Absolent Air Care Group AB (ABSO) AI Stock Analysis

• Market Cap: kr2.22B
• Dividend Yield: 1.51%
• Average Volume (3M): 1.72K
• Price to Earnings (P/E): 31.7
• Beta (1Y): -0.11
• Revenue Growth: -8.97%
• EPS Growth: -31.59%
• Country: SE
• Employees: 479
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.74
• Shares Outstanding: 11,320,968
• 10 Day Avg. Volume: 1,327
• 30 Day Avg. Volume: 1,724
• PEG Ratio: -0.69
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 24.28
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 14.14
• Revenue Forecast (FY): kr1.32B

• Rating: 59 Neutral
• Price Target: kr207.00 ▼(-4.17% Downside)
• Action: Reiterated Date: 02/22/26
• Date: Action: Reiterated 02/22/26

The score is primarily driven by weakening recent financial performance (margin and cash flow deterioration) despite a strengthened balance sheet. Technicals add a neutral-to-slightly negative tilt (below key longer-term moving averages with negative MACD), while valuation is only moderately supportive given a ~24 P/E and a modest ~1.68% dividend yield.

Positive Factors

Balance-sheet strength

Absolent's materially reduced leverage and larger equity base improve long-term financial flexibility. Lower relative debt reduces interest burden and bankruptcy risk, helping fund capital expenditure, service-network investments or opportunistic M&A and better withstand cyclical downturns.

Positive cash generation

Consistent positive operating and free cash flow provides a durable source to support aftermarket inventory, service operations and routine capex. Even with weaker momentum, ongoing cash generation underpins the recurring revenue model and funds shareholder returns or reinvestment without heavy new borrowing.

Attractive product-level margins

High historical gross margins signal durable product economics and pricing power in industrial filtration. Strong product-level margins support profitable aftermarket consumables and service revenue, enabling resilient operating profitability and margin recovery opportunities when top-line growth resumes.

Negative Factors

Declining top-line

Almost 9% reported revenue contraction indicates softer demand for new filtration systems, which limits the future growth of higher-margin aftermarket and service revenue. Persistent top-line weakness constrains scale benefits and slows expansion of the installed base that drives recurring sales.

Margin compression

A material fall in net margin reduces retained earnings and free cash flow, weakening the firm's ability to reinvest in sales, R&D and service capacity. If margin pressure persists, the company faces tougher trade-offs between price competitiveness and maintaining long-term service quality.

Weaker cash conversion

Declining free cash flow and a lower cash-conversion rate limit internal funding for capex, working capital and strategic initiatives. Reduced cash buffers increase sensitivity to further earnings volatility and may force prioritization of near-term liquidity over longer-term growth investments.

Absolent Air Care Group AB Business Overview & Revenue Model

Company Description

Absolent Air Care Group AB (publ) designs, develops, sells, installs, and maintains air filtration solutions. Its air purification solutions are used to capture air pollutants in a range of industries, including aerospace, automotive, chemical, electronics, pharmaceutical, woodworking, and food industries as well as in power generation, dental laboratories, hotels, and restaurants. The company's commercial kitchen systems comprising airborne particles and gases, hoods, filtration technologies, and fire extinguishing systems. It offers its products under the Absolent, Filtermist, Avani Environmental, Dustcheck, Diversitech, Kerstar, Aerofil, Airmaid, Jeven, Tessu Systems, and Quatro brands. The company serves in Sweden, the United Kingdom, Canada, China, the United States of America, Germany, the Netherlands, Finland, France, Estonia, India, Switzerland, Japan, Hong Kong, Italy, and Norway. The company was formerly known as Absolent Group AB (publ) and changed its name to Absolent Air Care Group AB (publ) in May 2021. The company was founded in 1993 is headquartered in Göteborg, Sweden. Absolent Air Care Group AB (publ) is a subsidiary of Mexab Industri AB.

How the Company Makes Money

Absolent Air Care Group AB generates revenue through the sale of its air filtration and purification products, which include both standard and customized solutions tailored to meet specific industry needs. Key revenue streams include direct sales to end-users, as well as partnerships and collaborations with distributors and industry-specific resellers. The company also benefits from service contracts for maintenance and support of its systems, contributing to recurring revenue. Furthermore, ABSO capitalizes on government regulations aimed at improving air quality, positioning its products as essential investments for businesses looking to enhance workplace safety and comply with environmental standards.

