Arise AB (ARISE) AI Stock Analysis

• Market Cap: kr1.95B
• Dividend Yield: 2.85%
• Average Volume (3M): 191.95K
• Price to Earnings (P/E): 101.4
• Beta (1Y): 0.76
• 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: 517,256
• 30 Day Avg. Volume: 191,947
• 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: Negative
• RSI: Negative
• STOCH: Negative

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 33.78, below the 50-day MA of 32.30, and below the 200-day MA of 33.76, indicating a bullish trend. The MACD of 2.69 indicates Negative momentum. The RSI at 78.84 is Negative, neither overbought nor oversold. The STOCH value of 97.93 is Negative, 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%
ARISE	55 Neutral	kr1.95B	101.39	0.94%	2.85%	-3.73%	-91.74%
ORRON	51 Neutral	kr1.31B	-3.52	-9.16%	―	-3.20%	-2418.83%
MINEST	44 Neutral	€192.86M	―	-5.97%	―	-100.00%	31.68%

Arise AB Corporate Events

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.

The most recent analyst rating on (SE:ARISE) stock is a Hold with a SEK36.00 price target. To see the full list of analyst forecasts on Arise AB stock, see the SE:ARISE Stock Forecast page.

Arise Secures Major Wind Farm Asset Management Contract

Arise AB has secured its largest asset management contract to date, managing a portfolio of wind farms totaling 350 MW across Sweden, Norway, and Finland. This agreement, co-owned by Energy Infrastructure Partners and Fortum, enhances Arise’s position as a leading asset manager in the Nordic region, leveraging its expertise to ensure efficient operations and optimization of the wind farms.