Alleima AB (ALLEI) AI Stock Analysis

• Market Cap: kr17.39B
• Dividend Yield: 3.3%
• Average Volume (3M): 431.69K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.03
• Revenue Growth: -1.25%
• EPS Growth: -7.77%
• Country: SE
• Employees: 6,414
• Sector: Services
• Sector Strength: N/A
• Industry: Steel
• EPS (TTM): 1.36
• Shares Outstanding: 250,877,180
• 10 Day Avg. Volume: 353,780
• 30 Day Avg. Volume: 431,689
• PEG Ratio: -0.69
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 20.26
• 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: kr72.00
• Price Target Upside: 3.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: kr72.00 ▲(3.67% Upside)

The overall stock score of 60 reflects a mixed outlook for Alleima AB. The company's strong financial stability and reasonable valuation are offset by bearish technical indicators and challenges in revenue growth and cash flow generation. The lack of earnings call data and corporate events further limits insights into future prospects.

Alleima AB Business Overview & Revenue Model

Company Description

Alleima AB (ALLEI), formerly known as Sandvik Materials Technology, is a global leader in the development, manufacturing, and distribution of advanced stainless steels, special alloys, and industrial heating solutions. The company operates in sectors such as energy, chemical, aerospace, and medical industries, providing high-performance materials and products that enhance the sustainability and efficiency of its clients' operations. Alleima is committed to innovation and quality, leveraging its extensive expertise to deliver solutions that meet the demanding needs of diverse industrial applications.

How the Company Makes Money

Alleima makes money through the sale of its advanced materials and industrial heating products, which are primarily used in critical applications across various industries. Its revenue model is largely based on long-term contracts and direct sales to businesses in sectors such as energy, chemical processing, aerospace, and healthcare. Key revenue streams include the production and sale of stainless steel and special alloy tubes, wires, and strips, as well as heating systems and components. Additionally, the company benefits from strategic partnerships and collaborations that enhance its product offerings and expand its market reach. Factors such as ongoing technological advancements, a focus on sustainable solutions, and a strong global presence also contribute significantly to Alleima's earnings.

Alleima AB Financial Statement Overview

Summary

Alleima AB shows strong financial health with solid profitability, efficient asset management, and robust cash flows. The company has low leverage and high equity, indicating financial stability. However, there are concerns about declining gross profit and free cash flow growth, which need management's attention.

Income Statement

Alleima AB's income statement demonstrates healthy profitability and growth. The gross profit margin stands at 21.73%, and the net profit margin at 7.78%, indicating solid profitability. The company exhibits a strong revenue growth rate of 2.08% TTM, with an impressive EBIT margin of 9.31% and EBITDA margin of 14.97%, underscoring operational efficiency. However, there has been a slight decline in gross profit compared to previous years, which could be a potential risk if trends continue.

Balance Sheet

The balance sheet reflects financial stability with a favorable debt-to-equity ratio of 0.08, suggesting low leverage. The return on equity is robust at 9.33%, demonstrating efficient use of equity to generate profits. Furthermore, the equity ratio is 70.85%, highlighting a strong asset base supported by substantial equity. The company's low debt levels mitigate financial risk and provide a buffer against economic fluctuations.

Cash Flow

Cash flow analysis reveals solid cash generation capabilities. The operating cash flow to net income ratio is 1.38, indicating strong cash conversion from earnings. Despite a slight decline in free cash flow to net income ratio to 0.57, the free cash flow growth rate is negative at -4.42%, which could signal challenges in sustaining cash generation if not addressed. Nonetheless, operating cash flows remain positive, supporting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.51B	19.69B	20.67B	18.41B	13.85B	13.93B
Gross Profit	3.93B	3.95B	4.58B	4.71B	3.47B	2.50B
EBITDA	2.71B	2.53B	3.06B	2.84B	2.43B	1.25B
Net Income	1.13B	1.22B	1.57B	1.47B	1.21B	390.00M
Balance Sheet
Total Assets	23.08B	23.85B	23.00B	23.40B	19.89B	16.59B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.91B	1.59B	892.00M	1.66B	179.00M
Total Debt	1.34B	461.00M	509.00M	401.00M	1.84B	456.00M
Total Liabilities	6.62B	7.23B	7.26B	7.50B	8.13B	6.23B
Stockholders Equity	16.46B	16.61B	15.73B	15.90B	11.66B	10.32B
Cash Flow
Free Cash Flow	704.00M	928.00M	1.41B	9.00M	657.00M	1.15B
Operating Cash Flow	2.04B	2.12B	2.23B	687.00M	1.15B	1.67B
Investing Cash Flow	-1.43B	-1.19B	-988.00M	-968.00M	-507.00M	-533.00M
Financing Cash Flow	-723.00M	-660.00M	-503.00M	-341.00M	1.44B	-3.13B

Alleima AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.45
• 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:ALLEI, the sentiment is Negative. The current price of 69.45 is below the 20-day moving average (MA) of 71.63, below the 50-day MA of 75.93, and below the 200-day MA of 77.65, indicating a bearish trend. The MACD of -2.38 indicates Positive momentum. The RSI at 37.71 is Neutral, neither overbought nor oversold. The STOCH value of 31.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ALLEI.

Alleima AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	kr27.06B	8.15	-7.45%	3.62%	6.12%	-105.14%
SSAB.A	61 Neutral	kr56.48B	12.71	6.67%	4.52%	-10.87%	-55.90%
SSAB.B	61 Neutral	kr56.48B	12.45	6.67%	4.65%	-10.87%	-55.90%
ALLEI	60 Neutral	kr17.39B	15.36		3.30%	-1.25%	-7.77%
BEGR	49 Neutral	kr440.13M	―	-44.78%	―	-14.19%	-546.83%

Alleima AB Corporate Events

Alleima AB Reports Resilient Q2 2025 Amid Market Challenges

Alleima AB’s Q2 2025 financial results reveal a challenging quarter with an 11% decline in revenues and a 23% drop in adjusted operating profit due to currency headwinds and lower demand in certain segments. Despite these challenges, the company demonstrated resilience with a strong EBIT margin, ongoing growth investments, and a positive outlook in key segments like Nuclear and Medical, while planning strategic maintenance and improvements to enhance productivity.

Alleima’s Head of Investor Relations to Depart for Husqvarna

Alleima announced that Emelie Alm, the Head of Investor Relations, will be leaving the company to join Husqvarna Group. Alm, who has been with Alleima since 2021, played a significant role in the company’s spin-off and listing, as well as in establishing its investor relations function. The recruitment process for her successor is underway, and her departure is seen as a notable change in the company’s leadership team, potentially impacting its investor relations strategy.

Alleima and Danieli to Revolutionize DRI Production with Electric Heating Technology

Alleima’s Kanthal division, in collaboration with Danieli, is set to supply the first electric process gas heater for commercial use in Direct Reduced Iron (DRI) production at Emsteel’s plant in Abu Dhabi. This pilot project, based on Prothal® DH technology, aims to enhance energy efficiency and significantly reduce CO2 emissions, marking a crucial step towards emission-free ironmaking. The strategic partnership between Kanthal and Danieli, established in 2024, focuses on developing electric heating solutions for DRI plants, potentially transforming the industry by enabling retrofitting of existing plants and achieving substantial emission reductions.