Absolent Air Care Group AB Financial Statement Overview

Summary

Mixed fundamentals: the balance sheet is healthier with materially reduced leverage (debt/equity below ~0.5) and the company remains profitable, but the latest TTM shows clear deterioration with lower revenue, meaningful margin compression (net margin ~6.8% vs ~10.3% in 2024), weaker net income, and declining free cash flow/cash conversion.

Income Statement

Profitability has been solid over the multi-year period, with gross margins generally in the low-40% range and healthy operating profitability in most years. However, the latest TTM (Trailing-Twelve-Months) shows clear deterioration versus 2024: revenue fell (despite a reported 0.5 revenue growth figure), and margins compressed meaningfully (net margin down to ~6.8% from ~10.3% in 2024), driving a sharp decline in net income. Strength: the business remains profitable on a TTM basis; weakness: recent margin and earnings trajectory is negative.

Balance Sheet

Leverage has improved materially versus earlier years: debt relative to equity has come down from elevated levels in 2020–2021 to below ~0.5 in the latest TTM (Trailing-Twelve-Months), alongside a larger equity base. Returns on equity remain positive (about ~9% TTM), though they have stepped down from stronger levels in 2022–2024, consistent with the earnings slowdown. Strength: healthier capital structure and reduced leverage; weakness: profitability on the equity base is trending down.

Cash Flow

Cash generation remains positive, with TTM (Trailing-Twelve-Months) operating cash flow and free cash flow both positive, but momentum has weakened. Free cash flow is down versus the prior year and the provided free cash flow growth is sharply negative, and cash conversion has softened with free cash flow running at roughly two-thirds of net income TTM. Strength: consistently positive free cash flow; weakness: declining free cash flow and less robust cash conversion in the most recent period.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.28B	1.40B	1.41B	1.34B	1.03B
Gross Profit	546.72M	609.63M	620.44M	548.21M	414.19M
EBITDA	203.57M	276.81M	258.53M	252.45M	169.58M
Net Income	70.17M	143.92M	140.22M	151.75M	98.23M
Balance Sheet
Total Assets	1.58B	1.68B	1.68B	1.67B	1.46B
Cash, Cash Equivalents and Short-Term Investments	238.90M	255.83M	298.08M	335.52M	233.23M
Total Debt	491.55M	496.78M	594.94M	628.65M	625.33M
Total Liabilities	651.35M	734.51M	873.34M	971.64M	927.18M
Stockholders Equity	930.06M	943.66M	806.02M	694.29M	530.04M
Cash Flow
Free Cash Flow	102.12M	111.06M	192.48M	168.91M	99.35M
Operating Cash Flow	129.91M	146.11M	214.09M	196.14M	114.51M
Investing Cash Flow	-46.63M	-37.09M	-101.39M	-45.43M	-252.35M
Financing Cash Flow	-82.46M	-163.18M	-146.50M	-62.43M	-90.75M

Absolent Air Care Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 216.00
• 50DMA: Negative
• 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:ABSO, the sentiment is Negative. The current price of 216 is above the 20-day moving average (MA) of 190.35, above the 50-day MA of 201.76, and below the 200-day MA of 223.92, indicating a neutral trend. The MACD of -0.62 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 77.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ABSO.

Absolent Air Care Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SINT	74 Outperform	kr627.00M	25.48	33.31%	6.86%	-13.48%	-33.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALIG	61 Neutral	kr13.56B	22.15	9.59%	2.09%	-1.74%	26.36%
ABSO	59 Neutral	kr2.22B	31.70	―	1.51%	-8.97%	-31.59%
NMAN	54 Neutral	kr5.20B	19.00	―	2.41%	2.05%	-11.66%
TROAX	50 Neutral	kr6.07B	40.72	12.49%	2.57%	-5.67%	-33.12%
SALT.B	46 Neutral	kr884.73M	-11.65	-40.77%	―	11.85%	6.39%