LIND RESEARCH
Research Comment | Premium Equity Research
Value Creative Buyback Program Announced
Physitrack (PTRK) just announced the intention to implement a share buyback program. We believe this is a firm signal from the company that they both view the current valuation as attractive and that they are confident in their improving cash flow-generating capabilities.
From the company:
Henrik Molin, CEO and co-founder, commented:
“Physitrack exits 2025 with materially improved cash generation, stronger margins and a more focused operating model. Establishing a share buyback framework reflects the Board’s confidence in the business and its commitment to disciplined capital allocation. We view buybacks, like dividends, as a legitimate shareholder value tool. This program provides flexibility to optimise our capital structure while continuing to invest in growth.”
PTRK is listed on Nasdaq First North, which is an MTF. Where regular buybacks are not allowed but possible through a synthetic and banking partner structure. But the rules for an MTF-listed company to do buybacks are expected to change by early December 2026. We do not know if PTRK wants to take the synthetic route or wait for the new rules to come into effect.
Either way, this is a strong signal, and the market seems to share our view, with the share price increasing by 14% as of this writing. We just recently released our buy memo on PTRK.
Buybacks are great, but only at a discount
For us, it’s great that the intention is there now. However, one must always take into account the share price relative to the underlying value when conducting buybacks. If the program starts in December and the share price is much higher than today's, it’s less certain that the buybacks create value. At current valuation levels, we believe buybacks are highly accretive. With the share trading well below our assessed intrinsic value range of 22 to 25 SEK, repurchasing shares represents an attractive deployment of excess cash, particularly as it is funded from operating cash flow and not additional debt.
Equally important, this announcement reduces the risk of idle cash accumulation or value-destructive acquisitions. It establishes capital return as a legitimate and ongoing tool, which in our view supports a re-rating over time.
The program remains subject to lender consent and market conditions, but assuming execution, we view this as a clear positive and a logical next step in PTRK’s transition toward profitable, cash-generative SaaS with owner-oriented capital discipline.
Disclaimer
This analysis represents the independent views of Lind Research and is based on publicly available information believed to be reliable, but no warranty is given as to its accuracy or completeness. Nothing herein is investment advice or a recommendation. We publish openly, and companies do not influence our conclusions. Lind Research may hold positions in securities discussed.
Analyst owns shares? Yes
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