Alcadon Group AB (ALCA) AI Stock Analysis

• Market Cap: kr534.34M
• Dividend Yield: N/A
• Average Volume (3M): 9.35K
• Price to Earnings (P/E): 16.8
• Beta (1Y): -0.29
• Revenue Growth: -7.91%
• EPS Growth: -33.91%
• Country: SE
• Employees: 184
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.38
• Shares Outstanding: 24,511,026
• 10 Day Avg. Volume: 7,915
• 30 Day Avg. Volume: 9,352
• PEG Ratio: -1.50
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 5.80
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: kr25.00 ▲(7.76% Upside)

Alcadon Group AB's overall stock score is driven by a stable financial position and positive technical indicators. The company's fair valuation supports the score, though challenges in revenue growth and profitability present areas for improvement. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Strong Gross Margins

A strong gross margin indicates efficient cost management and pricing power, which can support profitability and competitive positioning in the long term.

Moderate Leverage

Moderate leverage suggests a balanced approach to financing, providing financial flexibility and reducing risk of financial distress, which is beneficial for sustainable growth.

Effective Cash Conversion

Effective cash conversion from profits indicates strong operational efficiency, ensuring liquidity and the ability to reinvest in growth opportunities.

Negative Factors

Negative Revenue Growth

Negative revenue growth suggests potential market or operational challenges, which could impact long-term expansion and market share.

Declining Free Cash Flow Growth

Declining free cash flow growth indicates reduced cash generation capacity, which may limit the company's ability to fund operations and growth initiatives.

Decreased Net Profit Margin

A decreased net profit margin reflects challenges in converting revenue into profit, which may affect overall profitability and shareholder returns over time.

Alcadon Group AB Business Overview & Revenue Model

Company Description

Alcadon Group AB (publ) engages in the supply of data and telecommunications solutions in Sweden, Norway, Denmark, and Germany. The company offers range of fiber and copper based solutions, as well as passive and active products; structured cabling systems for offices, industry, public municipality, and hospital buildings; multi-fiber push on systems and data center solutions; and active communications equipment, such as switches, routers, and wireless solutions. It also provides fiber networks/FTTx solutions, including fiber network solutions comprising FTTH/B/P and 5G solutions, and fiber solutions for energy companies, city networks, service providers, and other stakeholders; and new production and repairs, conversion, and extension works for residential networks, as well as solutions for residential communication and electricity. In addition, the company offers training, network design, troubleshooting, fiber welds, and rental services, as well as measuring instrument copper/fiber and fiber blowing equipment. It serves installers, operators, construction companies, integrators, municipalities, and data centers. The company was founded in 1988 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Alcadon Group AB generates revenue primarily through the sale of its telecommunications and fiber optic products. The company has established key revenue streams from its diverse product portfolio which includes passive optical components, structured cabling systems, and custom solutions tailored for specific customer needs. Alcadon also benefits from long-term partnerships with network operators and service providers, which contribute to recurring sales and project-based revenues. Additionally, the company leverages its expertise in the telecommunications sector to provide consultancy services, further enhancing its revenue potential. Seasonal trends in the telecommunications industry, along with advancements in technology, also play a significant role in shaping Alcadon’s earnings.

Alcadon Group AB Financial Statement Overview

Summary

Alcadon Group AB demonstrates a stable financial foundation with strong gross margins and moderate leverage. However, challenges in revenue growth and net profit margins highlight areas for improvement. The cash flow situation requires attention due to declining free cash flow growth, although cash conversion remains robust. Overall, the company maintains a solid position but faces headwinds in profitability and growth.

Income Statement

Alcadon Group AB's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 34.52%, indicating efficient cost management. However, the net profit margin has decreased to 1.95%, reflecting challenges in converting revenue into profit. Revenue growth has turned negative at -2.97% TTM, suggesting potential market or operational challenges. Despite these issues, the EBIT and EBITDA margins remain stable, showing operational resilience.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.44 TTM, indicating moderate leverage. The return on equity is 3.78% TTM, which is lower than previous years, suggesting reduced profitability for shareholders. The equity ratio stands at 51.55% TTM, showing a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals some concerns, with a negative free cash flow growth rate of -11.63% TTM, indicating reduced cash generation. The operating cash flow to net income ratio is 0.30 TTM, suggesting that cash flow generation is not fully aligned with net income. However, the free cash flow to net income ratio is strong at 98.56% TTM, indicating effective cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.52B	1.60B	1.57B	1.11B	736.47M	467.62M
Gross Profit	897.00M	405.80M	384.23M	283.60M	207.27M	134.31M
EBITDA	124.80M	130.10M	127.50M	83.66M	77.02M	53.06M
Net Income	31.90M	36.90M	37.86M	37.07M	47.20M	29.04M
Balance Sheet
Total Assets	1.56B	1.70B	1.58B	1.66B	722.80M	458.69M
Cash, Cash Equivalents and Short-Term Investments	38.20M	57.90M	62.52M	101.26M	28.37M	5.55M
Total Debt	376.70M	420.50M	412.15M	548.36M	180.17M	145.05M
Total Liabilities	737.80M	844.90M	911.48M	1.09B	382.09M	224.83M
Stockholders Equity	820.10M	856.20M	669.46M	575.14M	340.47M	233.86M
Cash Flow
Free Cash Flow	98.40M	119.30M	130.40M	12.30M	12.93M	27.51M
Operating Cash Flow	101.60M	125.00M	136.65M	24.08M	18.42M	31.15M
Investing Cash Flow	-23.40M	-178.30M	-50.52M	-259.02M	-49.54M	-8.90M
Financing Cash Flow	-83.70M	45.30M	-125.00M	306.43M	53.87M	-34.38M

Alcadon Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.20
• 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:ALCA, the sentiment is Positive. The current price of 23.2 is above the 20-day moving average (MA) of 22.43, above the 50-day MA of 21.85, and above the 200-day MA of 21.73, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 62.73 is Neutral, neither overbought nor oversold. The STOCH value of 75.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ALCA.

Alcadon Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALCA	71 Outperform	kr534.34M	16.75	―	―	-7.91%	-33.91%
KEBNI.B	62 Neutral	€495.25M	84.58	8.68%	―	9.30%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAVEN	55 Neutral	€298.98M	―	-5.81%	―	-9.79%	-144.24%
INCOAX	49 Neutral	€70.88M	―	-24.59%	―	-48.24%	-48.99%
WAYS	48 Neutral	kr265.50M	479.59	―	―	10.55%	―
GAPW.B	46 Neutral	€573.71M	―	-52.89%	―	53.78%	19.38%