AAK AB (AAK) AI Stock Analysis

• Market Cap: kr68.94B
• Dividend Yield: 1.88%
• Average Volume (3M): 452.22K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.25
• Revenue Growth: 1.96%
• EPS Growth: 9.88%
• Country: SE
• Employees: 4,000
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Packaged Foods
• EPS (TTM): 3.59
• Shares Outstanding: 259,559,200
• 10 Day Avg. Volume: 397,321
• 30 Day Avg. Volume: 452,223
• PEG Ratio: N/A
• Price to Book (P/B): 3.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -595.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr293.75
• Price Target Upside: 10.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: kr294.00 ▲(10.69%Upside)

The overall score of 70 reflects AAK AB's strong financial stability and promising technical indicators, tempered by concerns over cash flow management. The company's valuation is fair, but liquidity issues could impact future performance if not addressed.

AAK AB Business Overview & Revenue Model

Company Description

AAK AB (publ.) develops and sells plant-based oils and fats worldwide. It offers food ingredients for the bakery, dairy, foodservice, and special nutrition industries; chocolate and confectionery, including cocoa butter alternatives, compound fats, filling fats, barrier fats, and spreads; caramel products; and functional emollients for the cosmetics industry. The company also provides fatty acids and glycerine for various applications; candle waxes; feed products; and natural emulsifiers. AAK AB (publ.) was founded in 1871 and is headquartered in Malmö, Sweden.

How the Company Makes Money

AAK AB generates revenue primarily through the sale of its vegetable oils and fats, which are used as ingredients across multiple industries. The company's key revenue streams include contracts and agreements with manufacturers in the food, confectionery, bakery, and personal care sectors. AAK adds value by customizing its products to meet specific client requirements, thus commanding premium pricing. The company often enters into strategic partnerships and collaborations to enhance its product offerings and expand market reach. Factors such as innovation in product development, sustainability practices, and a global distribution network significantly contribute to AAK's earnings.

AAK AB Financial Statement Overview

Summary

AAK AB exhibits a strong financial position with excellent profitability margins and a stable balance sheet. Despite a slight decline in revenue, the company maintains efficient operations and low leverage. However, cash flow challenges, particularly in free cash flow generation, may require strategic adjustments to sustain long-term growth. Overall, AAK AB is well-positioned within the Consumer Products - Foods industry, but should focus on reversing the revenue decline and improving cash flow efficiency.

Income Statement

AAK AB has demonstrated strong financial performance over the years, with notable improvements in gross profit margin and net income. The gross profit margin increased to 28.85% from 25.49% the previous year, and the net profit margin improved to 7.85% from 6.40%. However, total revenue has decreased by 2.12% compared to the previous year, signaling a potential area of concern for future growth. EBIT and EBITDA margins are strong at 10.87% and 13.00%, respectively.

Balance Sheet

The company's balance sheet reveals a healthy equity position, with a debt-to-equity ratio of 0.18, indicating low leverage. Stockholders' equity has grown consistently, reflecting a stable financial structure. Return on equity stands at 17.61%, showcasing efficient use of equity capital. The equity ratio remains robust at 58.44%, underscoring financial stability. However, the overall asset base has seen moderate growth, which could limit future expansion opportunities.

Cash Flow

AAK AB's cash flow performance indicates moderate growth potential. The free cash flow has decreased significantly from the previous year, with a free cash flow to net income ratio of 0.31, down from 1.38. Operating cash flow is strong at 2,352 million, but free cash flow growth has been negative, suggesting potential challenges in generating cash from operations. The operating cash flow to net income ratio is 0.67, indicating reasonable operational efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
45.68B	45.05B	46.03B	50.42B	35.45B	27.93B
	Gross Profit
10.92B	13.00B	11.73B	9.76B	7.75B	7.36B
	EBIT
4.87B	4.90B	4.12B	2.54B	2.09B	2.17B
	EBITDA
5.79B	5.76B	4.99B	3.36B	2.82B	2.89B
	Net Income Common Stockholders
3.54B	3.54B	2.95B	1.77B	1.44B	1.56B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.22B	1.91B	1.50B	1.51B	1.00B	1.20B
	Total Assets
32.09B	34.39B	30.55B	33.99B	27.17B	22.28B
	Total Debt
3.67B	3.57B	4.49B	7.25B	4.57B	4.39B
	Net Debt
2.45B	1.66B	2.98B	5.73B	3.56B	3.19B
	Total Liabilities
12.54B	14.24B	13.38B	18.91B	15.34B	12.54B
	Stockholders Equity
19.49B	20.09B	17.12B	15.04B	11.78B	9.70B
Cash Flow		Free Cash Flow
-110.00M	1.11B	4.07B	-1.30B	-111.00M	1.28B
	Operating Cash Flow
1.14B	2.35B	5.31B	-73.00M	508.00M	2.02B
	Investing Cash Flow
-606.00M	-598.00M	-1.20B	-1.23B	-650.00M	-1.15B
	Financing Cash Flow
-547.00M	-1.33B	-4.06B	1.79B	-65.00M	-570.00M

AAK AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 265.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AAK, the sentiment is Neutral. The current price of 265.6 is above the 20-day moving average (MA) of 263.86, above the 50-day MA of 260.52, and below the 200-day MA of 292.34, indicating a neutral trend. The MACD of 2.58 indicates Negative momentum. The RSI at 54.37 is Neutral, neither overbought nor oversold. The STOCH value of 45.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:AAK.

AAK AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAK	70 Outperform	kr68.94B	19.50	18.38%	1.88%	1.96%	9.88%
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%
0GWS		kr26.34B	14.29	6.58%	3.29%	―	―
0YAL		kr86.15B	7.36	17.43%	2.53%	―	―
0KII		kr57.89B	11.78	7.27%	4.34%	―	―
0MCK		kr88.75B	24.60	3.50%	2.35%	―	―
SCA1		€8.09B	―		―	―	―

AAK AB Corporate Events

AAK AB Announces Board Re-elections and New Incentive Program at AGM

AAK AB’s Annual General Meeting on May 8, 2025, resulted in the re-election of its Board of Directors and the approval of a SEK 5.00 per share dividend. The meeting also approved a new long-term incentive program for senior executives, aimed at aligning performance with shareholder value, and authorized the Board to issue new shares and repurchase existing ones to support strategic growth and capital management.