Modelon

* Generates no profits and negative cash flow, potentially diluting shareholder value through discounted fundraising and increasing investment risk.
* Return on invested capital (ROIC) has not consistently exceeded the weighted average cost of capital (WACC) over the past three years.
* Operates in a competitive landscape with other major players like Dassault Systèmes, Siemens, and Ansys, potentially limiting market dominance.
* Uncertain long-term sustainability of competitive advantages, as the company's ability to maintain its edge for decades is not clearly established.

* Strong recurring revenue model with subscription-based services accounting for <60% of revenues, enhancing business stability and predictability.
* Well-positioned for growth with meaningful reinvestment opportunities, focusing on innovation and strategic expansion in product range and new markets.
* Successfully expanded into new geographic markets, demonstrating adaptability and growth potential across diverse locations.
* Operates in a market with secular tailwinds, expecting 10% CAGR growth to reach $13.5bn by 2026, supporting sustainable long-term growth.
* Diverse revenue base with no single customer, partner, or country dominating sales, mitigating risks associated with concentration.

* Operating margin (EBIT) is below 20% and is not consistently increasing, indicating potential profitability challenges.
* Weak historical growth, with stock price, revenue, and earnings growth below desired benchmarks.
* Lack of dividend payments or growth, missing opportunities to reward shareholders and signal financial strength.
* Significant increase in CAPEX to Sales ratio over the last year, potentially indicating overinvestment or inefficient capital allocation.

* Strong gross profit margin exceeding 40%, indicating profitable product mix and pricing power.
* Healthy short-term liquidity with current assets 1.5 times greater than current liabilities.
* Low debt levels relative to operating cash flow and free cash flow, suggesting good debt management.
* Efficient inventory and accounts receivable management, both below 20% of sales and their 5-year averages.
* Transparent financial reporting with low one-time charges relative to sales over the past five years.

* Lack of consistent, attractive returns on capital, with the company not yet achieving a consistent ROIC of at least 15%.
* The absence of a clear dividend policy potentially limits returns for income-focused investors.
* Insufficient gender diversity in leadership, falling short of the benchmark of one-third female representation on the board.
* Limited track record for assessing the new CEO's performance in delivering on promises and creating value, given the recent appointment.

* Strong leadership with clear long-term vision and strategy, demonstrated by the new CEO Jan Häglund's focus on customer needs and innovative solutions.
* Committed founder involvement, with five of six founders remaining active in management or board roles, holding a significant 29% stake through Noledom Holding AB.
* Effective governance structure with independent directors capable of challenging management, and a board that understands the value creation process and aligns with business strategy.
* Consistent communication focus on long-term business value, maintaining transparency and building trust with investors through clear, timely updates.
* Presence of controlling owners with long-term commitment, including Noledom Holding AB, Accendo Capital, and RoosGruppen, each holding over 20% of capital.