AFRY AB Class B (AFRY) AI Stock Analysis

• Market Cap: $17.24B
• Dividend Yield: 3.92%
• Average Volume (3M): 243.81K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.05
• Revenue Growth: -2.84%
• EPS Growth: -21.34%
• Country: SE
• Employees: 18,091
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 2.40
• Shares Outstanding: 108,961,400
• 10 Day Avg. Volume: 277,231
• 30 Day Avg. Volume: 243,805
• PEG Ratio: -1.97
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.32
• 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: $207.72
• Price Target Upside: 32.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: kr167.00 ▲(6.17%Upside)

AFRY AB Class B shows strengths in cash flow management and reasonable valuation metrics. However, technical analysis indicates a bearish trend, with the stock trading below key moving averages. While the company maintains a stable financial position, efforts to enhance revenue growth and return on equity are essential for future performance.

Positive Factors

Energy Sector Growth

Strong growth in the Energy sector was driven by continued robust demand and high activity in all business areas.

Order Backlog

Despite macro headwinds, the order backlog grew to SEK 20.7bn.

Strategic Acquisition

AFRY has announced the acquisition of Reta Engenharia, enhancing its industrial capabilities across the Americas.

Negative Factors

Lower Capacity Utilization

Capacity utilization fell to 72.6%.

Restructuring Costs

Management is progressing on its strategic review, targeting an additional SEK 200-300m in restructuring costs.

Segment Underperformance

Process Industries, Industrial & Digital Solutions, and Management Consulting underperformed due to continued softness in pulp & paper, real estate, and parts of the industrial portfolio.

AFRY AB Class B Business Overview & Revenue Model

Company Description

AFRY AB Class B (AFRY) is a leading European engineering, design, and advisory company based in Sweden. The company operates across several sectors, including infrastructure, industry, energy, and digitalization, providing innovative solutions to complex challenges. AFRY's core services encompass consulting, engineering, and project management, aimed at accelerating sustainability and digital transformation for its clients.

How the Company Makes Money

AFRY makes money primarily through its consultancy and engineering services, which are provided to a wide range of industries such as infrastructure, energy, and manufacturing. The company generates revenue by delivering tailored project solutions, from conception through to implementation, leveraging its expertise in sustainable and digital innovations. Key revenue streams include fees for advisory services, engineering design projects, and management of large-scale infrastructure developments. AFRY's significant partnerships with public and private sector clients worldwide, along with its strategic focus on sustainability and digitalization, further contribute to its earnings by expanding its market reach and service offerings.

AFRY AB Class B Financial Statement Overview

Summary

AFRY AB Class B demonstrates solid financial health with strong cash flow metrics and effective profitability margins. The company maintains a balanced capital structure, but needs to focus on accelerating revenue growth and enhancing return on equity. Liabilities management will be crucial for long-term stability.

Income Statement

AFRY AB Class B shows a solid financial performance in its income statement. The gross profit margin is healthy, with a TTM of approximately 41.5%. However, there has been a slight decline in total revenue from the previous year, indicating a need for growth focus. The net profit margin is stable at around 4.2% TTM. EBIT and EBITDA margins are robust, indicating effective cost management. The revenue growth trends show fluctuations, with some decline in recent periods, which is a point of concern.

Balance Sheet

The company's balance sheet reveals a moderate financial position with a debt-to-equity ratio of approximately 0.54 TTM, which is reasonable for the industry. The equity ratio stands at around 47.8%, indicating a balanced capital structure. However, the return on equity (ROE) is relatively low at 8.7% TTM, reflecting moderated profitability. The company's equity base is strong, but the high total liabilities might pose a risk if not managed effectively.

Cash Flow

AFRY AB Class B exhibits strong cash flow metrics, with a consistent free cash flow generation. The free cash flow to net income ratio is impressive at approximately 1.73 TTM, showcasing efficient cash conversion. Operating cash flow remains strong, contributing to financial flexibility. The free cash flow growth rate is positive, indicating effective capital expenditure management, despite fluctuations in investing and financing cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.02B	27.16B	26.98B	23.55B	20.10B	18.99B
Gross Profit	11.21B	21.46B	5.08B	18.66B	16.19B	15.18B
EBITDA	2.90B	2.92B	2.79B	2.28B	2.40B	2.23B
Net Income	1.12B	1.23B	1.10B	974.00M	1.13B	933.00M
Balance Sheet
Total Assets	26.93B	28.30B	28.17B	28.00B	25.91B	23.61B
Cash, Cash Equivalents and Short-Term Investments	884.00M	1.27B	1.17B	1.09B	2.11B	1.93B
Total Debt	6.97B	7.25B	7.86B	7.80B	7.65B	6.80B
Total Liabilities	14.02B	15.15B	15.72B	15.82B	14.92B	13.51B
Stockholders Equity	12.88B	13.13B	12.45B	12.18B	10.99B	10.10B
Cash Flow
Free Cash Flow	1.94B	1.86B	1.62B	891.00M	1.38B	1.90B
Operating Cash Flow	2.00B	1.99B	1.79B	1.04B	1.50B	2.08B
Investing Cash Flow	-311.00M	-383.00M	-756.00M	-873.00M	-1.21B	-345.00M
Financing Cash Flow	-2.25B	-1.47B	-942.00M	-1.01B	-12.00M	-987.00M

AFRY AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 157.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AFRY, the sentiment is Negative. The current price of 157.3 is below the 20-day moving average (MA) of 159.42, below the 50-day MA of 164.73, and below the 200-day MA of 166.25, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 36.35 is Neutral, neither overbought nor oversold. The STOCH value of 41.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:AFRY.

AFRY AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKA.B	78 Outperform	kr91.98B	15.12	10.49%	3.58%	9.67%	26.69%
BRAV	74 Outperform	kr18.40B	16.69		4.17%	-3.75%	1.20%
AFRY	64 Neutral	$17.24B	18.95	7.17%	3.92%	-2.84%	-21.34%
SWEC.B	64 Neutral	kr55.12B	27.08	18.81%	2.14%	2.83%	18.23%
LIAB	64 Neutral	kr15.31B	44.87	4.65%	2.70%	2.71%	-56.45%
Sector *	63 Neutral	kr59.49B	12.36	1.88%	2.32%	0.55%	-4.48%
PEAB.B	63 Neutral	kr22.65B	10.69	10.37%	3.91%	-3.46%	12.20%

AFRY AB Class B Corporate Events

AFRY Announces Executive Team Change as EVP Robert Larsson Departs

AFRY AB announced that Robert Larsson, Executive Vice President and Head of the Global Division Transportation and Places, will be leaving the company to pursue a new opportunity. A recruitment process to find his successor has begun, with Larsson remaining in his role until the end of December 2025 to ensure a smooth transition. Larsson has been praised for his leadership and contributions, particularly in enhancing profitability and setting a strategic direction for the Infrastructure Division. His departure is seen as a significant change in the company’s executive team, but both Larsson and AFRY’s CEO express confidence in the company’s future direction and growth potential.

The most recent analyst rating on (SE:AFRY) stock is a Buy with a SEK244.00 price target. To see the full list of analyst forecasts on AFRY AB Class B stock, see the SE:AFRY Stock Forecast page.