Addnode Group

Proact IT Group

CombinedX

* Lack of major recurring revenue streams, potentially impacting business stability and predictability.
* Limited geographic diversification, with a high concentration of sales in Sweden.
* Absence of easily identifiable sustainable competitive advantages typical in the IT consulting industry.
* Not expected to achieve five-fold growth within a decade, indicating potential limitations in long-term expansion.
* Operates in a fragmented market with numerous competitors, which could impact pricing power and market share.

* Strong positioning in specialized IT consulting niches, leading to above-average profitability and solid returns on invested capital.
* Benefits from secular tailwinds in digitalization, cloud computing, and AI, with a business model unlikely to be disrupted in the near future.
* Demonstrates operational stability with minimal regulatory interference, independence from key individuals, and limited cyclical dependencies.
* Proactively promotes environmental sustainability and maintains high employee satisfaction, as evidenced by a strong eNPS score.
* Products contribute to the greater good by helping businesses digitize and become more efficient, while avoiding any environmental or ethical issues.

* Inconsistent earnings growth, failing to maintain 10%+ growth over five years or show stable growth over a decade.
* Operating margin below 20% and not increasing for three consecutive years, suggesting potential efficiency or pricing power issues.
* Stock price has not compounded by at least 10% since IPO, indicating underperformance in long-term shareholder value creation.

* Strong financial health with current assets 1.5 times greater than current liabilities, low debt levels, and good interest coverage ratio.
* Efficient cash flow management, demonstrated by high Operating Cash Flow and Free Cash Flow conversion rates above 80% over the past five years.
* Attractive dividend yield between 1-2.5 times market median, well-covered by cash flows, with recent growth exceeding 7% annually.
* Return on Assets outperforming industry average over the past five years, indicating superior asset utilization.

* Management team's average tenure is slightly less than five years, potentially limiting institutional knowledge.
* Inconsistent achievement of the 10% EBIT margin target, despite overall growth and transparency about challenges.
* Lack of opportunistic action on attractively priced stock, opting for dividends over share buybacks.
* Absence of a controlling owner with more than 20% voting rights, which could provide additional long-term stability.
* Limited experience of CEO in IT consulting industry prior to joining CombinedX, though mitigated by five years at the company.

* Strong visionary leadership from CEO Jörgen Qwist, with a clear long-term outlook and commitment to creating leading specialized IT consulting brands.
* Decentralized organization promoting accountability, with a management team experienced in M&A and listed companies.
* Consistent communication strategy focusing on long-term value creation, with transparent reporting and upfront discussions about challenges.
* Significant insider ownership, including founders, board members, and management, aligning interests with shareholders.
* Diverse and experienced board of directors with relevant expertise in IT consulting, digitalization, and entrepreneurship.

Avensia

* Limited growth potential, not expected to achieve five-fold growth in a decade, with a modest 10% annual organic sales growth target.
* Lack of clear, sustainable competitive advantages typical in the IT consulting industry, heavily dependent on personnel.
* High concentration of sales in Sweden and reliance on specific e-commerce platforms (Optimizely and Commercetools) indicates a lack of revenue diversification.
* No significant reinvestment opportunities or plans for new product launches or market expansions beyond current strategy.

* Strong recurring revenue base with 80-90% of sales coming from current customers, indicating customer loyalty and business stability.
* Asset-light business model allows for scalable growth without expensive reinvestment, typical of IT consulting firms.
* Benefits from secular e-commerce tailwinds and operates in a high-ROIC industry with limited direct competition in its niche.
* Demonstrates pricing power and ability to increase prices above inflation without losing customers.
* Proactively promotes environmental sustainability and maintains positive relationships with customers and employees.

* Return on Equity (ROE) and Return on Assets (ROA) underperforming, indicating possible inefficiencies in capital utilization.
* Lack of consistent long-term earnings growth, with EPS growth below historical averages and not consistently above 10% over five years.
* Absence of consistent dividend increases over the past 10 years, suggesting potential instability in long-term shareholder returns.

* Strong gross profit margin exceeding 40%, indicating profitable product mix and pricing power.
* Revenue growth consistently above industry average over the last five years, signaling market share gains and competitive strength.
* Healthy debt management with Net Debt less than two times Operating Cash Flow and five times Free Cash Flow.
* Solid interest coverage ratio, with earnings (EBIT) covering interest on debt more than five times.
* Attractive dividend yield between 1-2.5 times market median, with recent dividend growth exceeding 7% annually over the past three years.

* Concentrated management ownership, with CEO holding a significant portion of management's 7% stake, potentially leading to an imbalance in decision-making influence.
* Less than 50% of board members have substantial holdings in Avensia, which may impact their alignment with shareholder interests.
* Limited track record in delivering on promises, as financial targets were only recently announced, making it difficult to assess management's execution capability over time.

* Strong founder-led leadership with CEO Robin Gustafsson's deep industry knowledge and long-term commitment, driving Avensia's growth and strategic focus on e-commerce solutions.
* Lean, decentralized organization with a management team averaging over five years tenure, promoting accountability and adaptability in a rapidly evolving industry.
* Consistent communication strategy focusing on long-term value creation, with transparent reporting and candid discussions about both successes and challenges.
* Significant insider ownership, with management and board members holding about 30% of capital, aligning their interests with shareholders and demonstrating confidence in the company's future.
* Board of directors with relevant industry experience and entrepreneurial backgrounds, well-positioned to guide Avensia's strategic direction and value creation process.

Table Heading
Net Sales	1.33 B	1.38 B	837.71 M	837.71 M	832.82 M
Revenue	5.482	7.246	8.123	9.654	9.123
Net Sales Growth	123	235	5435	123	321
EBIT	123	235	5435	345	345
EBIT Margin	123	235	5435	23	23
DIVIDER
Net Income	123	235	5435	45	56