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Stock Analysis & ValuationEniro Group AB (publ) (0YG8.L)

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£0.38
Sector Valuation Confidence Level
Low
Valuation methodValue, £Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Methodn/a
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Eniro Group AB (publ) is a leading Nordic software-as-a-service (SaaS) company specializing in digital marketing solutions for small and medium-sized enterprises (SMEs) across Sweden, Norway, Denmark, and Finland. The company operates popular search platforms such as eniro.se, gulesider.no, krak.dk, and 0100100.fi, providing businesses with enhanced online visibility and customer engagement tools. Eniro also offers directory inquiry services, customer support solutions, and navigation apps like Eniro Navigation and Eniro På Sjön. Headquartered in Kista, Sweden, Eniro Group has transitioned from a traditional directory services provider to a digital-first SaaS model, leveraging its strong regional presence and trusted brand recognition. Operating in the competitive Media & Entertainment sector under the broader Technology industry, Eniro focuses on helping SMEs thrive in the digital economy through scalable, data-driven marketing solutions.

Investment Summary

Eniro Group presents a mixed investment case with both opportunities and risks. The company's pivot to a SaaS model has stabilized revenues (SEK 951M in latest reporting) and improved profitability (net income of SEK 68M), supported by strong operating cash flow (SEK 53M) and a healthy cash position (SEK 164M). Its low beta (0.524) suggests relative stability compared to the broader market. However, the modest market cap (~SEK 295M) and limited EPS (0.09) indicate challenges in scaling growth. The dividend yield (0.04 SEK/share) provides some income appeal, but investors should monitor the company's ability to maintain digital transformation momentum against larger tech competitors in the Nordic SME marketing space.

Competitive Analysis

Eniro Group competes in the fragmented Nordic digital marketing and local search industry, where its primary advantage lies in deep regional expertise and established brand recognition (especially with legacy directory services). The company's multi-platform approach (spanning search engines, apps, and navigation tools) creates cross-selling opportunities for SME clients. However, it faces intense competition from global tech giants offering similar services at scale. Eniro's localization capabilities and understanding of Nordic business needs provide differentiation, but its smaller size limits R&D budgets compared to deep-pocketed rivals. The shift to SaaS has improved margins, but growth depends on convincing SMEs to adopt premium digital services rather than free alternatives. Eniro's debt position (SEK 43M) is manageable, giving flexibility, but the company must continue innovating its product suite to avoid being marginalized by competitors with more advanced AI-driven marketing tools. Its partnership model helps expand reach without heavy customer acquisition costs - a key advantage in cost-conscious Nordic markets.

Major Competitors

  • Schibsted ASA (SCHB.ST): Schibsted is a stronger capitalized Nordic media conglomerate with competing local search platforms (finn.no, blocher.no) and classifieds services. Its larger scale enables better tech investments, but lacks Eniro's pure-play SME focus. Strong in Norway but less dominant in Sweden/Denmark.
  • Alphabet Inc. (GOOGL): Google dominates search advertising globally and in the Nordics through Google My Business and Ads platforms. Far superior resources and AI capabilities, but less specialized in local Nordic SME needs. Eniro competes through hyper-localization and bundled services.
  • Meta Platforms Inc. (FB): Meta's Facebook and Instagram platforms are major alternatives for SME digital marketing. Strong in social media advertising but lacks Eniro's dedicated local search functionality and directory services heritage in Nordic markets.
  • Telia Company AB (TEGY.ST): Telia's telecom infrastructure provides potential to bundle digital services, but its marketing solutions are less developed than Eniro's. Strong existing SME relationships through connectivity services could pose future competition.
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