Intellego Technologies (OM:INT): Assessing Valuation After Major Leadership Changes and Strong Earnings

Intellego Technologies (OM:INT) has announced a major management reshuffle. Henrik Resmark is set to assume both COO and CFO roles, while Hans Denovan shifts his focus to internal operations. The news comes alongside a strong quarterly earnings report.

See our latest analysis for Intellego Technologies.

There has been no shortage of action for Intellego Technologies lately. After a leadership shake-up and a substantial earnings beat, investor sentiment is clearly volatile, with a sharp 7.35% one-day share price gain following steep falls over the past month. Still, the company stands out for its longer-term momentum, as shown by an impressive 81.1% total shareholder return over the past year and a remarkable 243% return across three years.

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With shares rebounding sharply on the back of strong results and executive moves, the central question now is whether Intellego Technologies is trading at a bargain or if the market has already factored in all the growth ahead.

Price-to-Earnings of 4.9x: Is it justified?

Intellego Technologies currently trades at a price-to-earnings ratio of just 4.9x, sharply below key market benchmarks and supported by its most recent close at SEK46.

The price-to-earnings ratio, or P/E, indicates how much investors are willing to pay for each krona of earnings. A lower P/E can imply that the market expects slower growth ahead, or it could mean the stock is undervalued despite delivering strong profit growth.

In Intellego Technologies’ case, the P/E of 4.9x stands out compared to its Swedish and European electronic sector peers. These are much higher at 31.2x and 24.6x respectively. This wide gap suggests the stock is being priced at a significant discount, especially given its rapid historical earnings expansion and robust net profit margins.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 4.9x (UNDERVALUED)

However, challenges such as volatile short-term share swings and the lack of clear future guidance still cast some uncertainty over Intellego Technologies’ outlook.

Find out about the key risks to this Intellego Technologies narrative.

Another View: Our DCF Model Shows Bigger Undervaluation

While the low price-to-earnings ratio suggests the market is pessimistic or missing something, our SWS DCF model tells a different story. It estimates Intellego Technologies’ fair value close to SEK155.44, indicating shares may be trading at a steep 70.4% discount. Could the market really be this far off, or does risk lurk beneath the headlines?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Intellego Technologies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 870 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Build Your Own Intellego Technologies Narrative

If you want to form your own perspective or dive deeper into the numbers, you can quickly craft your own analysis and narrative in just a few minutes. Do it your way

A great starting point for your Intellego Technologies research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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