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AddLife AB Class B (SE:ALIF.B)
:ALIF.B
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AddLife AB
(ALIF.B)
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Rating:61Neutral
Price Target:
kr160.00
▲(3.16% Upside)
Action:ReiteratedDate:02/07/26
The score is driven primarily by improving financial quality—especially strong and improving cash generation and a strengthening leverage profile—supported by a generally positive earnings-call outlook emphasizing further margin improvement and balance-sheet capacity. Offsetting this are inconsistent top-line performance and a mixed technical setup with negative momentum, alongside a relatively expensive valuation (high P/E and low dividend yield).
Positive Factors
Revenue growth & margin stability
Sustained top-line expansion with a stable ~37.8% gross margin shows the distribution model and product mix scale are working. Durable revenue growth widens the base for reinvestment, supports supplier leverage and pricing power, and underpins longer-term margin improvement initiatives.
Cash generation & working-capital efficiency
High operating cash flow and strong cash conversion reflect effective working-capital management and recurring cash earnings from distribution and services. Persistent cash generation funds organic growth, bolt-on M&A and capex without heavy reliance on external financing, improving financial resilience.
Deleveraging enables disciplined M&A
Meaningful net-debt reduction gives the company balance-sheet flexibility to pursue its preferred EUR 10–30m bolt-on acquisitions while keeping leverage conservative. This structural capacity supports a repeatable 50/50 organic/acquisition growth strategy and portfolio upgrade over time.
Negative Factors
Low net profitability
A low net margin despite healthy gross margins indicates material operating costs, integration or corporate overhead pressure. Persistently low net profitability constrains retained earnings, limits reinvestment capacity and reduces the buffer for cyclical downturns or unexpected shocks over the medium term.
End-market and geographic sensitivity
Concentration in cyclical instrument and research spending plus pockets of weaker demand across certain geographies make revenue streams vulnerable to external cycles. Structural exposure to volatile end markets increases forecast uncertainty and can mute steady margin progression.
Sub-scale units & portfolio reshaping
Pruning low-margin lines and divesting assets removes near-term recurring revenue and requires replacement through organic growth or acquisitions. Underperforming subsidiaries (mid-single-digit margins) still need uplift, so portfolio reshaping can weigh on short-to-medium-term profit stability until higher-margin replacements scale.
AddLife AB (ALIF.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr16.99B
Dividend Yield0.46%
Average Volume (3M)97.37K
Price to Earnings (P/E)34.6
Beta (1Y)0.61
Revenue Growth5.14%
EPS Growth236.75%
CountrySE
Employees2,251
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.12
Shares Outstanding117,877,460
10 Day Avg. Volume108,367
30 Day Avg. Volume97,373
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)3.56
Price to Sales (P/S)1.86
P/FCF Ratio17.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7.76
Revenue Forecast (FY)kr11.00B
AddLife AB Business Overview & Revenue Model
Company DescriptionAddLife AB (publ), together with its subsidiaries, provides equipment, medical devices, and reagents primarily to healthcare system, research, colleges, and universities, as well as the food and pharmaceutical industries. The company operates in two segments, Labtech and Medtech. The Labtech segment offers products, solutions, and services in the areas of diagnostics, and biomedical research and laboratory equipment for haematology, pathology, point-of-care diagnostics, cell biology, genetics, microbiology, virology, molecular biology, clinical chemistry, immunology, consumables, and analytical instruments segments. This segment also offers support, maintenance, advice, and training services. The Medtech segment provides medical device products for surgery, respiration, intensive care, wound care, enteral nutrition, fall prevention, welfare technology, ear, and nose and throat segments, as well as bathroom-related assistive devices and assistive devices for children with disabilities. It operates in Sweden, Finland, Denmark, Norway, the United Kingdom, Ireland, Germany, Italy, Austria, Switzerland, rest of Europe, and internationally. AddLife AB (publ) was founded in 1906 and is based in Stockholm, Sweden.
