite a potential 11-18% Q1 revenue impact.
  • Strong Financial Position:: Free cash flow grew 7% to SEK 745 million, net debt leverage stood at 0.7x, and a 12% dividend increase to SEK 1.90 per share was proposed.
  • AI and Strategic Partnerships:: Launched AI-driven features like semantic tagging of 1.4M+ listings and partnerships with real estate brands (e.g., Svensk Fastighetsförmedling), enhancing pre-market listing visibility and revenue sharing.

Financial Highlights

The company's financial performance was characterized by a strong growth in net sales and EBITDA, driven by the increasing ARPL. Hemnet's free cash flow increased by 7% to SEK 745 million, and the net debt leverage ended the year at 0.7x, indicating a strong financial position. The proposed dividend of SEK 1.90 per share, a 12% increase from last year, reflects the company's confidence in its future prospects.

Growth Drivers and Strategic Initiatives

Hemnet is gearing up for the future with several exciting product launches planned for 2026, including the rollout of "Sell First, Pay Later" in Stockholm. The company is well-prepared to drive the market forward, with a strengthened product portfolio and organization. "Sell First, Pay Later" is a new model where sellers pay only if they successfully sell their property, and it has shown promising results in a pilot study. Hemnet is also leveraging AI to further strengthen its position and elevate its user experience.

Valuation and Outlook

With a P/E Ratio of 23.65 and an EV/EBITDA of 16.62, Hemnet's valuation appears reasonable, considering its strong financial performance and growth prospects. Analysts estimate next year's revenue growth at 18.0%, indicating a positive outlook for the company. Hemnet's strong market position, with a large and stable audience, and its commitment to investing in its proposition, make it well-positioned for future success.

Key Takeaways

Hemnet's FY 2025 results demonstrate its resilience and ability to drive growth through its value-added services and strategic initiatives. With a strong financial position and a positive outlook, the company is well-equipped to continue delivering value to its users, customers, and real estate agents. As Hemnet continues to invest in its proposition and leverage AI to strengthen its position, investors can expect the company to remain a key player in the Swedish property market.

3. NewsRoom

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Hemnet Group AB (HMNTY) Q4 2025 Earnings Call Highlights: Resilience Amid Market Challenges

Jan -29

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Exploring 3 European Undervalued Small Caps With Insider Action

Jan -19

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3 European Stocks Estimated To Be Trading At Up To 49.9% Discount

Jan -12

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Global's January 2026 Stock Picks For Estimated Value Opportunities

Jan -12

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European Value Stocks With Estimated Discounted Valuations

Jan -12

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3 European Stocks Estimated To Be Up To 49.5% Below Intrinsic Value

Dec -31

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3 European Stocks That May Be Trading Below Their Estimated Value

Dec -31

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European Equities Trading Below Estimated Intrinsic Values December 2025

Dec -30

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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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Orange Polska

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Growth: 4.1

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Volatility: 8.3

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Auto Trader

A-Score: 5.2/10

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Yield: 2.5

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Hemnet

A-Score: 3.9/10

Value: 1.2

Growth: 9.4

Quality: 8.9

Yield: 0.6

Momentum: 0.5

Volatility: 3.0

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Value: 3.8

Growth: 6.0

Quality: 3.6

Yield: 0.0

Momentum: 4.0

Volatility: 2.7

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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

112.1$

Current Price

112.1$

Potential

-0.00%

Expected Cash-Flows