Fortnox AB (FNOX) stock price has continued its remarkable bull run, stunning investors and analysts. It has surged to a record high of SEK 80, valuing the fintech company at over $4 billion, making it one of Sweden’s most valuable companies.

Fortnox is a fintech company that offers accounting solutions to thousands of companies in Sweden. In this regard, it competes with some of the top accounting software companies in the world like Sage, Xero, Freshbooks, and Quickbooks.

Fortnox stock price has been in a strong uptrend for a long time. According to TradingView, the stock has jumped by more than 143% from its lowest point in 2022. 

Its valuation metrics are substantially higher than some of the best-known tech companies like Nvidia and Super Micro Computer. It has a price-to-forward sales of 23, higher than Nvidia’s 20. SMCI has a forward P/S multiple of 4 while Microsoft has 12.86.

Fortnox’s stock surge gained momentum after it published strong financial results in February. Its total sales rose to SEK 451 million, a 26% increase from the same quarter in 2022. Its operating profit rose to SEK 186 million while the profit after tax rose to SEK 188. 

For the year, the company’s revenue jumped to SEK 1.6 billion while its profit after tax came in at SEK 570 million. In dollar terms, its profit came in at $53 million while its revenue stood at over $151 million. 

The other big concern for Fortnox is its total addressable market (TAM). In the past, Fortnox noted that the company was targeting 800k customers in Sweden. It has now boosted its TAM to 1.5 million, comprising of all companies in the country. In a recent note, an analyst said this about Fortnox.

FNOX chart by TradingView

The weekly chart shows that the FNOX share price has staged a strong bullish trend in the past few years. It is now sitting at its highest level on record. Most recently, the stock rose above the important resistance point at SEK 77.92, its highest point on May 8th. It has now invalidated the double-top pattern. 

Fortnox share price has remained above the 50-week and 100-week Exponential Moving Averages (EMA). The Average Directional Index (ADX) has risen to 25, its highest point since November last year. 

Therefore, while the stock may have some more upside, there is a likelihood that it could retreat because of the double-top pattern. If this happens, it will likely retreat to the support at SEK 70.

The post Fortnox stock price: Swedish fintech forms a risky pattern appeared first on Invezz