Absolent Air Care Group AB (ABSO) AI Stock Analysis

• Market Cap: kr2.39B
• Dividend Yield: 1.51%
• Average Volume (3M): 1.72K
• Price to Earnings (P/E): 27.7
• Beta (1Y): -0.10
• Revenue Growth: -8.97%
• EPS Growth: -31.59%
• Country: SE
• Employees: 479
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.89
• Shares Outstanding: 11,320,968
• 10 Day Avg. Volume: 1,327
• 30 Day Avg. Volume: 1,724
• PEG Ratio: 8.41
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 26.40
• 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): 8.85
• Revenue Forecast (FY): kr1.28B

• Rating: 59 Neutral
• Price Target: kr214.00 ▼(-0.93% Downside)

The overall stock score of 59 reflects solid financial management but is weighed down by bearish technical indicators and moderate valuation. The company's declining profitability and revenue growth are key concerns, and the lack of bullish momentum in technical analysis further impacts the score.

Positive Factors

Strong Market Position

The company's leadership in air filtration positions it well to capitalize on growing demand for air quality solutions across industries.

Sustainability Focus

A focus on sustainability aligns with global trends and regulatory demands, enhancing long-term competitiveness and market appeal.

Recurring Revenue Streams

Recurring revenue from service contracts provides financial stability and predictability, supporting long-term growth and resilience.

Negative Factors

Declining Revenue Growth

A decline in revenue growth suggests potential market challenges and may impact the company's ability to expand its market share.

Cash Flow Challenges

Decreasing cash flow growth can strain operations and limit investment in growth initiatives, affecting long-term financial health.

Profitability Decline

A decline in ROE indicates reduced profitability, which may affect investor confidence and the company's ability to generate returns.

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

Absolent Air Care Group AB demonstrates solid financial management with improved leverage and cash flow generation. However, declining profitability and revenue growth pose challenges. The company needs to focus on enhancing operational efficiency and boosting revenue to sustain long-term growth.

Income Statement

The company shows a stable gross profit margin around 43% over the years, indicating efficient cost management. However, the net profit margin has decreased to 6.6% in the TTM, reflecting reduced profitability. Revenue growth has been negative recently, which is a concern. The EBIT and EBITDA margins have also declined, suggesting pressure on operating efficiency.

Balance Sheet

The debt-to-equity ratio has improved from 1.69 in 2020 to 0.49 in the TTM, indicating better leverage management. Return on equity has decreased to 9.35% in the TTM, showing reduced profitability for shareholders. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Free cash flow growth is positive at 16.1% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is stable, reflecting consistent cash conversion. However, the free cash flow to net income ratio has decreased, suggesting potential cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.27B	1.40B	1.41B	1.34B	1.03B	895.86M
Gross Profit	544.90M	609.63M	620.44M	548.21M	414.19M	303.37M
EBITDA	183.33M	276.81M	258.53M	252.45M	169.58M	93.31M
Net Income	86.29M	143.92M	140.22M	151.75M	98.23M	-55.09M
Balance Sheet
Total Assets	1.60B	1.68B	1.68B	1.67B	1.46B	1.13B
Cash, Cash Equivalents and Short-Term Investments	215.83M	255.83M	298.08M	335.52M	233.23M	451.85M
Total Debt	434.75M	496.78M	594.94M	628.65M	625.33M	581.75M
Total Liabilities	681.89M	734.51M	873.34M	971.64M	927.18M	783.07M
Stockholders Equity	921.61M	943.66M	806.02M	694.29M	530.04M	343.79M
Cash Flow
Free Cash Flow	92.23M	111.06M	192.48M	168.91M	99.35M	40.50M
Operating Cash Flow	144.32M	146.11M	214.09M	196.14M	114.51M	54.45M
Investing Cash Flow	-57.05M	-37.09M	-101.39M	-45.43M	-252.35M	-35.55M
Financing Cash Flow	-83.17M	-163.18M	-146.50M	-62.43M	-90.75M	289.38M

Absolent Air Care Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 216.00
• 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:ABSO, the sentiment is Negative. The current price of 216 is above the 20-day moving average (MA) of 214.90, above the 50-day MA of 214.74, and below the 200-day MA of 232.01, indicating a bearish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 45.43 is Neutral, neither overbought nor oversold. The STOCH value of 19.58 is Positive, 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	73 Outperform	kr718.58M	25.59	33.31%	6.86%	-13.48%	-33.66%
NMAN	66 Neutral	kr5.99B	20.24	―	2.41%	2.05%	-11.66%
ALIG	65 Neutral	kr15.71B	22.29	9.59%	2.09%	-1.74%	26.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TROAX	62 Neutral	kr9.02B	36.90	12.49%	2.57%	-5.67%	-33.12%
ABSO	59 Neutral	kr2.39B	27.68	―	1.51%	-8.97%	-31.59%
SALT.B	39 Underperform	kr932.14M	-13.34	-40.77%	―	11.85%	6.39%