How the Company Makes MoneyAddLife AB generates revenue through multiple streams, primarily focusing on the sale of medical and laboratory products. The company's revenue model is driven by its distribution business, which involves sourcing products from various manufacturers and selling them to healthcare facilities, laboratories, and research institutions. Key revenue streams include direct sales of medical devices, laboratory equipment, and consumables, as well as service agreements and maintenance contracts. Additionally, AddLife benefits from strategic partnerships with leading manufacturers, which enhance its product offerings and market reach. The company also invests in value-added services such as training and support, which contribute to customer loyalty and recurring revenue. Overall, AddLife's diverse product portfolio and strong industry relationships are critical factors that bolster its financial performance.
AddLife AB Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone: clear and continuous margin improvement, strong operating cash flow, meaningful net-debt reduction (net debt-to-EBITDA 2.2), and an active, disciplined M&A pipeline. These positives offset material near-term headwinds from currency effects, some weaker instrument and geographic pockets, and one-off impacts from strikes and a divestment/hand-over of a UK endoscopy business. Management emphasized ongoing margin initiatives, portfolio upgrades and confidence in picking up acquisition activity in 2026.Q4-2025 Updates
Positive Updates
Improved Profitability and Margins
Adjusted EBITA margin improved to 12.4% in the quarter (vs 12.3% a year ago) and the full-year EBITA margin rose to ~12.1% (up from 11.3% the prior year and 10.5% in 2023). Labtech Q4 margin remained strong at 14.1% and Medtech Q4 margin improved to 12.0% (from 11.6%). Full-year margins: Labtech ~12.5% and Medtech ~12.4%.
Strong Cash Generation and Working Capital Performance
Operating cash flow was almost SEK 900 million in the quarter and SEK 1.4 billion for the full year. Working capital contributed SEK 426 million in the quarter, inventory-to-sales improved to 16% (from 17% in 2024), and cash conversion remained high at 111% (98% excluding sale of operations).
Debt Reduction and Balance Sheet Strengthening
Net debt decreased by almost SEK 900 million in 2025 (almost SEK 800 million reduction in the quarter). Net debt-to-EBITDA finished at 2.2 (well below the target of 3) and net debt-to-adjusted EBITA was 2.5, providing capacity for further acquisitions.
Organic and Acquisition-Fueled Growth in 2025
For the full year 2025 organic growth was ~10% and acquired growth contributed ~2%. Total EBITA growth for 2025 was ~8%. In the quarter currency-adjusted sales rose ~2% while adjusted EBITA increased ~5%.
Portfolio & Margin Improvement Initiatives Paying Off
Management reported stronger gross margin driven by price management, higher-margin product mix and new tenders, active pruning of low-margin products, and an increased share of own products—all contributing to the margin improvement trend.
Active M&A Pipeline and Selected Additions
Acquisitions in December included Pharmacold and Opitek (adding refrigeration and patient positioning capabilities). Management indicated a healthy pipeline focused on targets typically between EUR 10–30 million turnover and reiterated discipline on valuation.
Negative Updates
Significant Currency Headwinds
Reported revenue in the quarter was down ~5% (currency headwind) and EBITA was negatively impacted (cited ~7% impact). Including currencies, some reported sales growth was negative (management noted sales growth including currencies was down ~3% in the quarter).
Softness in Specific End Markets and Product Areas
Labtech experienced slightly lower instrument sales vs an unusually strong Q4 2024 (currency-adjusted revenues for Labtech declined ~3% in the quarter). There was hesitancy noted in academic research purchases and some caution in pharma segments.
UK & Spain Operational Disruptions
Strikes in the U.K. and Spain and a period of flu caused lost surgical days and weaker elective surgery volumes in December, weighing on capital and procedure-related sales. The company also handed over an endoscopy business in the U.K. to a supplier (consideration SEK 158 million), reducing recurring revenue from that line.
Sub-par Margins in Some Subsidiaries
AddVision (UK/Germany operations referenced) remains in the mid-single-digit margin range—improving but still below group averages and requiring further measures to reach target profitability.
