AAK AB (AAK) AI Stock Analysis

• Market Cap: kr66.08B
• Dividend Yield: 1.96%
• Average Volume (3M): 308.75K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.30
• Revenue Growth: 3.00%
• EPS Growth: -1.26%
• Country: SE
• Employees: 4,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 2.47
• Shares Outstanding: 259,559,200
• 10 Day Avg. Volume: 265,948
• 30 Day Avg. Volume: 308,751
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr296.25
• Price Target Upside: 17.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: kr288.00 ▲(14.01% Upside)

AAK AB's overall stock score is driven by its strong financial performance and fair valuation. The company's profitability and solid balance sheet are significant strengths, though cash flow management remains a concern. Technical indicators suggest moderate momentum, supporting a balanced outlook.

AAK AB Business Overview & Revenue Model

Company Description

AAK AB (AAK) is a leading global producer of plant-based oils and fats, specializing in tailored solutions for various industries, including food, personal care, and pharmaceuticals. The company operates in the sectors of food ingredients, chocolate and confectionery, and technical products, offering a wide range of products such as vegetable oils, emulsifiers, and specialty fats. AAK is committed to sustainability and innovation, aiming to provide high-quality, value-added products that meet the evolving needs of its customers.

How the Company Makes Money

AAK generates revenue primarily through the sale of its specialized oils and fats products across different sectors. The company's revenue model is based on a combination of direct sales to food manufacturers, retail partners, and other industrial clients. Key revenue streams include food ingredients, which consist of oils and fats for baking, frying, and spreads; chocolate and confectionery solutions; and technical products for personal care and pharmaceuticals. AAK also benefits from long-term partnerships with major global brands, which provide a stable demand for its products. Additionally, the company focuses on innovation and product development, allowing it to capture new market opportunities and enhance its competitive advantage.

AAK AB Financial Statement Overview

Summary

AAK AB exhibits strong profitability with stable margins and a solid balance sheet, positioning it well within the packaged foods industry. 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	45.94B	45.05B	46.03B	50.42B	35.45B	27.93B
Gross Profit	12.81B	13.00B	11.73B	9.76B	7.75B	7.36B
EBITDA	5.64B	5.76B	4.99B	3.36B	2.82B	2.89B
Net Income	3.37B	3.54B	2.95B	1.77B	1.44B	1.56B
Balance Sheet
Total Assets	32.38B	34.39B	30.55B	33.99B	27.17B	22.28B
Cash, Cash Equivalents and Short-Term Investments	1.28B	1.91B	1.50B	1.51B	1.00B	1.20B
Total Debt	4.96B	3.57B	4.49B	7.25B	4.57B	4.39B
Total Liabilities	13.97B	14.24B	13.38B	18.91B	15.34B	12.54B
Stockholders Equity	18.34B	20.09B	17.12B	15.04B	11.78B	9.70B
Cash Flow
Free Cash Flow	-649.00M	1.11B	4.07B	-1.30B	-111.00M	1.28B
Operating Cash Flow	665.00M	2.35B	5.31B	-73.00M	508.00M	2.02B
Investing Cash Flow	-667.00M	-598.00M	-1.20B	-1.23B	-650.00M	-1.15B
Financing Cash Flow	-169.00M	-1.33B	-4.06B	1.79B	-65.00M	-570.00M

AAK AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 252.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 252.6 is below the 20-day moving average (MA) of 265.20, below the 50-day MA of 258.37, and below the 200-day MA of 274.99, indicating a bearish trend. The MACD of -1.38 indicates Positive momentum. The RSI at 35.95 is Neutral, neither overbought nor oversold. The STOCH value of 8.85 is Positive, 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
AXFO	75 Outperform	64.76B	30.53	34.02%	2.92%	5.39%	-11.37%
AMBEA	72 Outperform	10.51B	17.84	12.44%	1.66%	8.38%	21.07%
AAK	69 Neutral	kr66.08B	19.62	18.43%	1.96%	3.00%	-1.26%
CLA.B	67 Neutral	9.70B	14.59	12.16%	3.27%	1.61%	34.76%
SCST	65 Neutral	6.47B	22.80	10.53%	2.42%	4.70%	0.33%
ZZ.B	63 Neutral	5.55B	27.09	44.16%	2.61%	42.95%	6.06%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

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.