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Softronic is a Swedish IT services and consultancy company. The company has new leadership and plans to expand its business. The latest report Q3-2025 was mixed with increased revenue and lower profit (margins), which have a negative impact on earnings per share this year.

The company is currently priced at its average historical P/E 16x and not considered cheap. In the short term the earnings per share can be expected to decline after the loss of a major IT services client (13% of IT services revenue) in Q3 2025. This revenue loss is partially compensated by the acquisition of Innofactor's members platform MMS.

Softronic has a net cash position (no net debt), >25% ROE, a 6% dividend yield. The dividend gives the benefit of a minimal return with a potential upside of future growth. I think Softronic is a lower risk (beta 0.5) dividend investment with long-term growth potential, short-listed to increase the investment.

Softronic AB provides a wide selection of IT and management services in Sweden. The company offers E-commerce platform, insurance systems, digitalization, E-health, digital sales platform, scanning, modern outsourcing, managed services, cyber defense as services and customer care system.

The last quarter was wake with only 3,3% growth, but I expect that the consultant market will start go improve after summer. P/E is current 13,8 and that is historically low