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Sinch AB (publ)

SINCH.ST
38
Software - Services · Technology
Price
kr 45.18
+1.21 (+2.75%)
Market Cap
kr 31.74B
Exchange
Stockholm Stock Exchange
Winston Score
38
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Mixed
Cash Flow
Strong
Stability
Weak
Valuation
Good

Share count rising — dilution

+16.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 716.5M (2021) → 834.6M (2025)

Winston Score History

The full picture

Sinch is a Swedish technology company that helps other businesses send text messages, make phone calls, and deliver emails to their customers through software. Its main products include messaging APIs, voice calling tools, and email delivery services, used by companies like banks, retailers, and app developers who need to reach millions of people quickly. Sinch operates in the "cloud communications" industry and is one of the larger players globally in business-to-person messaging.

Sinch makes money by charging businesses per message sent, per minute of voice traffic, or through software subscriptions for its communication platforms. The company operates across North America, Europe, Latin America, and Asia, and has grown largely through acquisitions, giving it a broad network of carrier connections that is difficult for smaller rivals to replicate quickly. A key risk is that its low operating and return margins leave little room for error, and the company must improve profitability while managing the debt taken on from past deals.

Score breakdown

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Quality

Profit per sale
Gross Margin
35.3%
Modest — 35.3% gross margin
Profit after running costs
Operating Margin
3.8%
Thin — 3.8% operating margin
Return on the money invested
ROCE
5.2%
Weak — 5.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-6.2%
Shrinking sales (-6.2% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
603%
Turns 603% of profit into real cash
Spare cash per sale
FCF Margin
8.1%
Modest free cash flow (8.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
0.71x
Dangerous — barely covers interest (0.7x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit
P/E Ratio (TTM)
74.3x
Expensive — P/E 74.3

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+61.7
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (74.3 → 12.7)

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Dividends

Not applicable for this business.
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