cBrain A/S (CBRAIN.CO) | Investment Case

1. Company Snapshot

1.a. Company Description

cBrain A/S, a software company, develops and provides software solutions for government, private, education, and non-profit sectors in Denmark and internationally.The company offers F2 Digital Platform, an integrated software solution that combines case management, process management, and knowledge management, including full support for specialized government routines and compliance.It also provides F2 platform for automation of the public administration; and Government Climate Software.

The company was founded in 2002 and is headquartered in Copenhagen, Denmark.

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1.b. Last Insights on CBRAIN

cBrain A/S faces challenges due to postponed government procurements, leading to a 5% decline in revenue for the first half of 2025 compared to the same period in 2024. The company has lowered its revenue growth expectations for 2025 to 0-5%, citing a decline in one-time software license sales. However, cBrain has upgraded its expected EBT to 24-27%. Recent contract wins, including a national F2-based grant management system for the Danish Secretariat for Competence Development, demonstrate the company's continued market traction.

1.c. Company Highlights

Last Price	140
Change Percentage	-1.27%
Open	141.4
Previous Close	141.8
Market Cap ( Millions)	2739
Volume	60115
Year High	238
Year Low	132.8
M A 50	164.21
M A 200	180.39

FCF Yield	2.48%
Dividend Yield	0.46%
ROE	19.41%
Debt / Equity	16.55%
Net Debt / EBIDTA	21.22%
Price To Book	9.33
Price Earnings Ratio	49.01
Price To FCF	40.33
Price To sales	10.5
EV / EBITDA	29.32

2. Transcript Summary

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3. NewsRoom

3 European Stocks That May Be Trading Below Intrinsic Value By Up To 26.7%

Nov -24

Source:

Building on strong results – preparing for the next growth cycle

Nov -05

Source:

cBrain lower revenue growth expectations for the year 2025 to 0-5%, while upgrading expected EBT to 24-27%

Oct -23

Source:

cBrain wins public tender to deliver national F2 based grant management system for the Danish Secretariat for Competence Development

Oct -17

Source:

Aarhus City to implement cBrain F2® as new digital platform

Oct -06

Source:

Aarhus Municipality intends to award cBrain® a contract

Sep -18

Source:

cBrain supports Denmark’s largest-ever reforestation grant program with digital platform fully integrated with GIS

Sep -17

Source:

cBrain® advances global growth strategy, maintaining long-term focus

Aug -21

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.06%)

6. Segments

Software

Expected Growth: 12.53%

cBrain A/S's software growth is driven by increasing demand for digital transformation, cloud adoption, and automation in the public sector. The company's expertise in low-code development and its flexible platform resonate with government agencies seeking to modernize their operations. Additionally, strategic partnerships and expanding sales channels contribute to the 12.53% growth.

Services

Expected Growth: 10.27%

cBrain A/S's 10.27% growth in services is driven by increasing demand for digital transformation, cloud-based solutions, and automation. The company's expertise in low-code development and its flexible pricing model have attracted new clients. Additionally, strategic partnerships and expansion into new markets have contributed to the growth.

7. Detailed Products

F2

F2 is a low-code platform that enables organizations to build custom applications and automate business processes. It provides a visual interface for designing and building workflows, forms, and reports.

cBrain F2 Apps

cBrain F2 Apps are pre-built applications that provide solutions for specific business needs, such as case management, document management, and project management.

cBrain F2 Integration

cBrain F2 Integration provides a set of tools and APIs for integrating F2 with other systems, such as ERP, CRM, and legacy systems.

cBrain F2 Analytics

cBrain F2 Analytics provides real-time insights and analytics capabilities for F2 applications, enabling data-driven decision-making.

cBrain F2 Mobile

cBrain F2 Mobile provides a mobile app for F2, enabling users to access F2 applications and workflows on-the-go.

cBrain F2 Cloud

cBrain F2 Cloud provides a cloud-based deployment option for F2, offering scalability, security, and reliability.

8. cBrain A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

cBrain A/S operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

cBrain A/S has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are highly customized, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

cBrain A/S relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate favorable terms mitigate this risk.

Threat Of New Entrants

The barriers to entry in cBrain A/S's market are relatively high, including significant capital requirements and the need for specialized expertise. This makes it difficult for new entrants to gain a foothold in the market.

Intensity Of Rivalry

The market in which cBrain A/S operates is highly competitive, with several established players vying for market share. The company must continually innovate and improve its products and services to maintain its competitive edge.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	18.12%
Debt Cost	11.55%
Equity Weight	81.88%
Equity Cost	11.58%
WACC	11.57%
Leverage	22.13%

11. Quality Control: cBrain A/S passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Shoper

A-Score: 5.3/10

Value: 0.9

Growth: 9.4

Quality: 8.1

Yield: 1.9

Momentum: 7.5

Volatility: 4.0

1-Year Total Return ->

LTG

A-Score: 5.2/10

Value: 5.1

Growth: 9.3

Quality: 5.3

Yield: 1.2

Momentum: 6.0

Volatility: 4.3

1-Year Total Return ->

TXT

A-Score: 4.8/10

Value: 3.7

Growth: 9.1

Quality: 3.9

Yield: 1.2

Momentum: 6.5

Volatility: 4.3

1-Year Total Return ->

Truecaller

A-Score: 4.5/10

Value: 2.9

Growth: 6.3

Quality: 8.8

Yield: 4.4

Momentum: 3.5

Volatility: 1.3

1-Year Total Return ->

cBrain

A-Score: 3.6/10

Value: 0.0

Growth: 8.7

Quality: 7.7

Yield: 0.6

Momentum: 3.5

Volatility: 1.0

1-Year Total Return ->

NCC Group

A-Score: 3.4/10

Value: 4.5

Growth: 2.0

Quality: 2.6

Yield: 4.4

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

27.32%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.57%

cBrain A/S - DK0060030286

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CBRAIN

1.c. Company Highlights

Higher Growth

Expensive

Strong Momentum

Better Quality

Revenues Miss

Earnings Miss

Revenues Beats

Earnings Beats

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.06%)

6. Segments

Software

Expected Growth: 12.53%

Services

Expected Growth: 10.27%

7. Detailed Products

F2

cBrain F2 Apps

cBrain F2 Integration

cBrain F2 Analytics

cBrain F2 Mobile

cBrain F2 Cloud

8. cBrain A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: cBrain A/S passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

140.0$

Current Price

140$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA