Ambea AB (AMBEA) AI Stock Analysis

• Market Cap: €10.90B
• Dividend Yield: 1.59%
• Average Volume (3M): 135.59K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.63
• Revenue Growth: 10.83%
• EPS Growth: 16.24%
• Country: SE
• Employees: 38,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 3.88
• Shares Outstanding: 84,101,290
• 10 Day Avg. Volume: 127,005
• 30 Day Avg. Volume: 135,589
• PEG Ratio: 0.32
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 4.26
• 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: 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: 65 Neutral
• Price Target: kr134.00 ▼(-4.29% Downside)

Ambea AB's overall stock score is driven by solid financial performance and a strong technical trend, although the stock appears overbought. The valuation is reasonable but offers limited dividend income. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Ambea's services, supporting long-term business expansion and market presence.

Profitability Margins

High profitability margins reflect efficient operations and pricing power, contributing to sustainable financial health and competitive advantage.

Cash Generation

Strong cash generation relative to profits ensures liquidity, enabling reinvestment in growth opportunities and financial stability.

Negative Factors

High Leverage

Significant leverage poses financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.

Cash Flow Constraints

Low operating cash flow relative to earnings may constrain liquidity, affecting the ability to fund operations and growth initiatives.

Declining Gross Margin

A declining gross margin could indicate rising costs or pricing pressures, potentially impacting future profitability and competitiveness.

Ambea AB Business Overview & Revenue Model

Company Description

Ambea AB (publ) provides housing, support, education, and personnel for health and social care for the elderly and people with disabilities in Sweden, Norway, and Denmark. The company operates through Nytida, Vardaga, Stendi, Altiden, and Klara segments. The Nytida segment comprises residential facilities, support for individuals and families, schools for children, young people and adults with disabilities or psychosocial problems, and day services. The Vardaga segment offers nursing homes, short-term residential facilities, home care, and day services for elderly people. The Stendi segment provides for children, young people, adults by offering personal assistance, residential care, elderly care, and home care. The Altiden segment comprises operations in elderly care, home care, social care, and disability care. The Klara segment offers subscription services for ambulatory care teams; and a supply of temporary doctors and nurses. Ambea AB (publ) was founded in 1996 and is headquartered in Solna, Sweden.

How the Company Makes Money

Ambea AB generates revenue primarily through government contracts and funding for its care services. The company receives payments from municipal and regional authorities for the provision of healthcare and social services, which form the bulk of its revenue stream. Additionally, Ambea may generate income through private pay clients who choose to utilize its services outside of government funding. The company also benefits from economies of scale by operating multiple care facilities, which allows it to optimize costs and improve service delivery. Significant partnerships with local governments and healthcare organizations enhance its ability to secure contracts and expand its service offerings, further contributing to its earnings.

Ambea AB Financial Statement Overview

Summary

Ambea AB demonstrates solid financial performance with consistent revenue growth and strong profitability margins. However, the high leverage and moderate cash flow ratios highlight areas for improvement. The company should focus on managing its debt levels and enhancing cash flow efficiency to sustain long-term growth.

Income Statement

Ambea AB shows a solid revenue growth rate of 3.75% in the TTM, with a consistent increase over the past years. The gross profit margin remains strong at 78.49%, although it has decreased from previous years. Net profit margin is stable at 4.18%, indicating profitability, but there's room for improvement. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company has a high debt-to-equity ratio of 2.73, indicating significant leverage, which could pose a risk if not managed carefully. Return on equity is decent at 12.70%, showing effective use of equity. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Free cash flow growth is positive at 4.96%, and the free cash flow to net income ratio is strong at 0.93, indicating good cash generation relative to profits. However, the operating cash flow to net income ratio is relatively low at 0.41, suggesting potential constraints in cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.48B	14.20B	13.31B	12.63B	11.48B	11.08B
Gross Profit	11.49B	2.44B	3.44B	12.19B	11.06B	10.72B
EBITDA	2.85B	2.61B	2.28B	2.04B	1.61B	1.61B
Net Income	680.00M	620.00M	455.00M	366.00M	237.00M	359.00M
Balance Sheet
Total Assets	21.21B	18.48B	17.89B	17.88B	16.67B	14.72B
Cash, Cash Equivalents and Short-Term Investments	259.00M	28.00M	6.00M	259.00M	86.00M	25.00M
Total Debt	13.39B	11.05B	10.74B	10.96B	9.89B	8.40B
Total Liabilities	15.85B	13.49B	12.97B	13.19B	12.14B	10.39B
Stockholders Equity	5.36B	4.99B	4.92B	4.68B	4.53B	4.33B
Cash Flow
Free Cash Flow	1.86B	1.95B	1.62B	1.33B	1.11B	1.27B
Operating Cash Flow	2.00B	2.07B	1.71B	1.44B	1.21B	1.39B
Investing Cash Flow	-1.46B	-358.00M	-93.00M	-214.00M	-258.00M	-226.00M
Financing Cash Flow	-324.00M	-1.69B	-1.88B	-1.04B	-882.00M	-1.18B

