Arise AB (ARISE) AI Stock Analysis

• Market Cap: kr1.95B
• Dividend Yield: 2.85%
• Average Volume (3M): 224.83K
• Price to Earnings (P/E): 101.4
• Beta (1Y): 0.71
• Revenue Growth: -3.73%
• EPS Growth: -91.74%
• Country: SE
• Employees: 76
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -0.20
• Shares Outstanding: 44,494,236
• 10 Day Avg. Volume: 73,896
• 30 Day Avg. Volume: 224,834
• PEG Ratio: -0.94
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 3.33
• P/FCF Ratio: 5.62
• 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): 0.82
• Revenue Forecast (FY): kr533.33M

• Rating: 55 Neutral
• Price Target: kr30.00 ▼(-5.81% Downside)

The overall stock score for Arise AB is primarily influenced by its stable financial position and strong cash flow generation. However, the declining revenue and profitability margins, combined with bearish technical indicators and a high P/E ratio, suggest caution. The stock's high dividend yield offers some compensation, but the overall outlook remains challenging.

Positive Factors

Revenue Growth

The strong revenue growth rate reflects Arise AB's successful expansion in the renewable energy sector, enhancing its market position and supporting long-term business sustainability.

Cash Flow Improvement

Significant improvement in free cash flow indicates robust cash generation ability, providing financial flexibility for future investments and reducing reliance on external financing.

Stable Balance Sheet

A stable balance sheet with reduced leverage enhances financial stability, allowing Arise AB to withstand market fluctuations and invest in growth opportunities.

Negative Factors

Profit Margin Compression

Decreasing profit margins may indicate rising costs or pricing pressures, potentially impacting long-term profitability unless addressed through cost management or pricing strategies.

Earnings Decline

A significant decline in earnings per share suggests challenges in maintaining profitability, which could affect investor confidence and limit reinvestment capabilities.

Return on Equity

Low return on equity indicates inefficiencies in generating shareholder returns, which may necessitate strategic adjustments to improve financial performance.

Arise AB Business Overview & Revenue Model

Company Description

Arise AB (ARISE) is a Swedish renewable energy company focused on developing, owning, and operating wind and solar power projects. The company operates primarily in the renewable energy sector, contributing to sustainable energy solutions and the transition to a low-carbon economy. Arise's core offerings include the development of wind farms and solar parks, as well as asset management services for renewable energy projects, aimed at maximizing operational efficiency and profitability.

How the Company Makes Money

Arise AB generates revenue through multiple streams related to its renewable energy projects. The primary revenue source comes from the sale of electricity generated by its wind and solar parks, which is sold to energy suppliers and utilities under long-term power purchase agreements (PPAs). Additionally, the company earns income from asset management services provided to third-party investors and project owners, helping them optimize the performance of their renewable energy assets. Arise may also benefit from government incentives, subsidies, and renewable energy certificates that promote clean energy production. Strategic partnerships with other companies in the energy sector can further enhance its revenue potential by expanding its project portfolio and market reach.

Arise AB Financial Statement Overview

Summary

Arise AB demonstrates a stable financial position with strong cash flow generation and a solid balance sheet. However, the company faces challenges in revenue growth and profitability margins, which have shown a declining trend. The reduction in leverage is a positive aspect, but the company needs to address its declining revenue and profitability to enhance its financial performance.

Income Statement

Arise AB's income statement shows a mixed performance. The company has a strong gross profit margin of 77.71% in the TTM, indicating efficient cost management. However, the net profit margin has decreased significantly from 38.51% in 2024 to 17.55% in the TTM, reflecting reduced profitability. Revenue growth has been negative over the past periods, with a decline of 3.35% in the TTM, which is a concern. The EBIT and EBITDA margins have also decreased, indicating pressure on operating efficiency.

