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Electrolux AB Class B (ELUXY)
:ELUXY

Electrolux AB (ELUXY) AI Stock Analysis

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Electrolux AB

(OTC:ELUXY)

Rating:55Neutral
Price Target:
$14.00
▲(3.02%Upside)
The overall stock score of 55 reflects a mixed outlook for Electrolux. While the company demonstrated robust organic growth and operational improvements, financial performance remains a concern due to high leverage and negative cash flow. The technical analysis indicates potential market volatility, and valuation metrics are weak due to recent losses.

Electrolux AB (ELUXY) vs. SPDR S&P 500 ETF (SPY)

Electrolux AB Business Overview & Revenue Model

Company DescriptionAB Electrolux (publ), together with its subsidiaries, manufactures and sells household appliances in Europe, North America, Latin America, the Asia/Pacific, the Middle East, and Africa. The company offers various appliances, such as refrigerators, freezers, cookers, dryers, washing machines, dishwashers, room air-conditioners, microwave ovens, floor-care products, vacuum cleaners, water heaters, heat pumps, and other small domestic appliances, as well as consumables and accessories. It also provides hobs, ovens, and hoods; and tumble dryers. The company offers its products under the Electrolux, AEG, and Frigidaire brands through retailers, buying groups, and independent stores. AB Electrolux (publ) was founded in 1901 and is headquartered in Stockholm, Sweden.
How the Company Makes MoneyElectrolux AB generates revenue primarily through the sale of household and professional appliances. The company's revenue model is centered around manufacturing and distributing a diverse range of products that cater to different consumer and business needs across multiple regions. Key revenue streams include sales from major appliances like refrigerators, ovens, and washing machines, as well as small appliances and professional products used in sectors such as hospitality and healthcare. Electrolux also benefits from significant partnerships and collaborations with retailers and distributors worldwide, which help in expanding its market reach. Additionally, the company invests in research and development to innovate and improve its product offerings, thereby maintaining its competitive edge and driving sales growth.

Electrolux AB Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: -11.23%|
Next Earnings Date:Jul 18, 2025
Earnings Call Sentiment Neutral
Electrolux showed strong organic growth and margin improvements, supported by cost efficiencies and innovation, particularly in North America and sustainability efforts. However, challenges such as currency devaluation in Brazil, a sluggish European market, negative cash flow, and tariff pressures in North America indicate a mixed performance outlook.
Q1-2025 Updates
Positive Updates
Strong Organic Growth
Electrolux achieved a solid organic growth of 7.9%, led by strong performance in North and Latin America.
Operating Margin Improvement
Operating margin improved to 1.4%, with a year-over-year improvement of SEK 1.2 billion.
Cost Efficiency Success
The company achieved SEK 1.4 billion in cost savings in Q1 2025, contributing positively to operating margins.
North America Growth
North America experienced 12.2% organic growth, driven by product launches in the premium segment.
Sustainability Leadership
Electrolux was recognized by Financial Times as a leader in sustainability, with significant reductions in scope 1, 2, and 3 emissions.
Innovation in Europe
Launch of a new AI-assisted cooking range in Europe, focusing on energy efficiency and consumer relevance.
Negative Updates
Impact of Brazilian Real Devaluation
The devaluation of the Brazilian real affected Latin American operations, requiring immediate price increases.
Subdued European Market
The European market remained largely replacement-driven with high promotional intensity, affecting price dynamics negatively.
Cash Flow Challenges
Cash flow after investments was negative SEK 3.1 billion due to higher seasonal outflows and operating working capital.
North American Consumer Confidence
Deterioration in consumer confidence observed in North America, with market demand remaining resilient but under pressure.
Tariff and Currency Headwinds
Tariffs and currency fluctuations posed significant external challenges, with a dampening effect on North American and Latin American markets.
Company Guidance
In the Q1 2025 earnings call, Electrolux Group reported a robust organic growth of 7.9%, leading to an operating margin of 1.4%, with a significant year-over-year EBIT improvement of SEK 1.2 billion. The company achieved SEK 1.4 billion in cost savings, contributing positively to the operating margin across all business areas. North America saw a noteworthy organic growth of 12.2%, driven by new product launches, while Latin America achieved a 16.3% growth despite currency challenges. The European market remained stable, with Electrolux outperforming the market with an organic growth of 1.2%. The company is on track to deliver SEK 3.5 billion to SEK 4 billion in cost efficiencies for the year, supported by a cost excellence program. Electrolux also maintains a solid liquidity position with SEK 29.5 billion, and a net debt-to-EBITDA ratio stabilized at 3.4 times. Despite geopolitical and economic uncertainties, the company anticipates positive EBIT contributions from pricing and mix improvements, especially in response to tariff and currency headwinds.