Partial Revenue Impact from Divestments and Portfolio Shaping
Divestment/hand-over of the endoscopy business (SEK 158 million consideration) reduced recurring sales (approx SEK 140 million referenced), and portfolio tail-cutting and product discontinuations contributed roughly a ~1% sales reduction versus the base—management expects gradual replacement over time rather than immediate substitution.
Geographic Exposure Weaknesses
Rest of world sales (including China, Australia, some U.S. exposure) were noted as reduced and specific companies selling into the U.S. research market experienced weaker demand—group indicated this does not move the needle materially but is a headwind for those units.
Company Guidance
Management reiterated guidance to continue the profit-improvement agenda into 2026, aiming to drive further EBITA margin expansion (group FY EBITA 12.1%; Q4 adjusted EBITA 12.4%; Labtech Q4 14.1%/FY 12.5%; Medtech Q4 12.0%/FY 12.4%) while pursuing both organic and M&A-led growth (2025: organic +10%, acquisitions +2%; total EBITA growth 8%). They signalled continued deal activity—having closed Pharmacold and Opitek in December—with a return to a roughly 50/50 organic/acquisition contribution over time and a preferred deal size in the EUR 10–30m turnover range, enabled by a strengthened balance sheet (net debt down ~SEK 900m in 2025 and ~SEK 800m in Q4; net debt/EBITDA 2.2, net debt/adj. EBITA 2.5, target ≤3). Cash generation and working-capital efficiency remain priorities (operating cash flow ~SEK 900m in Q4 and SEK 1.4bn FY; cash conversion 111% FY, 98% excluding disposals, a more realistic ~95% going forward; working-capital release SEK 426m in Q4; inventory/sales 16% vs 17% in 2024), and management reiterated long‑term targets of 15% year‑over‑year profit improvement and profit/working capital above 45% (2025: 62%).AddLife AB Financial Statement Overview
Summary
Cash flow is the standout strength (Cash Flow Score 71) with strong free-cash-flow conversion and improving operating cash flow. Balance sheet leverage has improved and ROE has recovered (Balance Sheet Score 62), but income performance is less consistent (Income Statement Score 58) due to sharp revenue decline in 2025 despite margin rebound.Income Statement
Profitability has been volatile: gross margin has been steady in the high-30% range, and 2025 showed an improvement in operating profitability (operating margin ~9.5% vs ~6.9% in 2024) with net margin rebounding to ~5.4%. However, revenue growth swung sharply negative in 2025 after modest growth in 2023–2024, and net profitability remains well below the stronger levels seen in 2020–2021, indicating a less consistent earnings profile.58
Neutral
Balance Sheet
Leverage looks manageable but meaningful: debt is below equity in 2025 (debt-to-equity ~0.88), improving from higher leverage in 2022–2023 (~1.07–1.13). Returns on equity have recovered to ~10.3% in 2025 from mid-single digits in 2023–2024, but remain below the peak levels achieved earlier in the period, suggesting improved—but not best-in-class—capital efficiency.62
Positive
Cash Flow
Cash generation is a clear strength: free cash flow grew strongly in 2024–2025 and remains high relative to earnings (free cash flow is ~82% of net income in 2025). Operating cash flow has also improved year-over-year, though operating cash flow relative to revenue remains modest and fairly stable (~0.34–0.35 in 2024–2025), implying solid conversion but not exceptional cash intensity.71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.44B | 10.29B | 9.69B | 9.08B | 7.99B |
| Gross Profit | 3.98B | 3.86B | 3.60B | 3.43B | 2.86B |
| EBITDA | 1.80B | 1.52B | 1.53B | 1.45B | 1.46B |
| Net Income | 560.00M | 252.00M | 190.00M | 480.00M | 719.00M |
Balance Sheet | |||||
| Total Assets | 12.71B | 13.05B | 12.74B | 13.06B | 10.60B |
| Cash, Cash Equivalents and Short-Term Investments | 813.00M | 331.00M | 272.00M | 376.00M | 345.30M |
| Total Debt | 4.77B | 5.07B | 5.29B | 5.59B | 4.10B |
| Total Liabilities | 7.26B | 7.75B | 7.79B | 8.09B | 6.30B |
| Stockholders Equity | 5.44B | 5.31B | 4.96B | 4.97B | 4.29B |
Cash Flow | |||||
| Free Cash Flow | 1.14B | 798.00M | 465.00M | 627.00M | 866.30M |
| Operating Cash Flow | 1.39B | 1.09B | 773.00M | 909.00M | 1.01B |
| Investing Cash Flow | -497.00M | -386.00M | -317.00M | -1.09B | -2.98B |
| Financing Cash Flow | -305.00M | -682.00M | -554.00M | 134.00M | 2.07B |
AddLife AB Technical Analysis
Negative
155.10
Price Trends
145.83
Negative
164.74
Negative
172.58
Negative
Market Momentum
-1.50
Positive
41.46
Neutral
26.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ALIF.B, the sentiment is Negative. The current price of 155.1 is above the 20-day moving average (MA) of 143.91, above the 50-day MA of 145.83, and below the 200-day MA of 172.58, indicating a bearish trend. The MACD of -1.50 indicates Positive momentum. The RSI at 41.46 is Neutral, neither overbought nor oversold. The STOCH value of 26.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ALIF.B.