Ambea AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 140.00
• 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:AMBEA, the sentiment is Positive. The current price of 140 is above the 20-day moving average (MA) of 134.01, above the 50-day MA of 129.36, and above the 200-day MA of 119.34, indicating a bullish trend. The MACD of 1.81 indicates Negative momentum. The RSI at 63.58 is Neutral, neither overbought nor oversold. The STOCH value of 73.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:AMBEA.

Ambea AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	79 Outperform	kr9.69B	11.84	12.65%	2.30%	9.02%	29.93%
ATT	71 Outperform	kr12.06B	18.20	―	1.50%	2.96%	73.50%
HUM	71 Outperform	kr2.57B	10.56	7.53%	2.03%	2.11%	92.69%
AMBEA	65 Neutral	€10.90B	16.95	13.39%	1.59%	10.83%	16.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Ambea AB Corporate Events

Nytida Expands with Acquisition of Serigmo Invest’s Care Operations

Nytida, a part of the Ambea Group, has signed an agreement to acquire LSS and short-term care operations from Serigmo Invest Holding AB, including Serigmo Care KÅS AB and Villa Arelid AB. This acquisition, set to close on December 1, 2025, is expected to enhance Nytida’s service offerings in Enköping, Alingsås, and Vallentuna, with the acquired companies reporting combined revenues of SEK 45 million in 2024.

Ambea AB Reports Strong Q3 2025 Growth and Strategic Moves

Ambea AB reported a significant increase in net sales and profit for the third quarter of 2025, driven by both organic and acquired growth. The acquisition of Validia in Finland and a new loan agreement are expected to strengthen Ambea’s market position and financial flexibility, indicating positive implications for stakeholders.

Ambea: Leading Quality Care in Scandinavia

Ambea’s commitment to quality care and its extensive operations across the Nordic region position it as a key player in the Scandinavian care industry. The company’s focus on improving individual lives aligns with its vision and strengthens its market presence, benefiting stakeholders and care recipients alike.

Ambea Adopts New Long-Term Incentive Program

During the Extraordinary General Meeting on November 4, 2025, Ambea AB resolved to adopt a new long-term incentive program for senior executives and key employees, consisting of warrants without subsidizing their acquisition. This decision reflects Ambea’s strategic focus on aligning the interests of key personnel with the company’s long-term goals, potentially impacting its operational efficiency and stakeholder engagement.

Ambea Expands in Finland with Acquisition of Attendo’s Child Welfare Services

Ambea, through its Finnish subsidiary Validia, has agreed to acquire Attendo’s child welfare and family care services in Finland, expanding its core offerings in the region. This acquisition includes five care units and aims to enhance Ambea’s position as a quality leader in the care sector, with expected positive earnings impact from 2026.

Ambea AB Announces Extraordinary General Meeting for November 2025

Ambea AB has announced an Extraordinary General Meeting scheduled for November 4, 2025, at its headquarters in Solna, Sweden. The meeting will address shareholder participation and voting procedures, emphasizing the need for shareholders to register and vote in advance or through proxies. This meeting is significant for stakeholders as it ensures shareholder engagement and decision-making in the company’s governance.