(HMS) HMS Networks (publ) - Ratings and Ratios

HMS Networks AB (publ), trading under the ticker symbol HMS on the Stockholm Stock Exchange, is a Swedish company that specializes in enabling industrial equipment to communicate and share information seamlessly. Founded in 1988 and headquartered in Halmstad, Sweden, HMS has established itself as a key player in the Industrial Internet of Things (IIoT) space.

The company’s product portfolio is extensive, catering to a wide range of industrial connectivity needs. Anybus Embedded, for instance, simplifies multi-network connectivity by allowing a single development project to support multiple industrial networks. Anybus Gateways act as bridges between devices, machines, and systems, ensuring interoperability across different protocols. Anybus Wireless extends this connectivity to wireless domains, supporting Bluetooth, Wi-Fi, cellular networks, and industrial Ethernet. Complementing these offerings, Anybus Diagnostics provides tools for monitoring, analyzing, and troubleshooting industrial networks, ensuring operational efficiency and minimizing downtime.

Under the Ewon brand, HMS offers a suite of remote access and IIoT solutions. Ewon Cosy is an industrial VPN device that provides secure remote access to machines, while Ewon Flexy serves as a flexible IIoT gateway for remote access and data services. The Ewon Flexy Extension Cards allow users to adapt to evolving communication technologies without compromising their existing investments. Ewon Talk2M is a cloud-based platform that enables customers to access and manage their industrial assets remotely. Additionally, Ewon Netbiter provides remote connectivity solutions tailored for energy generation systems, and Argos delivers a cloud-based dashboard for IIoT applications.

HMS also offers Intesis solutions, which include protocol translators, air conditioner interfaces, and cloud control systems. The Ixxat brand covers a range of industrial communication products, such as PC interfaces, repeaters, bridges, routers, gateways, and safety solutions. Furthermore, the company provides Owasys wireless communication platforms and offers brand labeling, system integration, software development, and maintenance services to its customers.

HMS Networks serves a diverse customer base, including device manufacturers, machine builders, system integrators, and end users. The company’s solutions are widely used in industries such as industrial automation, energy, transportation, and building automation. With a market capitalization of 25,815.29 million SEK, HMS operates with a price-to-earnings (P/E) ratio of 71.36 and a forward P/E of 34.60, indicating expectations of future growth. The price-to-book (P/B) ratio of 8.27 and price-to-sales (P/S) ratio of 8.57 highlight the company’s premium valuation relative to its assets and revenue.

For investors and fund managers, HMS Networks represents a play on the growing demand for industrial connectivity and IIoT solutions. The company’s comprehensive product range, strong market position, and focus on innovation make it a key player in enabling the digital transformation of industries. However, the high valuation multiples suggest that investors should carefully consider the company’s growth prospects and competitive positioning in the market.