Arla Plast AB (ARPL) AI Stock Analysis

• Market Cap: kr971.37M
• Dividend Yield: 3.17%
• Average Volume (3M): 33.00K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.38
• Revenue Growth: 16.31%
• EPS Growth: 22.59%
• Country: SE
• Employees: 350
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.95
• Shares Outstanding: 20,980,000
• 10 Day Avg. Volume: 22,920
• 30 Day Avg. Volume: 32,998
• PEG Ratio: -1.18
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 0.00
• 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): 4.39
• Revenue Forecast (FY): kr1.71B

• Rating: 63 Neutral
• Price Target: kr47.00 ▼(-5.24% Downside)
• Action: Downgraded Date: 02/20/26
• Date: Action: Downgraded 02/20/26

The score is driven mainly by solid underlying financial performance but with a notable 2025 deterioration (free cash flow dropping to zero and higher debt). Technicals are a clear drag due to a broad downtrend and negative momentum, while valuation and dividend yield provide meaningful support.

Positive Factors

Consistent Profitability

Sustained positive net income and a multi-year step-up in scale imply the core business generates recurring profits and has grown operating capacity. That durability supports reinvestment, creditworthiness, and the firm's ability to absorb cyclical shocks over the next several months.

Strong Historical Cash Generation

Consistent operating cash flow and several years of strong free cash flow indicate the business converts earnings into cash reliably. This underpins the company's ability to fund capex, service obligations, and dividends, providing resilience through near-term headwinds.

Healthy Balance Sheet (pre-2025)

A substantial equity base and historically low leverage provide financial flexibility, lower refinancing risk, and capacity to absorb temporary setbacks. This structural strength supports long-term stability and allows management room to execute strategic moves without immediate funding pressure.

Negative Factors

Free Cash Flow Collapse in 2025

A complete loss of free cash flow eliminates internal funding for investments, debt reduction, or dividends and forces reliance on external financing. If this persists beyond a few quarters it meaningfully raises refinancing, liquidity, and operational risk until cash conversion recovers.

Jump in Total Debt (2025)

A material increase in total debt weakens balance-sheet flexibility, raises interest and covenant exposure, and compounds risk from falling free cash flow. Higher leverage can constrain strategic options and increase default risk if earnings or cash conversion do not rebound.

Softening Revenue and Margins

A declining top line and moderating margins suggest structural pressures on pricing, mix, or cost control. Persistent top-line weakness and margin erosion will impair sustainable earnings power and free cash generation, limiting the company's ability to rebuild buffers without strategic change.

Arla Plast AB Business Overview & Revenue Model

Company Description

Arla Plast AB, through its subsidiary, Arla Plast s.r.o., produces and supplies extruded plastic sheets in Sweden, Germany, the Czech Republic, Poland, rest of Europe, and internationally. It offers transparent polycarbonate for use in safety glasses, vehicle windows, and ice hockey rinks, as well as for machine glazing, sound walls, protective barriers, and pool covers; opaque polycarbonate for use in suitcases, wall cladding, packaging, and vehicles; and multiwall polycarbonate sheets for use in greenhouses, verandas, pool covers, roof lights, and various other construction-related products. The company was incorporated in 1969 and is headquartered in Borensberg, Sweden.

How the Company Makes Money

Arla Plast AB generates revenue primarily through the sale of its plastic sheet products to various industries, including construction and automotive. The company's revenue model is based on direct sales to manufacturers, wholesalers, and distributors, as well as partnerships with key players in the construction and automotive sectors. Key revenue streams include bulk orders for construction projects, custom orders for specialized applications, and ongoing supply contracts with industrial clients. Additionally, Arla Plast AB benefits from its commitment to sustainability, which appeals to environmentally conscious consumers and businesses, potentially leading to increased market demand. The company's focus on innovation and product development allows it to maintain a competitive edge, further contributing to its earnings.

Arla Plast AB Financial Statement Overview

Summary

Overall fundamentals are solid (consistent profitability and historically strong cash conversion, with moderate leverage through 2024). The latest year adds meaningful caution: revenue and profits dipped, total debt jumped, and free cash flow fell to zero, increasing near-term financial risk.

Income Statement

Profitability is solid for the period shown, with net income remaining positive each year and a clear step-up in scale from 2022 to 2024. However, momentum softened in the latest year: 2025 revenue declined (-2.4%) and profits edged down versus 2024. Margins also look to have peaked earlier (stronger in 2020–2021) and then moderated, suggesting some pressure from pricing, mix, or costs.

