AcadeMedia AB (ACAD) AI Stock Analysis

• Market Cap: €9.85B
• Dividend Yield: 1.76%
• Average Volume (3M): 160.81K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.35
• Revenue Growth: 10.27%
• EPS Growth: 33.48%
• Country: SE
• Employees: 16,604
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 3.24
• Shares Outstanding: 99,011,730
• 10 Day Avg. Volume: 137,920
• 30 Day Avg. Volume: 160,810
• 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: €104.61
• Price Target Upside: 4.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: kr105.00 ▲(5.00% Upside)

AcadeMedia AB's stock is supported by strong technical indicators and a reasonable valuation, which are the most significant factors driving the score. The company's financial performance is solid, but high leverage and declining free cash flow growth are potential risks. The absence of earnings call and corporate events data means these factors do not influence the score.

AcadeMedia AB Business Overview & Revenue Model

Company Description

AcadeMedia AB (ACAD) is a leading education company in Northern Europe, offering a broad range of educational services from preschool to adult education. The company operates through various segments, including Preschool, Compulsory School, Upper Secondary School, and Adult Education. AcadeMedia is committed to providing high-quality education and training services, focusing on enhancing learning outcomes and meeting the diverse needs of its students across Sweden, Norway, and Germany.

How the Company Makes Money

AcadeMedia AB generates revenue primarily through government funding and student fees across its different educational segments. In the Preschool and Compulsory School segments, the company receives funding based on student enrollment from local municipalities. The Upper Secondary School segment is funded through a combination of government allocations and tuition fees paid by students. For its Adult Education services, AcadeMedia competes for government contracts and also partners with industries to provide vocational training programs. The company's ability to maintain strong relationships with municipalities and secure government contracts is crucial for its financial performance. Additionally, strategic acquisitions and expansions into new geographic markets contribute to revenue growth and diversification.

AcadeMedia AB Financial Statement Overview

Summary

AcadeMedia AB demonstrates strong revenue growth and stable profitability, supported by efficient operational management. However, the high leverage and recent decline in free cash flow growth present potential risks. Overall, the company is well-positioned in the education sector, but careful management of debt and cash flow is essential to maintain financial health.

Income Statement

AcadeMedia AB shows strong revenue growth with a TTM increase of 9.51%, indicating robust demand in the education sector. The gross profit margin is healthy at 30.22%, although it has slightly decreased from the previous year. Net profit margin is modest at 4.05%, reflecting stable profitability. EBIT and EBITDA margins are consistent, suggesting efficient operational management.

Balance Sheet

The company has a high debt-to-equity ratio of 2.02, indicating significant leverage, which could pose a risk if not managed carefully. However, the return on equity is solid at 11.88%, showing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to asset financing.

Cash Flow

Free cash flow has decreased by 31.7% in the TTM, which is a concern. However, the operating cash flow to net income ratio is strong at 0.77, indicating good cash conversion from earnings. The free cash flow to net income ratio is high at 0.91, reflecting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.68B	18.68B	17.33B	15.54B	13.88B	12.97B
Gross Profit	5.58B	5.58B	5.40B	4.81B	3.96B	3.74B
EBITDA	4.11B	4.11B	3.66B	3.22B	2.98B	2.75B
Net Income	821.00M	821.00M	632.00M	578.00M	605.00M	599.00M
Balance Sheet
Total Assets	22.02B	22.02B	22.73B	19.92B	18.86B	17.41B
Cash, Cash Equivalents and Short-Term Investments	745.00M	745.00M	1.32B	967.00M	1.14B	966.00M
Total Debt	12.10B	12.10B	13.09B	11.10B	10.60B	9.62B
Total Liabilities	15.39B	15.39B	16.46B	13.78B	13.11B	12.10B
Stockholders Equity	6.63B	6.63B	6.26B	6.13B	5.76B	5.32B
Cash Flow
Free Cash Flow	3.46B	3.60B	3.21B	2.58B	2.68B	2.74B
Operating Cash Flow	3.74B	3.74B	3.50B	2.90B	2.83B	2.87B
Investing Cash Flow	-678.00M	-678.00M	-871.00M	-481.00M	-536.00M	-437.00M
Financing Cash Flow	-3.58B	-3.58B	-2.27B	-2.59B	-2.14B	-2.00B

AcadeMedia AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ACAD, the sentiment is Positive. The current price of 100 is above the 20-day moving average (MA) of 95.24, above the 50-day MA of 91.06, and above the 200-day MA of 79.41, indicating a bullish trend. The MACD of 2.52 indicates Negative momentum. The RSI at 66.37 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ACAD.

AcadeMedia AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	73 Outperform	€9.85B	12.10	12.81%	1.76%	10.27%	33.48%
CEDER	65 Neutral	551.45M	24.97	11.47%	7.95%	45.29%	151.67%
TELLUS	47 Neutral	73.51M	-17.88	183.68%	―	9.62%	86.56%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

AcadeMedia AB Corporate Events

AcadeMedia Reports Strong Q4 Growth and Strategic Expansion Plans

AcadeMedia reported a 5% increase in net sales for the fourth quarter of 2024/2025, driven by a 5.5% organic growth, reaching SEK 5,120 million. The company saw a 12% rise in adjusted operating profit and a 3.7% increase in student numbers. The growth reflects successful investments in literacy and teacher qualifications, with international business and the Adult Education Segment contributing significantly to profitability. AcadeMedia aims for international business and adult education to represent 50% of net sales, currently at over 40%, and is poised for further international acquisitions.

AcadeMedia Expands Share Base with New Warrants

AcadeMedia AB announced an increase in the number of shares and votes due to the exercise of warrants from a program adopted in 2021, resulting in 21,227 new ordinary shares. This change brings the total number of shares to 99,204,786, with a total of 99,031,034.7 votes, potentially impacting the company’s shareholder structure and market presence.

AcadeMedia AB Reports Strong Growth and Strategic Acquisitions

AcadeMedia AB reported a 9.2% increase in net sales for the third quarter of 2024/25, driven by organic growth and strategic acquisitions in Germany and the Netherlands. The company also saw improvements in operating profit and student enrollment, reflecting its strong market positioning and commitment to enhancing educational quality, which is likely to benefit stakeholders through increased profitability and market expansion.

AcadeMedia Expands Internationally with German School Acquisitions

AcadeMedia has announced the acquisition of International School Potsdam and International School Erfurt in Germany, marking a significant step in its international growth strategy. This acquisition, which includes preschool, compulsory school, and upper secondary school operations, aligns with AcadeMedia’s goal to generate 50% of its sales outside Sweden and strengthens its position in the German education market.