AQ Group AB (AQ) AI Stock Analysis

• Market Cap: kr16.42B
• Dividend Yield: 0.89%
• Average Volume (3M): 182.68K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.97
• Revenue Growth: 2.60%
• EPS Growth: 3.05%
• Country: SE
• Employees: 7,733
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.68
• Shares Outstanding: 91,732,790
• 10 Day Avg. Volume: 187,922
• 30 Day Avg. Volume: 182,679
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr205.03
• Price Target Upside: 14.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: kr205.00 ▲(14.53% Upside)

The overall stock score of 68 reflects AQ Group AB's strong financial performance, particularly in revenue growth and profitability, which is the most significant factor. However, technical analysis indicates potential short-term bearish momentum, and the valuation suggests the stock is relatively expensive. The absence of earnings call data and notable corporate events means these factors do not influence the score.

AQ Group AB Business Overview & Revenue Model

Company Description

AQ Group AB (publ) manufactures and sells components and systems for industrial customers in Sweden, rest of European countries, and internationally. It operates in two segments, Component and System. The company provides electric cabinets for the food industry, automatic teller machines, control and power equipment for ship cranes, control equipment for automated handling of goods in harbors, and control systems for motors and generators; and wiring harness systems and electromechanical modules to automotive, commercial vehicle, railway, and engineering industries. It also offers thermoplastic components for automotive, medical, and engineering industries; and contract manufacturing services for sheet metal components and sheet metal assemblies for commercial vehicle, automotive, energy, railway, material handling, food and drugs, telecom, and electromechanical industries. In addition, the company provides machines and automatic equipment, including ticket machines for parking lots and travel tickets, automatic teller machines, packaging machines, and printers and passport automation systems; and transformers and inductors for use in various applications comprising motor drives, high-speed trains, solar and wind energy, marine and offshore, relay protection systems, military equipment, airplanes, and equipment for process automation. Further, it offers system solutions for the automotive industry; and mechanical engineering services for sheet metal and plastic designs. The company was incorporated in 1986 and is headquartered in Västerås, Sweden.

How the Company Makes Money

AQ Group AB generates revenue primarily through the manufacturing and sale of its diverse range of industrial products. The company's revenue model is based on long-term contracts and partnerships with key players in the automotive, power, and telecommunications industries, among others. AQ leverages its global footprint and manufacturing capabilities to deliver high-quality, custom-engineered solutions that meet specific client needs. These solutions often involve complex and high-value components, which contribute significantly to the company's earnings. Additionally, AQ's focus on innovation and efficiency in production processes helps maintain competitive pricing and profitability.

AQ Group AB Financial Statement Overview

Summary

AQ Group AB exhibits strong revenue growth and profitability, supported by a solid balance sheet with low leverage. While the income statement reflects robust margins, the cash flow statement indicates potential challenges in free cash flow generation. Overall, the company is well-positioned financially, but attention to cash flow management is advisable.

Income Statement

AQ Group AB demonstrates strong revenue growth with a TTM increase of 4.4%, and solid profitability metrics, including a gross profit margin of 50.9% and a net profit margin of 7.5%. The EBIT and EBITDA margins are healthy at 9.5% and 13.2%, respectively. However, the slight decline in EBIT and EBITDA margins compared to the previous year suggests potential cost pressures.

Balance Sheet

The company maintains a stable financial position with a low debt-to-equity ratio of 0.15, indicating conservative leverage. The return on equity is robust at 15.1%, reflecting efficient use of equity capital. However, the equity ratio stands at 64.6%, suggesting a balanced but not overly conservative capital structure.

Cash Flow

AQ Group AB's cash flow performance shows a decline in free cash flow growth by 11.3% in the TTM, which could indicate challenges in cash generation. The operating cash flow to net income ratio is 1.72, suggesting strong cash conversion, but the free cash flow to net income ratio of 0.79 highlights potential constraints in free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.71B	8.55B	8.97B	7.05B	5.47B	4.82B
Gross Profit	4.43B	4.29B	741.00M	3.29B	2.67B	2.36B
EBITDA	1.15B	1.16B	1.08B	769.00M	691.00M	621.21M
Net Income	655.00M	665.00M	632.00M	410.00M	366.00M	315.00M
Balance Sheet
Total Assets	6.88B	6.57B	5.96B	5.70B	4.70B	3.86B
Cash, Cash Equivalents and Short-Term Investments	888.00M	919.00M	426.00M	231.00M	283.00M	451.55M
Total Debt	669.00M	635.00M	717.00M	1.04B	844.00M	796.71M
Total Liabilities	2.42B	2.16B	2.20B	2.52B	2.07B	1.67B
Stockholders Equity	4.45B	4.39B	3.74B	3.16B	2.62B	2.18B
Cash Flow
Free Cash Flow	893.00M	1.01B	727.00M	-80.00M	46.00M	486.49M
Operating Cash Flow	1.13B	1.20B	980.00M	208.00M	238.00M	608.71M
Investing Cash Flow	-343.00M	-265.00M	-252.00M	-283.00M	-391.00M	-136.71M
Financing Cash Flow	-380.00M	-448.00M	-528.00M	12.00M	-26.00M	-169.49M

AQ Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 179.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AQ, the sentiment is Neutral. The current price of 179 is below the 20-day moving average (MA) of 183.18, below the 50-day MA of 188.72, and above the 200-day MA of 173.02, indicating a neutral trend. The MACD of -3.99 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 59.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:AQ.

AQ Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYSR	74 Outperform	€16.08B	24.25	11.31%	1.76%	0.74%	8.11%
AFRY	70 Neutral	$18.72B	20.04	7.17%	3.60%	-2.84%	-21.34%
AQ	68 Neutral	kr16.42B	24.71	15.15%	0.89%	2.60%	3.05%
BUFAB	65 Neutral	€17.95B	30.23	15.89%	1.12%	-4.08%	27.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALIG	62 Neutral	kr16.03B	22.05	9.98%	2.01%	-0.39%	34.10%
BERG.B	56 Neutral	€8.13B	40.20	-2.39%	1.28%	6.11%	-124.15%

AQ Group AB Corporate Events

AQ Group AB Increases Shares and Votes Through Warrant Exercise

AQ Group AB has announced an increase in its number of shares and votes due to the exercise of warrants from its 2022/2025 incentive program, raising the total shares to 91,732,790 and share capital to SEK 36,693,116. This development reflects the company’s strategic efforts to enhance its financial structure and potentially strengthen its market position, impacting stakeholders by possibly increasing shareholder value.