Lime Technologies

In one line: The only name in a 129-company Swedish universe that passes every quality and price test, trading 25% below its own four-year average.

A Nordic CRM software vendor, SEK 3.0bn, at 19.2× EV/EBIT and a 5.1% free cash flow yield.

The case is the consistency. Operating profit has risen every single year without exception:

That is +78% in four years with margins expanding rather than compressing. More telling is the incremental return: 40.9% on capital deployed over the window, comfortably above the headline ROIC, which means new money is earning more than the existing base. That is the signature of a business that is genuinely compounding rather than buying revenue. Trailing free cash flow of SEK 151.6m against SEK 159.7m of EBIT is 95% conversion, so the rising capex is not capitalised development flattering the profit line. Net debt is 0.54× EBITDA.

The most recent quarter delivered 10% ARR growth, 12% organic revenue growth and a 25.4% adjusted EBITDA margin.

What argues against it. ARR growth of 10% sits well below management's own medium-term target of above 18%, and they say so themselves. That gap is the entire debate: at 10%, 19× is fair rather than cheap, and the re-rating case requires acceleration. It is also a SEK 3.0bn company with three analysts covering it, competing in a category owned by Salesforce, HubSpot and Microsoft, under a chief executive who took the job in January 2026. Watch the recently acquired portal business — if Lime drifts toward roll-up behaviour, the incremental-ROIC test needs re-running.

What would change the verdict: two consecutive quarters of ARR growth below 8%, or cash conversion falling under 75%.