| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 55.10 | 105 |
| Intrinsic value (DCF) | 42.03 | 56 |
| Graham-Dodd Method | 14.60 | -46 |
| Graham Formula | 45.80 | 70 |
Qt Group Oyj (0RG5.L) is a Finland-based global leader in cross-platform software development tools, offering a comprehensive suite of products under both commercial and open-source licenses. The company specializes in Qt Design Studio, Qt Creator, and Qt Framework, which provide robust C++ library classes and APIs for seamless application development across multiple industries, including automotive, industrial automation, consumer electronics, and medical sectors. Founded in 1995 and headquartered in Espoo, Finland, Qt Group has expanded its footprint across key markets such as the U.S., Japan, China, and Europe. With a strong focus on professional services, consulting, and training, Qt Group empowers developers to create high-performance, visually appealing applications. The company’s open-source and commercial licensing models cater to diverse customer needs, reinforcing its relevance in the rapidly evolving software development landscape. As digital transformation accelerates, Qt Group’s tools are increasingly critical for embedded systems, IoT, and automotive HMI applications, positioning it as a key player in the technology sector.
Qt Group Oyj presents an attractive investment opportunity due to its strong market position in cross-platform software development tools, particularly in high-growth sectors like automotive and industrial automation. The company’s revenue of €209 million (FY 2024) and net income of €57.3 million reflect solid profitability, supported by a healthy operating cash flow of €53.7 million. With no debt burden (total debt of just €4.3 million) and €64.9 million in cash reserves, Qt Group maintains a robust balance sheet. However, its high beta (1.768) suggests volatility, likely tied to its exposure to cyclical tech demand. The lack of dividends may deter income-focused investors, but growth-oriented investors may appreciate its reinvestment strategy. Risks include competition from larger software vendors and reliance on key industries like automotive, which faces macroeconomic uncertainties.
Qt Group Oyj’s competitive advantage lies in its specialized, cross-platform development tools that cater to embedded systems and high-performance applications. Unlike general-purpose software vendors, Qt’s focus on C++ frameworks and UI/UX design tools gives it a niche edge, particularly in automotive and industrial automation, where reliability and performance are critical. The dual-licensing model (open-source and commercial) broadens its customer base, from indie developers to large enterprises. However, Qt faces competition from larger players like Microsoft (Visual Studio) and JetBrains (CLion), which offer broader ecosystems but lack Qt’s embedded systems specialization. Qt’s smaller scale limits its R&D budget compared to giants like Adobe (XD) or Siemens (Mendix), but its deep industry expertise and loyal developer community provide resilience. The company’s partnerships with automotive OEMs and industrial firms further solidify its positioning, though it must continuously innovate to fend off open-source alternatives and low-code platforms.