AAK AB (AAK) AI Stock Analysis

• Market Cap: kr64.53B
• Dividend Yield: 2.01%
• Average Volume (3M): 390.78K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.29
• Revenue Growth: 1.96%
• EPS Growth: 9.88%
• Country: SE
• Employees: 4,000
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Packaged Foods
• EPS (TTM): 3.59
• Shares Outstanding: 259,559,200
• 10 Day Avg. Volume: 372,356
• 30 Day Avg. Volume: 390,782
• 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: kr291.40
• Price Target Upside: 17.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 63 Neutral
• Price Target: kr266.00 ▲(7.00%Upside)

AAK AB's overall stock score is influenced by strong profitability and a conservative financial position, counterbalanced by cash flow challenges and a bearish technical trend. The valuation is moderate, providing neither a significant discount nor premium.

AAK AB Business Overview & Revenue Model

Company Description

AAK AB is a leading provider of value-adding vegetable oils and fats. With operations spanning across various sectors such as food, confectionery, dairy, bakery, and personal care industries, AAK specializes in the production and development of high-quality, sustainable oils and fats solutions. The company's core products include plant-based oils and fats tailored for different industrial applications, catering to the needs of manufacturers seeking efficient and innovative ingredient solutions.

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
EBITDA	5.79B	5.76B	4.99B	3.36B	2.82B	2.89B
Net Income	3.54B	3.54B	2.95B	1.77B	1.44B	1.56B
Balance Sheet
Total Assets	32.09B	34.39B	30.55B	33.99B	27.17B	22.28B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.91B	1.50B	1.51B	1.00B	1.20B
Total Debt	3.67B	3.57B	4.49B	7.25B	4.57B	4.39B
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: Negative
• Last Price: 248.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 248.6 is below the 20-day moving average (MA) of 256.54, below the 50-day MA of 255.77, and below the 200-day MA of 287.32, indicating a bearish trend. The MACD of -2.35 indicates Positive momentum. The RSI at 41.30 is Neutral, neither overbought nor oversold. The STOCH value of 54.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:AAK.

AAK AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOL	74 Outperform	kr86.35B	7.40	17.43%	2.53%	19.17%	136.96%
SSAB.A	67 Neutral	kr58.41B	11.65	7.27%	42.31%	-11.28%	-56.26%
SCA.A	67 Neutral	kr86.25B	23.63		2.44%	16.88%	12.52%
SCA.B	65 Neutral	kr86.71B	24.42	3.50%	2.43%	16.88%	12.52%
AAK	63 Neutral	kr64.53B	18.25	18.38%	2.01%	1.96%	9.88%
Sector *	62 Neutral	$10.21B	10.03	-0.16%	2.84%	2.22%	-32.59%
BILL	59 Neutral	kr23.96B	12.98	6.58%	3.63%	9.83%	1070.42%

AAK AB Corporate Events

AAK AB to Discuss Q2 2025 Interim Report in Upcoming Conference Call

AAK AB announced an upcoming conference call for investors and analysts to discuss its second quarter 2025 interim report. The call, led by the company’s President and CEO Johan Westman and CFO Tomas Bergendahl, will provide insights into the company’s performance and strategic direction. The report and presentation materials will be available on the company’s website following the call.

The most recent analyst rating on (SE:AAK) stock is a Hold with a SEK275.00 price target. To see the full list of analyst forecasts on AAK AB stock, see the SE:AAK Stock Forecast page.

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.