Avensia AB (AVEN) AI Stock Analysis

• Market Cap: kr315.55M
• Dividend Yield: 5.95%
• Average Volume (3M): 7.32K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.25
• Revenue Growth: 4.24%
• EPS Growth: 44.03%
• Country: SE
• Employees: 314
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.12
• Shares Outstanding: 37,123,250
• 10 Day Avg. Volume: 5,013
• 30 Day Avg. Volume: 7,324
• PEG Ratio: -0.04
• Price to Book (P/B): 7.15
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 6.02
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: kr8.50 ▲(0.00% Upside)

Avensia AB's overall stock score reflects a mixed financial performance with improved profitability but declining revenue growth and high leverage. Technical analysis indicates bearish momentum, while valuation is relatively attractive with a reasonable P/E ratio and high dividend yield. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Improved Profitability

Improved profitability indicates better cost management and operational efficiency, which can enhance long-term financial stability.

Return on Equity

High return on equity reflects efficient use of equity to generate profits, suggesting strong management performance and potential for shareholder value.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single income source, providing resilience against market fluctuations and enhancing growth potential.

Negative Factors

Declining Revenue Growth

A significant decline in revenue growth indicates challenges in market expansion and customer acquisition, potentially impacting future earnings.

High Leverage

High leverage can increase financial risk and limit flexibility, making the company vulnerable to interest rate changes and economic downturns.

Declining Free Cash Flow

Declining free cash flow growth suggests potential liquidity challenges, which could constrain investment in growth opportunities and debt servicing.

Avensia AB Business Overview & Revenue Model

Company Description

Avensia AB (publ) provides e-commerce solutions. The company offers Episerver Commerce, an e-commerce platform; inRiver Product Information Management platform, which enables omni-channel commerce professionals to create, manage, and distribute product information to various sales channels in various languages; and Apptus eSales platform for the management of various aspects of customer experience in search, navigation, and recommendations. It also provides Riversand, a cloud SaaS platform to enhance business agility and collaboration across the enterprise; Voyado, a customer loyalty platform that integrates various customer data with analysis and communication tools; Klarna, a payment solution platform; Mirakl platform, which enables to launch e-commerce marketplace; and Quicksearch platform for customer experience program. In addition, the company offers omni-channel, information management, strategy, search and relevance, and design services. It serves customers in sports, fashion, and manufacturing industries in B2B and B2C markets. The company was formerly known as InXL Innovation AB (publ) and changed its name to Avensia AB (publ) in June 2015. Avensia AB (publ) is based in Lund, Sweden.

How the Company Makes Money

Avensia generates revenue primarily through consulting and project-based services, where they charge fees for developing and implementing e-commerce solutions for clients. Key revenue streams include service fees from custom software development, ongoing maintenance contracts, and digital marketing services. Additionally, the company may benefit from partnerships with major e-commerce platforms and technology providers, allowing them to leverage these relationships to enhance their service offerings. They also earn revenue from subscription-based models or licenses associated with their proprietary software solutions, contributing to a diversified income stream.

Avensia AB Financial Statement Overview

Summary

Avensia AB's financial performance is mixed. While profitability and return on equity have improved, the company faces challenges with declining revenue growth and high leverage. Cash flow management shows weaknesses with declining free cash flow growth, posing potential risks.

Income Statement

Avensia AB's income statement reflects a mixed performance. The company has shown improvement in profitability with a positive net profit margin of 5.26% in the TTM, up from previous losses. However, the revenue growth rate has declined significantly by 61.2% in the TTM, indicating challenges in sustaining top-line growth. The gross profit margin and EBIT margin have improved, suggesting better cost management, but the overall revenue decline remains a concern.

Balance Sheet

The balance sheet of Avensia AB shows a high debt-to-equity ratio of 1.33 in the TTM, indicating significant leverage, which could pose financial risks. However, the return on equity has improved to 53.14%, reflecting efficient use of equity to generate profits. The equity ratio remains moderate, suggesting a balanced asset structure. Overall, while profitability has improved, the high leverage warrants caution.

Cash Flow

Avensia AB's cash flow statement indicates a decline in free cash flow growth by 16.54% in the TTM, highlighting potential liquidity challenges. The operating cash flow to net income ratio is below 1, suggesting that not all net income is being converted into cash. However, the free cash flow to net income ratio is nearly 1, indicating that free cash flow is closely aligned with net income, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	432.43M	422.25M	413.71M	431.49M	390.08M	316.88M
Gross Profit	81.14M	85.94M	55.31M	68.51M	72.66M	38.13M
EBITDA	53.34M	46.77M	10.52M	-432.00K	34.83M	14.84M
Net Income	23.72M	16.85M	-4.75M	-12.12M	17.56M	1.12M
Balance Sheet
Total Assets	193.92M	220.10M	198.26M	182.78M	178.41M	166.90M
Cash, Cash Equivalents and Short-Term Investments	36.31M	42.30M	15.67M	15.41M	36.36M	41.48M
Total Debt	48.98M	71.77M	72.56M	52.11M	15.74M	22.57M
Total Liabilities	149.82M	178.75M	173.92M	152.35M	111.41M	107.64M
Stockholders Equity	44.09M	41.34M	24.34M	30.43M	67.00M	59.26M
Cash Flow
Free Cash Flow	45.82M	49.08M	2.93M	14.10M	13.52M	19.92M
Operating Cash Flow	45.96M	49.19M	3.70M	15.08M	19.85M	31.58M
Investing Cash Flow	-136.00K	-125.00K	-782.00K	-990.00K	-6.34M	-11.72M
Financing Cash Flow	-33.11M	-23.08M	-2.97M	-35.71M	-19.89M	-13.50M

Avensia AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AVEN, the sentiment is Negative. The current price of 8.5 is above the 20-day moving average (MA) of 8.39, above the 50-day MA of 8.46, and below the 200-day MA of 10.00, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 41.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:AVEN.

Avensia AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXS	68 Neutral	kr2.08B	28.31	15.90%	1.13%	10.92%	-2.56%
SOF.B	66 Neutral	kr1.15B	15.18	27.44%	6.29%	4.00%	-12.08%
PACT	63 Neutral	kr3.04B	19.31	14.35%	2.13%	-4.36%	-31.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CAG	60 Neutral	kr781.27M	16.18	―	3.83%	-4.42%	-6.27%
AVEN	56 Neutral	kr315.55M	13.30	60.73%	5.95%	4.24%	44.03%
B3	55 Neutral	kr396.36M	146.30	1.19%	―	13.21%	-97.19%