Kontigo Care

* Potential regulatory interference due to possible shifts in addiction treatment responsibility from municipalities to regional care.
* Limited track record of successful international expansion, with current partnerships still in the scaleup phase.
* Lack of clear financial targets from the company, making it challenging to assess long-term growth potential.
* Short-term pressure on profitability/cashflows due to planned investments in Previct Drugs and Previct Safety in 2024 and partly 2025.

* Strong recurring revenue model with over 90% recurring revenues, enhancing business stability and predictability.
* Well-positioned to benefit from secular tailwinds in digital health solutions and addiction care, supporting long-term growth potential.
* Dominant market position in Sweden, with over 60% of municipalities contracted, indicating a strong competitive advantage.
* Innovative product portfolio, including Previct Platform, Previct Drugs and Pevict Safety, addressing critical needs in digital addiction care and screening with potential for long-term relevance.
* Close collaboration with customers for innovation and high employee satisfaction, fostering continuous improvement and talent retention.

* Operating Margin (EBIT) is below 20% and is not consistently increasing, suggesting potential challenges in cost management or operational efficiency.
* Poor historical stock performance, compounded growth since IPO falling below 10%.
* Inconsistent revenue and earnings growth, failing to consistently outperform industry averages or maintain stable growth over extended periods.
* Lack of dividend payments or consistent growth, potentially limiting the appeal to income-focused investors.

* Strong gross profit margin exceeding 40%, indicating good pricing power and potential for accelerated profits with sales growth.
* Net Debt less than two times Operating Cash Flow and five times Free Cash Flow, suggesting efficient debt management and repayment capacity.
* Cash and short-term investments cover expected cash burn for more than two years, indicating financial stability and reduced need for immediate fundraising.
* Likely to become sustainably cash flow-positive in the near future, signaling potential for self-funded operations and attracting less speculative investors.
* Efficient accounts receivable management with a ratio below 20% and under the 5-year average, indicating effective collection practices.

* Recent CEO appointment (2023) limits assessment of long-term track record in value creation and consistent delivery on promises.
* Lack of clear dividend policy, potentially limiting appeal to income-focused investors.
* Share count has increased over time without corresponding EPS growth, signaling potential dilution concerns.
* Management team as a group owns less than 5% equity, which may not fully align their interests with shareholders.
* Limited information on sustainability reporting and incorporation of ESG metrics in executive compensation, potentially lagging in addressing stakeholder demands.

* Strong leadership with CEO demonstrating long-term vision, industry expertise, and commitment to innovation, particularly in digital addiction care solutions.
* Lean, decentralized organization promoting accountability, with a well-defined strategic plan focused on international expansion and value creation.
* Transparent and balanced investor communication, consistently providing relevant metrics and focusing on long-term business value.
* High insider ownership (19%) and presence of long-term committed owners, indicating confidence in the company's future.
* Diverse and experienced board of directors, aligned with business strategy and demonstrating strong corporate governance practices.