AFRY AB Class B (AFRY) AI Stock Analysis

• Market Cap: $18.80B
• Dividend Yield: 3.14%
• Average Volume (3M): 246.04K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.99
• Revenue Growth: 0.24%
• EPS Growth: 10.30%
• Country: SE
• Employees: 18,091
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 2.49
• Shares Outstanding: 108,961,400
• 10 Day Avg. Volume: 407,020
• 30 Day Avg. Volume: 246,039
• PEG Ratio: -2.03
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.60
• 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: $226.50
• Price Target Upside: 37.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: kr187.00 ▲(13.40%Upside)

AFRY AB Class B shows solid financial performance, particularly in cash flow management and profitability margins, which contributes significantly to its overall score. Technical analysis indicates mixed market momentum, and the valuation metrics suggest the stock is fairly priced with a decent dividend yield. The absence of earnings call and corporate events data limits the analysis to these key areas.

Positive Factors

Financial Performance

Profitability was somewhat better than expected, thanks to margin improvements in Infrastructure and Energy.

Leadership

Linda Pålsson has been appointed as the new President and CEO, effective immediately, and appears to be a strong fit for this leadership position.

Sector Performance

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

Negative Factors

Earnings

AFRY's 1Q25 was weaker-than-expected, with net sales falling short of expectations and a noticeable drop in adjusted EBITA.

Market Demand

The market shows varied demand, with strong areas like energy and transport infrastructure being offset by weaker areas such as pulp and paper, real estate, and parts of the industrial portfolio.

Operational Efficiency

Rapid expansion has led to a fragmented structure, introducing complexities that hinder optimal efficiency.

AFRY AB Class B Business Overview & Revenue Model

Company Description

Afry AB provides engineering, design, and advisory services for the infrastructure, industry, energy, and digitalization sectors in Sweden, Finland, Norway, Switzerland, Denmark, Germany, and internationally. The company operates through five divisions: Infrastructure, Industrial & Digital Solutions, Process Industries, Energy, and Management Consulting. The company offers architecture and design services; automation and manufacturing solutions; automotive and mobility services; building solutions for airports, culture and sports facilities, high security facilities, hospitals, healthcare and research, hotels and restaurants, and housing facilities; defense technology systems; digital solutions, and information and communication technology services; and engineering and consulting services for energy and power applications. It also offers environmental and sustainability solutions; services for food, life science, and pharmaceutical industries; management consulting services; solutions for processing industries, including mining and metals, food and beverage, pulp and paper, chemical, and forest industries; product development services; project management services; transport infrastructure services; and solutions for water management. The company was formerly known as ÅF Pöyry AB (publ) and changed its name to Afry AB in June 2021. Afry AB was founded in 1895 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

AFRY makes money through its comprehensive service offerings in engineering, consulting, and design across various sectors. The company's revenue model is primarily based on project-based contracts and consultancy fees. Key revenue streams include infrastructure development projects, industrial engineering services, energy solutions, and IT and digitalization services. AFRY partners with government bodies, industrial corporations, and other enterprises to deliver tailored solutions that meet sustainability and efficiency goals. Additionally, the company's strategic focus on long-term client relationships and involvement in large-scale projects significantly contributes to its earnings.

AFRY AB Class B Financial Statement Overview

Summary

AFRY AB Class B demonstrates robust financial health, particularly in cash flow management and profitability margins. The company has a balanced capital structure and effective cost management, though there is room for improvement in revenue growth and return on equity. Managing liabilities effectively will be key for sustained 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
	EBIT
1.82B	1.94B	1.78B	1.44B	1.52B	1.46B
	EBITDA
2.90B	2.92B	2.79B	2.28B	2.40B	2.23B
	Net Income Common Stockholders
1.12B	1.23B	1.10B	974.00M	1.13B	933.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
884.00M	1.27B	1.17B	1.09B	2.11B	1.93B
	Total Assets
26.93B	28.30B	28.17B	28.00B	25.91B	23.61B
	Total Debt
6.97B	7.25B	7.86B	7.80B	7.65B	6.80B
	Net Debt
6.09B	5.99B	6.69B	6.71B	5.54B	4.87B
	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: 164.90
• 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 164.9 is below the 20-day moving average (MA) of 170.78, below the 50-day MA of 172.77, and below the 200-day MA of 168.38, indicating a bearish trend. The MACD of -1.57 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 22.45 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
AFRY	70 Outperform	$18.80B	16.83	8.42%	3.14%	0.24%	10.30%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
0MWK		kr16.50B	48.42	4.65%	2.50%	―	―
0MHT		kr24.19B	11.37	13.64%	3.67%	―	―
0HBT		kr95.56B	15.41	10.49%	3.44%	―	―
0H0G		kr59.05B	27.78	18.38%	1.98%	―	―
BRAV		kr18.29B	16.90		4.19%	―	―