Balance Sheet

The balance sheet of Arise AB reflects a stable financial position with a debt-to-equity ratio of 0.40 in the TTM, showing a decrease from previous years, which is a positive sign of reduced leverage. The return on equity has decreased to 4.83% in the TTM from 9.63% in 2024, indicating lower profitability from shareholders' equity. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Arise AB's cash flow statement indicates strong cash generation capabilities. The free cash flow growth rate has surged by 231.45% in the TTM, showcasing significant improvement. The operating cash flow to net income ratio is 0.50, suggesting that cash generation is in line with reported earnings. However, the free cash flow to net income ratio of 0.60 indicates that not all earnings are translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	490.00M	470.00M	503.00M	1.16B	278.00M	130.00M
Gross Profit	379.00M	458.00M	225.00M	1.02B	260.00M	128.00M
EBITDA	200.00M	290.00M	326.00M	862.00M	139.00M	42.00M
Net Income	18.00M	181.00M	206.00M	772.00M	57.00M	-190.00M
Balance Sheet
Total Assets	3.13B	3.87B	3.81B	2.92B	1.51B	1.42B
Cash, Cash Equivalents and Short-Term Investments	230.00M	762.00M	917.00M	1.22B	70.00M	86.00M
Total Debt	627.00M	1.25B	1.19B	1.01B	575.00M	631.00M
Total Liabilities	1.03B	1.68B	1.60B	1.30B	835.00M	715.00M
Stockholders Equity	1.78B	1.88B	1.89B	1.62B	676.00M	703.00M
Cash Flow
Free Cash Flow	411.00M	279.00M	-195.00M	747.00M	-75.00M	31.00M
Operating Cash Flow	487.00M	279.00M	160.00M	923.00M	49.00M	65.00M
Investing Cash Flow	-254.00M	-228.00M	-539.00M	-305.00M	-30.00M	-34.00M
Financing Cash Flow	-794.00M	-238.00M	73.00M	464.00M	-36.00M	-308.00M

Arise AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ARISE, the sentiment is Positive. The current price of 31.85 is below the 20-day moving average (MA) of 43.07, below the 50-day MA of 35.91, and below the 200-day MA of 34.31, indicating a bullish trend. The MACD of 2.40 indicates Positive momentum. The RSI at 75.35 is Negative, neither overbought nor oversold. The STOCH value of 51.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ARISE.

Arise AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ORRON	57 Neutral	kr1.38B	-4.05	-9.16%	―	-3.20%	-2418.83%
ARISE	55 Neutral	kr1.95B	101.39	0.94%	2.85%	-3.73%	-91.74%
MINEST	44 Neutral	kr181.08M	-4.23	-5.97%	―	-100.00%	31.68%

Arise AB Corporate Events

Arise AB Recommends Acceptance of Aneo’s Takeover Bid

Arise AB’s independent bid committee has recommended that shareholders accept a public takeover bid from Aneo Holding AS, through Aneo BidCo, offering SEK 45 per share, valuing the offer at approximately SEK 1.8 billion. The bid represents a significant premium over recent trading prices, and Aneo BidCo has expressed no intention to make material changes to Arise’s operations or workforce, emphasizing the importance of maintaining the company’s entrepreneurial culture and local presence.

Arise AB Reports Q3 2025 Financials and Strategic Portfolio Expansion

Arise AB’s interim report for the third quarter of 2025 reveals a decline in net sales and operating profit compared to the previous year, with net sales at MSEK 88 and an operating loss of MSEK -1. Despite these challenges, the company achieved a significant increase in its project portfolio, adding approximately 500 MW in the quarter, indicating a strategic focus on long-term growth in the renewable energy sector.

Arise AB Secures EUR 30 Million Earn-out for Kölvallen Project

Arise AB has received an earn-out payment of approximately EUR 30 million for the Kölvallen project, resulting in a positive earnings impact of around EUR 3 million for the third quarter. This payment enhances Arise’s financial position and underscores its successful operations in the renewable energy sector.