Why Trifork Group’s Buyback Strategy Makes It a Hidden Gem in Tech Investing

Trifork Group AG (NASDAQ: TRIF), a leading European IT solutions provider, has quietly been executing one of the most shareholder-friendly capital allocation strategies in the tech sector. Since March 2025, the company’s share buyback program has combined strategic dilution reduction, management alignment, and value accretion to create a compelling investment thesis. Here’s why investors should pay attention—and act now.

The Buyback: A Signal of Confidence and Discipline

Trifork’s buyback program, launched in March 2025 with an allocation of DKK 14.92 million (EUR 2 million), is not merely a routine corporate action. It’s a deliberate move to reduce equity dilution from incentive programs and enhance earnings per share (EPS). By mid-May , the company had repurchased 88,874 shares, representing 0.45% of its total share capital, with 51.6% of the budget already deployed.

This consistent activity—averaging ~1,300 shares daily in May—sends a clear message: management believes the stock is undervalued. The buybacks are executed under strict EU Market Abuse Regulation (MAR) guidelines, including a scheduled pause during its Annual General Meeting (AGM) in April, demonstrating regulatory compliance and operational discipline.

Reducing Dilution: A Double Win for Shareholders

The buyback’s most compelling feature is its use to offset equity-based compensation, aligning executive interests with shareholders. In March and April 2025, Trifork used repurchased shares to:
- Replace cash salaries for top executives with share-based payments, reducing cash outflow and dilution.
- Fund Restricted Stock Unit (RSU) plans, ensuring employees’ incentives are tied to long-term value creation.

By using treasury shares for these programs, Trifork avoids issuing new shares, which would dilute existing shareholders. This is a rare strategic move in tech, where equity dilution often accompanies growth initiatives.

EPS Boost and Undervaluation: The Math Speaks

The buyback’s impact on EPS is already material. With 19.4 million outstanding shares post-buybacks (down from ~19.7 million), every DKK 1 of profit now translates to 0.16% higher EPS compared to pre-buyback levels. This leverage effect grows as the program continues.

Meanwhile, Trifork’s Q1 2025 interim report highlighted strong execution in strategic verticals:
- Oman Healthcare: Secured a multi-year IT infrastructure contract.
- Denmark’s Digital Identity Wallet: Won a national project to digitize citizen services.

Yet the stock price has yet to fully reflect this progress. shows a 12% underperformance against peers, despite outpacing them in buyback activity and strategic wins.

Why Act Now? Three Compelling Catalysts

1. Reduced Share Count: With 1.6% of shares now in treasury, further buybacks will amplify EPS growth. The remaining DKK 7.2 million budget could retire another ~80,000 shares, pushing the total to ~1.8% of capital by June.
2. Strategic Execution Momentum: The Oman and Denmark projects signal scalability in high-margin public sector IT, a market Trifork dominates with 16-country operations.
3. Undervalued at Current Levels: At DKK 92.74/share (as of May 16), the stock trades at a 14.5x P/E ratio, below its five-year average of 16x. The buyback’s accretive effect could narrow this gap.

The Risk-Adjusted Case for Immediate Action

Trifork’s buyback program is a low-risk, high-reward catalyst for investors. The company:
- Maintains ample liquidity, with no debt and a strong cash position.
- Operates in defensive sectors (healthcare IT, public services), insulated from tech cyclicality.
- Has a clear path to share count reduction, with regulatory clarity and a disciplined execution track record.

With 51.6% of the buyback budget still unused, investors have time to enter—but not too much. As Trifork’s strategic wins gain visibility and the EPS accretion becomes undeniable, this hidden gem could quickly become a mainstream favorite.

Final Take: Buy Before the Crowd Catches On

Trifork Group’s buyback program isn’t just about buying shares—it’s about reinventing shareholder value. With reduced dilution, aligned management incentives, and undervalued stock, this is a rare opportunity to invest in a company that’s writing its own playbook for capital efficiency.

Act now before the EPS boost and strategic wins fuel a rerating. Trifork isn’t just surviving—it’s positioning itself to lead in a fragmented IT services market. The buyback math works; the question is, will you be part of it?