AQ Group AB (AQ) AI Stock Analysis

• Market Cap: kr16.62B
• Dividend Yield: 0.83%
• Average Volume (3M): 182.69K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.20
• Revenue Growth: 2.60%
• EPS Growth: 3.05%
• Country: SE
• Employees: 7,733
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.81
• Shares Outstanding: 91,732,790
• 10 Day Avg. Volume: 186,650
• 30 Day Avg. Volume: 182,688
• PEG Ratio: 17.66
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 26.56
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 8.02
• Revenue Forecast (FY): kr9.59B

• Rating: 65 Neutral
• Price Target: kr196.00 ▲(5.72% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid underlying financial strength—especially a conservatively financed balance sheet—tempered by cash-flow variability and uneven growth. Technicals are a headwind with the stock trading below major moving averages, and valuation appears somewhat rich given the P/E and modest dividend yield.

Positive Factors

Conservative balance sheet

AQ's debt-to-equity has declined materially (from ~0.33–0.37 in 2020–2022 to ~0.12 in 2025) and equity has risen. This durable low-leverage profile supports capital allocation flexibility, downside protection in cyclical periods, and capacity to fund M&A or capex without stress.

Recurring contract-manufacturing model

AQ's focus on contract manufacturing and recurring production programs creates durable revenue streams and customer stickiness. Program-based manufacturing raises switching costs, smooths demand for capacity, and supports predictable backlog-driven cash generation over multi-quarter horizons.

Strong cash conversion and solid margins

High conversion of earnings to free cash flow (roughly 74–84%) plus mid-single digit net margins and ~8.7% EBIT / ~12.4% EBITDA in 2025 indicate the business can internally fund operations and reinvestment. This supports sustainable capital discipline and funding of growth or dividends.

Negative Factors

Volatile cash generation

Despite strong conversion in some years, intermittent negative FCF (2022) and a meaningful FCF decline in 2025 reveal execution and working-capital sensitivity. Persistent volatility limits predictable reinvestment, raises reliance on balance-sheet buffer, and complicates multi-year planning.

Uneven revenue growth

Irregular top-line performance — a down year in 2024 followed by modest 2025 growth — points to exposure to cyclical industrial demand and program timing. This diminishes visibility for capacity utilization and can pressure margins and investment timing across cycles.

Margin volatility and mix risk

Swings in gross and operating margins (including an outsized 2024 gross margin) imply earnings are sensitive to product mix, one-offs, or pricing/material-cost pass-through. Persistent margin volatility weakens earnings predictability and complicates long-term margin improvement plans.

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 through a combination of product sales and manufacturing services. The company has established key revenue streams from its core offerings, which include the production of electrical wiring harnesses, enclosures, and advanced electronic assemblies. Additionally, AQ benefits from long-term contracts with major clients in the automotive and telecom industries, ensuring a steady income flow. The company's strategic partnerships with leading firms also enhance its market position and contribute to its earnings by providing access to new technologies and customer bases. Overall, AQ's focus on innovation and efficiency in manufacturing processes allows them to maintain competitive pricing and margin growth.

AQ Group AB Financial Statement Overview

Summary

Strong balance sheet (low and improving leverage; rising equity) supports resilience, while profitability is solid but somewhat volatile. The main offsets are uneven revenue growth and variable cash flow (including a negative FCF year and a meaningful FCF decline in the latest year).

Income Statement

AQ Group shows solid profitability with net margins consistently around the mid‑single digits and EBIT/EBITDA margins generally in the high‑single to low‑teens range (2025 annual: ~8.7% EBIT margin, ~12.4% EBITDA margin). Revenue has grown well over the multi‑year period (2021–2025), but growth has been uneven with a down year in 2024 and only modest growth in 2025. A key watch item is margin volatility across years, with the 2024 gross margin notably higher than other periods, suggesting potential mix/accounting/one-off effects or reporting inconsistency versus other years.

Balance Sheet

The balance sheet looks conservatively financed: leverage is low and improving, with debt-to-equity declining from ~0.33–0.37 (2020–2022) to ~0.12 in 2025. Equity has steadily increased over time, supporting resilience and financial flexibility. Returns on equity (where provided) are healthy (low‑to‑mid teens in 2023–2024), though 2025 ROE is not provided, limiting the most recent read on profitability relative to capital.