Electrolux AB Financial Statement Overview

Summary
Electrolux faces financial headwinds with consistent net losses and high leverage. While revenue growth is present, profitability remains elusive, and cash flow challenges persist, indicating the need for strategic improvements in operations and cost control.
Income Statement
50
Neutral
The company's revenue shows modest growth in the TTM period, with a slight increase from the previous year. However, profitability metrics are concerning, as both EBIT and net income have been negative in recent years, indicating challenges in cost management and operational efficiency. Margins remain under pressure.
Balance Sheet
45
Neutral
Electrolux's balance sheet reflects high leverage, with a debt-to-equity ratio indicating substantial reliance on debt financing. The equity ratio is relatively low, suggesting limited financial cushion. However, liquidity remains reasonable with a significant amount of cash on hand.
Cash Flow
40
Negative
Cash flow from operations is positive, yet not sufficient to cover capital expenditures, resulting in negative free cash flow. This trend highlights potential cash constraints and challenges in funding growth without external financing.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
137.65B136.15B134.45B134.88B125.63B115.96B
Gross Profit
21.52B20.30B17.14B17.70B23.98B22.27B
EBIT
2.12B1.10B-2.99B-2.35B6.80B5.78B
EBITDA
8.42B7.67B3.22B5.29B11.31B10.42B
Net Income Common Stockholders
-123.00M-1.39B-5.23B-1.32B4.68B3.99B
Balance SheetCash, Cash Equivalents and Short-Term Investments
14.14B16.34B15.50B17.73B11.09B20.37B
Total Assets
101.66B125.39B120.05B127.10B107.61B99.60B
Total Debt
20.04B43.63B40.87B41.38B18.82B18.07B
Net Debt
6.08B27.46B25.54B23.82B7.90B-2.13B
Total Liabilities
83.22B115.67B108.78B110.65B89.00B80.89B
Stockholders Equity
18.43B9.72B11.27B16.44B18.60B18.70B
Cash FlowFree Cash Flow
-1.00B-451.00M-1.70B-9.66B1.02B6.59B
Operating Cash Flow
3.42B4.20B4.00B-2.27B7.06B11.93B
Investing Cash Flow
-3.83B-4.28B-4.36B-6.96B-6.82B-5.12B
Financing Cash Flow
-468.00M1.27B-1.55B15.60B-9.79B2.02B

Electrolux AB Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price13.59
Price Trends
50DMA
13.37
Positive
100DMA
15.43
Negative
200DMA
16.50
Negative
Market Momentum
MACD
0.10
Negative
RSI
52.71
Neutral
STOCH
68.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELUXY, the sentiment is Neutral. The current price of 13.59 is above the 20-day moving average (MA) of 13.12, above the 50-day MA of 13.37, and below the 200-day MA of 16.50, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 68.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ELUXY.

Electrolux AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
LZLZB
72
Outperform
$1.56B16.289.84%2.30%1.81%8.09%
71
Outperform
$3.00B21.4712.87%1.78%8.12%-5.17%
MHMHK
66
Neutral
$6.13B12.816.26%-2.95%
62
Neutral
$6.76B11.072.80%6.34%2.68%-24.87%
WHWHR
60
Neutral
$5.11B680.000.37%7.63%-18.43%-97.97%
MBMBC
59
Neutral
$1.26B12.838.02%1.30%-44.70%
55
Neutral
$1.85B-1.31%3.29%97.80%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ELUXY
Electrolux AB
13.59
-3.93
-22.43%
LZB
La-Z-Boy Incorporated
38.13
0.99
2.67%
MHK
Mohawk
99.53
-13.47
-11.92%
PATK
Patrick Industries
89.07
18.33
25.91%
WHR
Whirlpool
92.98
8.75
10.39%
MBC
MasterBrand Inc
10.19
-4.72
-31.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.