AQ Group AB (AQ) AI Stock Analysis

• Market Cap: kr17.47B
• Dividend Yield: 0.84%
• Average Volume (3M): 182.69K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 1.25
• 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: 186,650
• 30 Day Avg. Volume: 182,688
• PEG Ratio: 3.70
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 12.69
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: kr204.00 ▲(7.14% Upside)

AQ Group AB's overall stock score reflects its strong financial performance, which is the most significant factor. However, the technical analysis indicates mixed market sentiment, and the valuation suggests the stock may be overvalued. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective business strategies, supporting long-term financial stability and expansion.

Balance Sheet Health

A low debt-to-equity ratio reflects conservative financial management, providing flexibility for future investments and resilience against economic downturns.

Profitability

High profitability margins demonstrate efficient operations and pricing power, which are crucial for sustaining competitive advantages and funding growth initiatives.

Negative Factors

Free Cash Flow Challenges

Challenges in free cash flow generation can limit the company's ability to invest in new projects or return capital to shareholders, impacting long-term growth potential.

Margin Pressure

Decreasing margins may indicate rising costs or competitive pressures, which could erode profitability if not addressed through cost management or pricing strategies.

Cash Flow to Net Income Ratio

A lower free cash flow to net income ratio suggests that not all earnings are translating into cash, which could affect liquidity and the ability to fund operations or growth.

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

AQ Group AB demonstrates strong financial health with robust revenue growth and profitability metrics. The balance sheet is solid with low leverage, and the company effectively utilizes its equity. However, the declining trend in free cash flow growth and slight pressure on operating margins warrant careful monitoring.

Income Statement

AQ Group AB shows strong revenue growth in the TTM period with a 1.9% increase, following a slight decline in the previous year. The company maintains healthy gross and net profit margins, with a TTM gross profit margin of 50.9% and a net profit margin of 7.5%. The EBIT and EBITDA margins are also robust at 9.5% and 13.2%, respectively, indicating efficient operational management. However, the slight decline in EBIT margin from the previous year suggests some pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.15 in the TTM period, indicating conservative leverage. The return on equity remains stable at around 15.1%, showcasing effective use of equity to generate profits. The equity ratio stands at a healthy level, suggesting a strong capital structure. However, the slight increase in debt levels over the years could pose a risk if not managed carefully.

Cash Flow

AQ Group AB's cash flow statement reveals a decline in free cash flow growth by 4.5% in the TTM period, which could be a concern for future liquidity. The operating cash flow to net income ratio is 0.65, indicating adequate cash generation relative to net income. The free cash flow to net income ratio of 0.79 suggests that a significant portion of earnings is converted into free cash flow, although the declining trend in free cash flow growth needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.87B	8.55B	8.97B	7.05B	5.47B	4.82B
Gross Profit	3.63B	4.29B	741.00M	3.29B	2.67B	2.36B
EBITDA	1.17B	1.16B	1.08B	769.00M	691.00M	621.21M
Net Income	663.00M	665.00M	632.00M	410.00M	366.00M	315.00M
Balance Sheet
Total Assets	6.86B	6.57B	5.96B	5.70B	4.70B	3.86B
Cash, Cash Equivalents and Short-Term Investments	965.00M	919.00M	426.00M	231.00M	283.00M	451.55M
Total Debt	536.00M	635.00M	717.00M	1.04B	844.00M	796.71M
Total Liabilities	2.27B	2.16B	2.20B	2.52B	2.07B	1.67B
Stockholders Equity	4.57B	4.39B	3.74B	3.16B	2.62B	2.18B
Cash Flow
Free Cash Flow	853.00M	1.01B	727.00M	-80.00M	46.00M	486.49M
Operating Cash Flow	1.09B	1.20B	980.00M	208.00M	238.00M	608.71M
Investing Cash Flow	-325.00M	-265.00M	-252.00M	-283.00M	-391.00M	-136.71M
Financing Cash Flow	-599.00M	-448.00M	-528.00M	12.00M	-26.00M	-169.49M

AQ Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 190.40
• 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:AQ, the sentiment is Positive. The current price of 190.4 is above the 20-day moving average (MA) of 187.33, above the 50-day MA of 185.53, and above the 200-day MA of 179.35, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 56.31 is Neutral, neither overbought nor oversold. The STOCH value of 54.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	kr17.76B	25.71	11.96%	1.58%	2.11%	13.90%
AFRY	69 Neutral	kr16.36B	17.74	6.97%	4.13%	-3.73%	-22.34%
AQ	68 Neutral	kr17.47B	26.28	15.15%	0.84%	2.60%	3.05%
ALIG	65 Neutral	kr15.23B	21.62	9.59%	2.11%	-1.74%	26.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BUFAB	62 Neutral	€19.26B	32.67	15.33%	1.04%	-1.37%	14.78%
BERG.B	48 Neutral	€8.47B	-117.00	-3.67%	1.27%	4.65%	-136.09%

AQ Group AB Corporate Events

AQ Group AB Appoints Nominating Committee for 2026 AGM

AQ Group AB has announced the appointment of its Nominating Committee ahead of the Annual General Meeting scheduled for April 23, 2026, in Västerås. The committee, consisting of representatives from major shareholders and individual holdings, will be responsible for evaluating the Board of Directors and proposing key decisions such as board elections and remuneration. This strategic move is expected to ensure effective governance and align the company’s leadership with its long-term goals, potentially impacting its market positioning and stakeholder interests.