In this fundamental analysis report, analysts Nils Arvidsson and Felix Burestedt take a closer look at
Formpipe Software AB, a Swedish software company specializing in document output
management as an add-on to ERP systems. Following the divestment of the Company’s public
sector operations, Formpipe is transitioning into a pure-play SaaS business with increased
scalability and recurring revenues. SaaS is forecast to account for 69.6% of net sales by 2027,
up from 32.1% in 2024, driving an Adj. EBIT margin expansion from 1.8% in 2025 to
17.6% by 2027. Formpipe now operates at the intersection of two structurally growing
markets, ERP and SaaS, benefiting from high switching costs and a scalable business model.
Based on an equally weighted DCF and peer valuation, a target price of SEK 36.5 is implied,
corresponding to an upside of 47.3%.
Investment Thesis
● Margin expansion from change in income mix.
● Top line growth driven by partnership with the fastest growing ERP system globally,
and consultant-led promotion.
● Asset-light model enhancing capital efficiency and FCF conversion.