AAK AB (AAK) AI Stock Analysis

• Market Cap: kr70.34B
• Dividend Yield: 1.83%
• Average Volume (3M): 379.91K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.30
• Revenue Growth: 3.00%
• EPS Growth: -1.26%
• Country: SE
• Employees: 4,000
• Sector: Consumer Defensive
• Sector Strength: 47
• Industry: Packaged Foods
• EPS (TTM): 2.47
• Shares Outstanding: 259,559,200
• 10 Day Avg. Volume: 348,441
• 30 Day Avg. Volume: 379,908
• 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: kr292.80
• Price Target Upside: 7.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: kr279.00 ▲(2.88% Upside)

AAK AB's strong financial performance, characterized by stable profitability and a solid balance sheet, is the primary driver of its score. The technical analysis suggests a neutral outlook, while the valuation indicates fair pricing. The absence of recent earnings call insights or notable corporate events limits additional context.

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 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 shows strong profitability with healthy margins and a conservative leverage strategy. However, challenges in cash flow, particularly negative free cash flow, present risks that need to be addressed.

Income Statement

AAK AB shows a stable revenue base with Total Revenue of 45,677 million SEK in TTM (Trailing-Twelve-Months). The Gross Profit Margin is strong at 23.9%, though there is a slight decline compared to previous periods. The Net Profit Margin stands at 7.7%, indicating a solid profitability level. Revenue growth has been inconsistent, with some periods showing declines, but the company has managed to maintain good profitability margins overall. The EBIT and EBITDA Margins are healthy at 10.7% and 12.7%, respectively, highlighting effective cost management.

Balance Sheet

The company's Debt-to-Equity Ratio is 0.19, reflecting a conservative leverage approach, which is favorable. Return on Equity (ROE) is robust at 18.2%, indicating efficient use of equity capital. The Equity Ratio stands at a solid 60.7%, showcasing a strong equity position relative to assets. Overall, the balance sheet reflects financial stability, but attention should be given to maintaining equity strength amidst fluctuating revenues.

Cash Flow

AAK AB's cash flow performance presents challenges. The Operating Cash Flow to Net Income Ratio is low at 0.32, suggesting potential cash conversion issues. Free Cash Flow has dropped to negative territory in the TTM (Trailing-Twelve-Months) at -110 million SEK, indicating pressure on liquidity. Despite these challenges, previous positive Free Cash Flow years provide some cushion, but continued negative trends could pose risks.

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: Positive
• Last Price: 271.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AAK, the sentiment is Positive. The current price of 271.2 is above the 20-day moving average (MA) of 259.60, above the 50-day MA of 255.55, and below the 200-day MA of 276.22, indicating a neutral trend. The MACD of 5.13 indicates Negative momentum. The RSI at 66.25 is Neutral, neither overbought nor oversold. The STOCH value of 81.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:AAK.

AAK AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAK	68 Neutral	kr70.34B	20.88	18.43%	1.83%	3.00%	-1.26%
Sector *	63 Neutral	$20.42B	14.38	-3.63%	3.17%	2.07%	-6.17%
0R6R	―	kr64.41B	30.38	34.34%	―	―	―
CLOEF	―	$998.78M	15.99	11.94%	3.81%	―	―
ZNZNF	―	$785.99M	43.54	46.78%	1.95%	―	―
6MA	―	€989.10M	18.95	12.76%	―	―	―
SCST	66 Neutral	kr6.30B	22.20		2.48%	4.70%	0.33%

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.