AddLife AB Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | kr12.91B | 87.10 | 19.59% | ― | 37.41% | 67.03% | |
63 Neutral | kr13.74B | 30.21 | 4.54% | ― | 17.13% | ― | |
61 Neutral | kr16.99B | 34.62 | 7.24% | 0.46% | 5.14% | 236.75% | |
56 Neutral | kr1.09B | -74.03 | -4.20% | ― | 21.71% | -80.37% | |
54 Neutral | kr21.43B | 546.38 | 3.08% | 4.25% | -0.90% | -70.95% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | kr12.64B | -3.70 | 3.34% | 0.80% | -1.29% | ― |
* Healthcare Sector Average
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AddLife AB Corporate Events
AddLife boosts margins and cash flow to fuel renewed acquisition push
Feb 4, 2026
AddLife’s fourth-quarter report shows resilient profitability despite a 3% sales dip, with EBITA margin climbing to 18.2% driven by efficiency gains, portfolio refinements, and two small acquisitions; full-year figures reflect modest 2% net sales growth, 8% higher adjusted EBITA, doubled cash flow, lower leverage, and a proposed dividend hike, indicating a fortified balance sheet ready to restart a more assertive M&A strategy.
The most recent analyst rating on ($SE:ALIF.B) stock is a Hold with a SEK146.00 price target. To see the full list of analyst forecasts on AddLife AB stock, see the SE:ALIF.B Stock Forecast page.
AddLife AB Acquires Opitek International to Boost Orthopedic Segment
Dec 1, 2025
AddLife AB has acquired Opitek International ApS, a Danish MedTech company specializing in patient positioning solutions, to enhance its Mediplast division. This strategic acquisition is expected to bolster AddLife’s presence in the orthopedic segment by leveraging Opitek’s innovative product portfolio and established customer relationships. The move aligns with AddLife’s growth strategy, aiming to expand its own brands and accelerate market reach, potentially leading to long-term profitable growth.
The most recent analyst rating on ($SE:ALIF.B) stock is a Hold with a SEK200.00 price target. To see the full list of analyst forecasts on AddLife AB stock, see the SE:ALIF.B Stock Forecast page.
AddLife AB Expands with Acquisition of Pharmacold A/S
Dec 1, 2025
AddLife AB has acquired Pharmacold A/S, a Danish specialist in refrigeration technology for the pharmaceutical and healthcare sectors. This acquisition, which aligns with AddLife’s strategic goals, will enhance its service offerings and market position in Denmark. Pharmacold will operate as a subsidiary under Holm & Halby, a company within AddLife’s Labtech business area. The acquisition is expected to have a marginally positive impact on AddLife’s earnings per share for the current financial year.
The most recent analyst rating on ($SE:ALIF.B) stock is a Hold with a SEK200.00 price target. To see the full list of analyst forecasts on AddLife AB stock, see the SE:ALIF.B Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.