Article by Yippee-Ki-Yay

Scandinavian Medical Solutions: Financial analysis and investment outlook

Buy signal | Private publication | 9 Nov 2025

Scandinavian Medical Solutions A/S: Decoding a Danish gem in the medical sector 🏥

Hello investors! Today, we're going to talk about a Danish company that is making waves in the medical sector: Scandinavian Medical Solutions A/S. So hang on tight, because we're going to take a close look at this company!

Who is Scandinavian Medical Solutions A/S?

Scandinavian Medical Solutions A/S (SMS to its friends) is a publicly traded Danish company operating in the medical solutions sector. Based in Denmark, this company has experienced explosive growth in recent years. To give you an idea, their turnover has gone from DKK 41.94 million in 2020 to... hold on tight... DKK 226.68 million in 2024! Yes, you read that right. We're talking about a fivefold increase in just four years. Not bad for a small Scandinavian company, right?

Detailed analysis: Let's get down to business 🔍

1. Turnover: 4.5/5 💰

Well, frankly, hats off! SMS is showing growth that would make any CAC 40 start-up blush.

  • 2020: DKK 41.94 million
  • 2021: DKK 71.63 million (+71%!)
  • 2022: DKK 110.53 million (+54%)
  • 2023: DKK 191.19 million (+73%)
  • 2024: DKK 226.68 million (+19%)

Growth is almost exponential until 2023, with a slight slowdown in 2024 (but still very respectable). This growth shows real commercial momentum and sustained demand for their products. I'm deducting just 0.5 points because the pace is slowing down a little, but frankly, it's still very solid.

2. Net profit: 3/5 📊

Now, this is a little more complicated. Net profit follows revenue growth, but with a few nuances:

  • 2020: DKK 4.51 million
  • 2021: DKK 8.15 million
  • 2022: DKK 11.37 million
  • 2023: DKK 12.22 million
  • 2024: DKK 7.78 million (Ouch!)

Houston, we have a problem! In 2024, despite rising turnover, net profit will fall by 36%. Why? Operating costs have skyrocketed (DKK 212.93 million compared to DKK 174.56 million in 2023). The company is investing heavily in its growth: +40% in sales/admin costs, doubling of depreciation... This is typical of an aggressive expansion phase. No need to panic, but it warrants monitoring.

3. Debt: 3.5/5 💳

Let's talk cash now. Total debt rose from almost zero in 2020 to DKK 39.24 million in 2024.

  • Total debt in 2024: DKK 39.24 million
  • Equity: DKK 82.48 million
  • Debt/equity ratio: approximately 48%

It's not catastrophic, but SMS is taking on debt to finance its growth. Capitalised leasing obligations represent DKK 13.35 million, and there is DKK 21.86 million in short-term debt. The cool thing? They generated DKK 18.15 million in cash from financing in 2024. So they're managing, but we need to make sure things don't get out of hand.

4. Return on equity (ROE): 3/5 📈

The ROE for 2024 is around 9.4% (7.78M / 82.48M). That's... average.
For comparison, the ROE for 2023 was 16.4% (12.22M / 74.45M). The drop is significant. An ROE of around 10% is not great in absolute terms, especially for a growing company. It shows that the company is using its equity less efficiently than before. Again, this is probably temporary and related to investments, but it weighs down the rating.

5. Market performance: 2.5/5 📉

With a share price of DKK 4.16 and a book value of DKK 2.99 per share (82.48 million / 27.5 million shares), the price-to-book ratio is 1.39. This is fairly reasonable.

The P/E ratio is around 14.7 (based on EPS of DKK 0.28). This is not excessive, but not cheap either for a company whose profits are falling. The market seems cautious, and frankly, I understand why. The valuation is reasonable but not exciting.

Overall average: 3.3/5

Overall conclusion 🎯

SMS is a company with incredible potential thanks to its spectacular revenue growth, but it is currently going through a period of digestion. It is investing heavily to support its expansion (PP&E rising from £13 million to £52 million in one year!), which is temporarily weighing on profitability.

This is typical of a fast-growing company: you sacrifice short-term margins to build the foundations for tomorrow. The risk? That the investments will not pay off. The opportunity? That SMS will become a major player in its sector.

Forecasts for 2025-2027 🔮

Extrapolating trends (with caution, of course):

2025-2026: Revenue growth of 15-20% per year → Revenue of around DKK 260-280 million in 2026 Net profit: Gradual recovery as investments bear fruit → DKK 10-12 million in 2026 Estimated share value:

  • 2026: DKK 5.50-6.50 (if profitability improves)
  • 2027: DKK 7.00-8.50 (if fully normalised)

These estimates assume that SMS succeeds in its growth strategy. If it fails, we could see DKK 3-3.50.

🎯 Conclusion: Go for it or not?

Final verdict: SMS is high risk/high reward. For investors with a strong stomach and a long-term vision. Not for the faint-hearted who check their portfolio 15 times a day! 😎

  • Signal : Buy
  • Budget/Investment : Low/Medium
  • Reinforcement required : No
  • Exposure : Medium
  • Horizon : 2 to 4 years
  • Potential profitability : +68% to +104%
  • Ref. ISIN code : DK0061675006