Cash Flow

Cash generation is generally supportive, with positive free cash flow in most years and strong conversion of earnings to free cash flow in 2023–2025 (free cash flow running at ~74–84% of net income). However, cash flow has been volatile: 2022 had negative free cash flow and very weak operating cash generation versus net income, and 2025 free cash flow declined meaningfully (negative growth). The latest year still shows positive operating and free cash flow, but the variability lowers confidence in stability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.07B	8.55B	8.97B	7.05B	5.47B
Gross Profit	786.00M	4.29B	741.00M	3.29B	2.67B
EBITDA	1.12B	1.16B	1.08B	769.00M	691.00M
Net Income	676.00M	665.00M	632.00M	410.00M	366.00M
Balance Sheet
Total Assets	6.91B	6.57B	5.96B	5.70B	4.70B
Cash, Cash Equivalents and Short-Term Investments	992.00M	919.00M	426.00M	231.00M	283.00M
Total Debt	565.00M	635.00M	717.00M	1.04B	844.00M
Total Liabilities	2.22B	2.16B	2.20B	2.52B	2.07B
Stockholders Equity	4.67B	4.39B	3.74B	3.16B	2.62B
Cash Flow
Free Cash Flow	680.00M	1.01B	727.00M	-80.00M	46.00M
Operating Cash Flow	921.00M	1.20B	980.00M	208.00M	238.00M
Investing Cash Flow	-307.00M	-265.00M	-252.00M	-283.00M	-391.00M
Financing Cash Flow	-509.00M	-448.00M	-528.00M	12.00M	-26.00M

AQ Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 185.40
• 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:AQ, the sentiment is Negative. The current price of 185.4 is below the 20-day moving average (MA) of 188.98, below the 50-day MA of 188.92, and below the 200-day MA of 186.88, indicating a bearish trend. The MACD of -1.67 indicates Positive momentum. The RSI at 45.66 is Neutral, neither overbought nor oversold. The STOCH value of 77.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:AQ.

AQ Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUFAB	68 Neutral	kr20.84B	33.17	15.33%	1.03%	-1.37%	14.78%
SYSR	66 Neutral	kr16.43B	23.78	11.96%	1.55%	2.11%	13.90%
AQ	65 Neutral	kr16.62B	24.55	15.15%	0.83%	2.60%	3.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALIG	61 Neutral	kr13.37B	21.83	9.59%	2.09%	-1.74%	26.36%
AFRY	59 Neutral	kr14.55B	18.30	6.97%	4.09%	-3.73%	-22.34%
BERG.B	45 Neutral	kr7.29B	-108.16	-3.67%	1.25%	4.65%	-136.09%

AQ Group AB Corporate Events

AQ Group lifts dividend after 2025 revenue growth but margins soften

AQ Group AB reported solid growth in the fourth quarter of 2025, with net sales up 9% to SEK 2.3 billion and operating profit rising 5%, although the profit margin before tax slipped to 9.1% as cash flow from operating activities halved compared with the same period last year. For the full year, sales increased 6% to SEK 9.1 billion while operating profit was flat and margins softened, yet earnings per share edged higher, the equity ratio improved to 68%, and the board proposed raising the dividend to SEK 1.80 per share, underscoring confidence in the company’s financial position despite weaker cash generation.

The group maintained stable profitability with an EBIT margin of 9.3% for 2025 and modest growth in profit before tax, even as returns on equity and assets declined slightly versus the prior year. Staffing remained broadly steady with a slight increase in Swedish headcount, and key balance sheet metrics such as liquidity and leverage stayed strong, suggesting AQ Group is preserving financial resilience while navigating a more challenging margin environment.

The most recent analyst rating on (SE:AQ) stock is a Buy with a SEK210.00 price target. To see the full list of analyst forecasts on AQ Group AB stock, see the SE:AQ Stock Forecast page.

AQ Group Proposes Åsa Landén Ericsson as New Chair and Adds Former Systemair CEO to Board

AQ Group AB’s Nomination Committee will propose current board director Åsa Landén Ericsson as the new Chair of the Board and former Systemair CEO Roland Kasper as a new board director at the company’s Annual General Meeting on April 23, 2026, while recommending the re-election of four existing directors and confirming that founder and director Per Olof Andersson will not stand for re-election. The proposed changes bring in leadership with strong experience in listed environments, industrial technology, and decentralized global organizations, signaling a renewal of governance that aims to support AQ’s continued international growth and operational robustness, while maintaining continuity through long-term owners and current board members.

The most recent analyst rating on (SE:AQ) stock is a Buy with a SEK210.00 price target. To see the full list of analyst forecasts on AQ Group AB stock, see the SE:AQ Stock Forecast page.

AQ Group AB Advances to Nasdaq Stockholm Large Cap Segment

AQ Group AB’s shares will advance to the Nasdaq Stockholm Large Cap segment from January 2, 2026, following a review based on market capitalization. This milestone reflects the company’s successful growth journey and bolsters its position among top industrial players, showcasing exceptional performance and commitment to customer-oriented collaboration.

The most recent analyst rating on (SE:AQ) stock is a Hold with a SEK204.00 price target. To see the full list of analyst forecasts on AQ Group AB stock, see the SE:AQ Stock Forecast page.