Ambea AB (AMBEA) AI Stock Analysis

• Market Cap: kr8.89B
• Dividend Yield: 1.89%
• Average Volume (3M): 190.39K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.63
• Revenue Growth: 5.86%
• EPS Growth: 33.17%
• Country: SE
• Employees: 38,000
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Medical - Care Facilities
• EPS (TTM): 1.87
• Shares Outstanding: 84,101,290
• 10 Day Avg. Volume: 118,775
• 30 Day Avg. Volume: 190,386
• PEG Ratio: 3.73
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.49
• 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: kr145.60
• Price Target Upside: 33.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: kr119.00 ▲(9.48%Upside)

Ambea AB's overall stock score reflects its strong financial performance, characterized by revenue growth and effective cash flow management. However, high leverage is a notable risk. Technical analysis shows a neutral trend with potential for upward movement, although not strongly indicated. The valuation is decent with a fair P/E ratio and moderate dividend yield. No recent earnings call or corporate events were factored into this score.

Ambea AB Business Overview & Revenue Model

Company Description

Ambea AB is a leading provider of care services in the Nordic region, primarily operating in Sweden, Norway, and Denmark. The company focuses on delivering high-quality and sustainable care services through its various sectors, including elderly care, disability care, and social psychiatry services. Ambea operates under several brands, such as Vardaga, Nytida, and Klara, offering a range of services from residential care facilities to support for individuals with special needs.

How the Company Makes Money

Ambea AB generates revenue through the provision of care services across multiple sectors. The company's primary revenue streams include government contracts and agreements for providing public care services, private customer payments for care services, and partnerships with healthcare and social service providers. Ambea's business model typically involves long-term contracts with municipalities and other governmental bodies, ensuring a steady and predictable income stream. Additionally, the company generates income from training and staffing services in the healthcare sector. Ambea's focus on quality care and efficiency in service delivery contributes significantly to its financial performance.

Ambea AB Financial Statement Overview

Summary

Ambea AB's financial performance is robust, with strong revenue growth and high profitability margins. The company's operational efficiency is evident from its EBIT and EBITDA margins. Despite high leverage, the strong cash flow offsets potential risks, maintaining a healthy financial position.

Income Statement

Ambea AB has demonstrated a strong revenue growth trajectory, with a notable increase of 6.63% from 2023 to 2024. The gross profit margin is exceptionally high at 96.54% for 2024, indicating efficient cost management. The net profit margin has also improved to 4.37%, reflecting enhanced profitability. EBIT margin and EBITDA margin are robust at 9.00% and 18.62%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet shows a stable financial position with a modest increase in stockholders' equity. The debt-to-equity ratio stands at 2.22, indicating a relatively high leverage, but manageable given the company's revenue growth. Return on Equity is strong at 12.44%, reflecting effective use of equity. The equity ratio is reasonable at 27.00%, ensuring some level of financial stability.

Cash Flow

Ambea AB has shown strong cash flow performance with a free cash flow growth rate of 20.00% from 2023 to 2024. The operating cash flow to net income ratio is impressive at 3.33, indicating robust cash generation from operations. The free cash flow to net income ratio is also strong at 3.14, suggesting healthy cash conversion from profits.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.20B	13.31B	12.63B	11.48B	11.08B
	Gross Profit
13.70B	3.44B	12.19B	11.06B	10.72B
	EBIT
1.28B	981.00M	843.00M	598.00M	717.00M
	EBITDA
2.64B	2.28B	2.04B	1.65B	1.61B
	Net Income Common Stockholders
620.00M	455.00M	366.00M	237.00M	359.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.00M	6.00M	259.00M	86.00M	25.00M
	Total Assets
18.48B	17.89B	17.88B	16.67B	14.72B
	Total Debt
11.05B	10.74B	10.96B	9.89B	8.40B
	Net Debt
11.03B	10.74B	10.70B	9.81B	8.38B
	Total Liabilities
13.49B	12.97B	13.19B	12.14B	10.39B
	Stockholders Equity
4.99B	4.92B	4.68B	4.53B	4.33B
Cash Flow		Free Cash Flow
1.95B	1.62B	1.33B	1.11B	1.27B
	Operating Cash Flow
2.07B	1.71B	1.44B	1.21B	1.39B
	Investing Cash Flow
-358.00M	-93.00M	-214.00M	-258.00M	-226.00M
	Financing Cash Flow
-1.69B	-1.88B	-1.04B	-882.00M	-1.18B

Ambea AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.70
• 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 108.7 is above the 20-day moving average (MA) of 107.67, above the 50-day MA of 107.66, and above the 200-day MA of 97.52, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 61.28 is Neutral, neither overbought nor oversold. The STOCH value of 47.75 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	78 Outperform	kr8.32B	11.29	11.91%	2.01%	13.81%	31.44%
AMBEA	72 Outperform	kr8.89B	15.17	12.49%	1.89%	5.86%	33.17%
HUM	68 Neutral	kr1.93B	9.74	6.38%	2.63%	8.43%	24.08%
Sector *	65 Neutral	$8.88B	15.01	4.76%	203.76%	3.54%	-2.49%
MSON.B	62 Neutral	kr1.28B	33.60	1.23%	2.32%	-0.35%	―
AINO	29 Underperform	€55.64M	―		―	0.10%	41.59%

Ambea AB Corporate Events

Ambea AB Announces Changes in Share Structure

Ambea AB has announced changes in its number of shares and votes due to the exercise of warrants by senior executives and key employees, as well as the cancellation of 6,000,000 shares. This adjustment results in a total of 84,101,290 shares and votes, with a registered share capital of SEK 2,376,632.862076. These changes reflect Ambea’s ongoing financial restructuring efforts and could impact its market positioning and shareholder value.

Ambea AB Annual General Meeting Approves Key Proposals and Dividend

Ambea AB’s Annual General Meeting approved several key proposals, including a dividend of SEK 2.20 per share, re-election of board members, and authorization for share repurchase and issuance. The meeting also noted the failure to pass a long-term incentive program for executives, highlighting strategic decisions impacting the company’s governance and financial strategies.

Ambea AB Expands Nordic Presence with Finnish Acquisition

Ambea AB reported a 5% increase in net sales for the first quarter of 2025, driven by organic growth and strategic acquisitions, including the entry into the Finnish market through the acquisition of Validia. This expansion is expected to enhance Ambea’s Nordic growth and strengthen its position in the healthcare sector, particularly in residential care and support services for people with disabilities.