Added to YB: 2026-10-08
Pitch date: 2026-10-04
VIT-B.ST [neutral]
Vitec Software Group AB (publ)
+9.64%
current return
Author Info
Slow Compounding is an ex buy-side analyst looking for high-quality companies that create high shareholder returns. Investing for the long-term. Sign up for the newsletter.
Company Info
Vitec Software Group AB (publ) develops and delivers vertical software solutions in Sweden, Denmark, Finland, Norway, the Netherlands, the United States, and internationally.
Market Cap
SEK 11.1B
Pitch Price
SEK 271.80
Price Target
N/A
Dividend
1.32%
EV/EBITDA
11.96
P/E
23.90
EV/Sales
3.75
Sector
Software
Category
growth
Vitec Software Group AB - $VIT-B.ST
VIT-B.ST (deep dive): Vitec is a proven vertical-software serial acquirer with 49 decentralized units, ~85% recurring revenue and 2007–2025 EBITA-per-share growth of 20.2% annually. Yet average acquisitions at 11.6x EBT/EBITA imply only an 8–9% initial pre-tax yield, while total capex, mostly capitalized development expenditure, absorbs roughly half of adjusted gross cash flow and expansion has required recurring equity issuance. The key issue is whether organic growth and acquisition discipline can overcome modest capital returns and dilution.
Read full article (25 min)