AAK AB (AAK) AI Stock Analysis

• Market Cap: kr70.41B
• Dividend Yield: 1.9%
• Average Volume (3M): 425.83K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.34
• Revenue Growth: 4.79%
• EPS Growth: -1.93%
• Country: SE
• Employees: 4,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 3.49
• Shares Outstanding: 259,629,200
• 10 Day Avg. Volume: 535,604
• 30 Day Avg. Volume: 425,826
• PEG Ratio: 1.15
• Price to Book (P/B): 4.08
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 74.00
• 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: kr295.50
• Price Target Upside: 13.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: kr289.00 ▲(10.81% Upside)

AAK AB's overall stock score is driven by strong profitability and a solid balance sheet, though cash flow challenges are a concern. The technical indicators show a positive trend, supporting the stock's stability. The valuation is moderate, with a reasonable P/E ratio and a modest dividend yield.

Positive Factors

Strong Profitability

Consistent profitability indicates effective cost management and pricing power, supporting long-term financial stability and growth potential.

Solid Balance Sheet

A low debt-to-equity ratio suggests conservative financial management, providing flexibility for future investments and resilience against economic downturns.

Revenue Growth

Strong revenue growth indicates successful market expansion and product demand, which can drive future earnings and shareholder value.

Negative Factors

Cash Flow Challenges

Cash flow challenges can limit the company's ability to invest in growth opportunities and meet financial obligations, posing a risk to long-term sustainability.

Declining Net Profit Margin

A declining net profit margin may indicate rising costs or pricing pressures, potentially affecting profitability and competitiveness over time.

Low Operating Cash Flow to Net Income Ratio

A low ratio suggests that earnings are not being efficiently converted into cash, which could impact liquidity and the ability to fund operations or growth initiatives.

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 generates revenue primarily through the sale of its specialized vegetable oils and fats across several market segments. The company's revenue model is built on long-term partnerships with customers, focusing on customized solutions that meet their specific requirements. Key revenue streams include the food segment, which encompasses bakery, dairy, and confectionery applications, and the technical segment, which includes products for personal care and industrial use. AAK also invests in research and development to innovate new products and improve existing ones, thereby enhancing customer loyalty and driving sales. Significant partnerships with global brands in food and cosmetics further bolster AAK's earnings, as they provide stable demand and opportunities for co-developing new products.

AAK AB Financial Statement Overview

Summary

AAK AB exhibits strong profitability and a solid balance sheet, with stable margins and low leverage. However, challenges in cash flow management, particularly the negative free cash flow, could pose risks if not addressed.

Income Statement

AAK AB demonstrates strong profitability with a consistent gross profit margin above 25% and a net profit margin around 7%. The company has shown resilience in revenue growth, recovering from a decline in 2023 to a positive growth rate in TTM. EBIT and EBITDA margins are stable, indicating efficient operations. However, the slight decline in gross profit margin from 2024 to TTM suggests potential cost pressures.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.27 in TTM, reflecting prudent financial management. Return on equity remains robust at approximately 17.7%, indicating effective use of equity capital. The equity ratio is healthy, suggesting a strong asset base. However, the increase in total debt from 2024 to TTM warrants monitoring.

Cash Flow

AAK AB's cash flow performance is mixed. While operating cash flow is positive, the free cash flow is negative in TTM, indicating potential cash management challenges. The free cash flow growth rate has improved significantly, but the negative free cash flow to net income ratio highlights cash flow volatility. The operating cash flow to net income ratio is low, suggesting limited cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.27B	45.05B	46.03B	50.42B	35.45B	27.93B
Gross Profit	10.76B	13.00B	11.73B	9.76B	7.75B	7.36B
EBITDA	5.70B	5.76B	4.99B	3.36B	3.05B	2.89B
Net Income	3.41B	3.54B	2.95B	1.77B	1.44B	1.56B
Balance Sheet
Total Assets	33.17B	34.39B	30.55B	33.99B	27.17B	22.28B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.91B	1.50B	1.51B	1.00B	1.20B
Total Debt	4.91B	3.57B	4.49B	7.25B	4.57B	4.39B
Total Liabilities	13.98B	14.24B	13.38B	18.91B	15.34B	12.54B
Stockholders Equity	19.12B	20.09B	17.12B	15.04B	11.78B	9.70B
Cash Flow
Free Cash Flow	-632.00M	1.11B	4.07B	-1.30B	-111.00M	1.28B
Operating Cash Flow	692.00M	2.35B	5.31B	-73.00M	508.00M	2.02B
Investing Cash Flow	-677.00M	-598.00M	-1.20B	-1.23B	-650.00M	-1.15B
Financing Cash Flow	309.00M	-1.33B	-4.06B	1.79B	-65.00M	-570.00M

AAK AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 260.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 260.8 is below the 20-day moving average (MA) of 265.21, below the 50-day MA of 261.10, and below the 200-day MA of 261.62, indicating a neutral trend. The MACD of 1.08 indicates Negative momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 50.86 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
CLA.B	73 Outperform	kr11.22B	15.47	12.72%	2.85%	0.81%	57.02%
ZZ.B	71 Outperform	kr6.14B	24.53	51.65%	2.39%	48.79%	38.02%
AXFO	69 Neutral	kr56.22B	26.40	31.10%	3.26%	6.28%	-10.08%
SCST	68 Neutral	kr6.36B	20.54	―	2.62%	7.37%	2.90%
AAK	67 Neutral	kr70.41B	20.65	18.20%	1.90%	4.79%	-1.93%
AMBEA	65 Neutral	€9.92B	16.84	13.39%	1.68%	10.83%	16.24%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

AAK AB Corporate Events

AAK AB Expands Shares and Votes Through Employee Incentive Program

AAK AB announced an increase in its total number of shares and votes by 446,800 as a result of its long-term incentive program for employees, known as the Warrants Program series 2022/2027. This change, which took place in November 2025, brings the total number of shares and votes to 260,076,002. The program reflects AAK’s commitment to employee engagement and could potentially enhance its market position by aligning employee interests with company growth.

AAK CEO Increases Shareholding, Signaling Confidence in Future

AAK AB’s President and CEO, Johan Westman, has increased his stake in the company by acquiring an additional 9,392 shares, bringing his total holdings to 73,000 shares. This acquisition is part of the company’s incentive program, which allows for the exercise of warrants, and has been duly reported to the Swedish Financial Supervisory Authority. This move could signal confidence in the company’s future prospects and may positively influence stakeholder perception.

AAK AB Announces Third Quarter 2025 Report Conference Call

AAK AB announced an upcoming conference call for investors and analysts to discuss its third-quarter 2025 interim report, scheduled for release on October 23, 2025. The call will be led by the company’s President and CEO, Johan Westman, and CFO, Tomas Bergendahl. This event highlights AAK’s commitment to transparency and engagement with stakeholders, providing insights into its financial performance and strategic direction.