Balance Sheet

The balance sheet appears generally healthy with a large equity base and moderate leverage in the years where leverage is provided (debt-to-equity in the ~0.13–0.25 range from 2020–2024). Equity has grown over time, supporting resilience. The main watch item is the jump in total debt in 2025 versus 2024, which may reduce flexibility if profitability continues to cool.

Cash Flow

Cash generation has been a strength historically, with operating cash flow consistently positive and generally supportive of earnings (and strong free cash flow in 2022–2024). The key concern is 2025, where free cash flow drops to zero and free cash flow growth is -100%, implying a sharp swing likely driven by higher investment or working-capital needs. That step-down meaningfully increases near-term cash-flow risk despite still-healthy operating cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.43B	1.40B	1.02B	957.75M	927.49M
Gross Profit	327.50M	299.50M	219.30M	148.71M	180.51M
EBITDA	113.80M	166.30M	133.80M	88.68M	124.72M
Net Income	88.30M	97.90M	66.90M	34.40M	68.11M
Balance Sheet
Total Assets	993.00M	982.80M	785.20M	735.98M	646.64M
Cash, Cash Equivalents and Short-Term Investments	183.50M	162.30M	176.10M	47.94M	18.57M
Total Debt	206.90M	145.00M	94.70M	124.67M	63.08M
Total Liabilities	307.00M	338.10M	216.80M	235.98M	176.85M
Stockholders Equity	686.00M	644.70M	568.40M	500.00M	469.79M
Cash Flow
Free Cash Flow	0.00	149.30M	159.10M	69.30M	13.10M
Operating Cash Flow	183.00M	166.00M	165.50M	86.73M	47.69M
Investing Cash Flow	-36.20M	-108.70M	-6.40M	-63.51M	-34.59M
Financing Cash Flow	-117.50M	-76.40M	-24.00M	3.75M	-19.15M

Arla Plast AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.60
• 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:ARPL, the sentiment is Negative. The current price of 49.6 is above the 20-day moving average (MA) of 46.63, above the 50-day MA of 47.61, and below the 200-day MA of 52.05, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 74.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ARPL.

Arla Plast AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARPL	63 Neutral	kr971.37M	11.00	14.99%	3.17%	16.31%	22.59%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NEXAM	45 Neutral	kr244.96M	-11.70	-7.96%	―	-1.89%	-59.17%
BEGR	43 Neutral	kr478.11M	-0.68	-46.11%	―	-15.98%	-2831.45%
ORGC	42 Neutral	kr184.26M	-4.82	-75.16%	―	-18.29%	-48.74%

Arla Plast AB Corporate Events

Arla Plast Delivers Strong Cash Flow and Net Cash Position Amid Softer Markets in 2025

Arla Plast reported 2025 net sales of SEK 1,433 million, up 3% despite weaker comparable segments, with operating profit almost flat at SEK 115 million and a slightly lower operating margin of 8%. Profit fell 10% to SEK 88.3 million, but strong cash flow improved solvency, turned the group to a net cash position of SEK 41.7 million and supported a higher proposed dividend of SEK 1.60 per share.

Fourth-quarter sales declined 10% as lower raw material prices, currency effects and price competition weighed on revenue, even as an improved product mix in high-optical sheets lifted gross margins. The acquisition of Finnish processor Aikolon Oy and ongoing investments in new capacity and modernization across its European segments strengthen Arla Plast’s role in high-optical products and support its market position, despite a hesitant demand environment in construction and automotive.

The most recent analyst rating on (SE:ARPL) stock is a Buy with a SEK58.00 price target. To see the full list of analyst forecasts on Arla Plast AB stock, see the SE:ARPL Stock Forecast page.

Arla Plast Sets Date for 2025 Year-End Report and Investor Presentation

Arla Plast AB will publish its year-end report for 2025 on 19 February 2026 at 08:00 CET, followed by a digital conference at 10:00 CET where President and CEO Christian Krichau and CFO Mikael Friman will present and comment on the financial results. The report, together with presentation materials, will be made available on the company’s website, and investors and other stakeholders can request access to the online conference to gain timely insight into the company’s performance and outlook.

The event underscores Arla Plast’s efforts to maintain active communication with the capital market and its broader stakeholder base, reflecting governance standards expected of a listed industrial group on Nasdaq Stockholm’s Small Cap. By organizing a dedicated digital presentation for its 2025 results, the company aims to enhance transparency around its operations in the technical plastics segment, potentially supporting investor confidence and informing market perceptions of its competitive positioning and financial health.

The most recent analyst rating on (SE:ARPL) stock is a Buy with a SEK58.00 price target. To see the full list of analyst forecasts on Arla Plast AB stock, see the SE:ARPL Stock Forecast page.