AVTECH Sweden AB (AVT.B) AI Stock Analysis

• Market Cap: kr411.17M
• Dividend Yield: 1.22%
• Average Volume (3M): 121.91K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.08
• Revenue Growth: 34.25%
• EPS Growth: 57.77%
• Country: SE
• Employees: 20
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): N/A
• Shares Outstanding: 49,154,922
• 10 Day Avg. Volume: 150,015
• 30 Day Avg. Volume: 121,911
• PEG Ratio: 0.71
• Price to Book (P/B): 7.07
• Price to Sales (P/S): 9.72
• P/FCF Ratio: 32.67
• 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: 69 Neutral
• Price Target: kr7.50 ▼(-9.86% Downside)

The score is primarily supported by strong financial performance (high margins, improving cash generation, and negligible leverage). This is materially offset by weak technicals (price below all major moving averages with negative momentum indicators). Valuation is neutral-to-slightly negative due to the relatively high P/E, with only a modest dividend yield providing support.

Positive Factors

High and improving profitability

Margins near ~36% provide a durable earnings cushion and strong internal cash generation. Sustained high profitability supports reinvestment in product development and modest shareholder distributions, underpins 2024 ROE ~26.8%, and reduces sensitivity to modest top‑line fluctuations over the next 2–6 months.

Very conservative balance sheet

Negligible leverage gives the company durable financial flexibility to fund operations, invest in R&D, and withstand sector downturns without refinancing risk. Low debt supports solvency and strategic optionality, reducing bankruptcy and liquidity risk during cyclical aviation shocks.

Specialized aviation decision‑support niche

A focused product set for airlines and air‑traffic stakeholders creates domain expertise, specialized data assets, and customer stickiness. This niche positioning can generate recurring contracts and high switching costs, supporting sustainable revenue streams and defensibility versus generalist competitors.

Negative Factors

Historical revenue and earnings volatility

Past uneven revenue growth and loss‑making years signal that earnings and cash flow can be cyclical. This increases forecasting risk and implies that current profitability could reverse under adverse conditions, limiting predictability of cash generation and capital allocation over the medium term.

Limited scale / small headcount

A 20‑person headcount constrains product development bandwidth, global sales coverage and customer support. Limited scale raises key‑person concentration risk, may slow enterprise sales cycles, and hampers rapid geographic or product expansion versus better‑resourced competitors.

Concentration in aviation sector exposure

Revenue tied to airlines and air‑traffic stakeholders makes demand sensitive to travel cycles, airline budgeting and regulatory or system shocks. Structural industry downturns or cost‑cutting by carriers can materially reduce spending on optimization tools, amplifying revenue and cash‑flow risk.

AVTECH Sweden AB Business Overview & Revenue Model

Company Description

AVTECH Sweden AB (publ) engages in the development and sale of software services in the aviation industry. The company's portfolio consists of Aventus, an automated meteorological service for connected aircraft that delivers wind and temperature data to cockpit; ClearPath, a ground-based service that communicates with the aircraft in real-time and calculates the cost-optimal flight profile through the current atmosphere; SIGMA, an automatic service that provides turbulence data and weather risks, and updates on hazards; and proFLIGHT, a unique decision support tool for professional pilots. AVTECH Sweden AB (publ) was founded in 1988 and is based in Kista, Sweden.

How the Company Makes Money

AVTECH Sweden AB generates revenue through the sale and licensing of its aviation software solutions and services to airlines and other aviation industry stakeholders. Its key revenue streams include subscription fees for its software-as-a-service (SaaS) products, such as flight optimization tools and real-time weather data services. The company may also engage in strategic partnerships with airlines and technology providers to expand its market reach and enhance its service offerings. Additionally, AVTECH may receive income from consulting services related to the implementation and integration of its solutions into clients' operations.

AVTECH Sweden AB Financial Statement Overview

Summary

Strong recent fundamentals: high profitability (2024 net and EBIT margins ~36%), very conservative balance sheet with negligible debt, and improving operating/free cash flow (2024 OCF/FCF 10.2m). Main constraint is historical volatility and uneven revenue growth, including loss-making years in 2020–2021.

Income Statement

Profitability has improved materially versus the loss-making period in 2020–2021. The company posted strong margins in the most recent annual period (2024 revenue 34.3m with ~36.7% net margin and ~36.6% EBIT margin) and also improved year over year versus 2023 (higher revenue and higher net income). Revenue growth is positive, but the growth rate appears uneven across years (including declines in 2020–2021), which is the main constraint on an otherwise strong earnings profile.

Balance Sheet

The balance sheet is very conservatively financed with negligible debt (debt-to-equity near zero across all years, including 0.0 in 2023 and ~0.002 in 2024). Equity has steadily built alongside improved profitability, supporting a strong solvency position. Return on equity is solid in the latest periods (about 26.8% in 2024 and 22.5% in 2023), though it was negative during 2020–2021, highlighting that results can be cyclical.

Cash Flow

Cash generation has strengthened meaningfully after negative operating and free cash flow in 2020–2021. In 2024, operating cash flow and free cash flow were both 10.2m, up from 8.2m in 2023 and 4.4m in 2022, indicating improving cash conversion and funding capacity. A watch item is that cash flows were volatile earlier in the period, suggesting sensitivity to operating conditions despite the recent consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.20M	34.30M	27.50M	21.40M	11.80M	12.27M
Gross Profit	26.30M	24.10M	21.09M	25.04M	14.36M	14.50M
EBITDA	13.90M	12.56M	9.05M	9.75M	1.72M	-300.31K
Net Income	14.70M	12.60M	9.04M	6.10M	-1.40M	-1.99M
Balance Sheet
Total Assets	53.60M	51.60M	43.41M	33.66M	27.93M	30.57M
Cash, Cash Equivalents and Short-Term Investments	27.20M	27.40M	22.83M	14.64M	10.19M	12.15M
Total Debt	0.00	78.96K	0.00	79.90K	78.33K	81.99K
Total Liabilities	4.30M	4.50M	3.17M	2.47M	2.84M	4.08M
Stockholders Equity	49.30M	47.10M	40.23M	31.19M	25.09M	26.49M
Cash Flow
Free Cash Flow	12.10M	10.20M	8.20M	4.40M	-2.00M	-1.10M
Operating Cash Flow	12.10M	10.20M	8.20M	4.40M	-2.00M	-1.10M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-5.60M	-5.60M	0.00	0.00	0.00	0.00

AVTECH Sweden AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AVT.B, the sentiment is Negative. The current price of 8.32 is above the 20-day moving average (MA) of 7.97, below the 50-day MA of 8.62, and below the 200-day MA of 9.71, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 31.25 is Neutral, neither overbought nor oversold. The STOCH value of 15.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:AVT.B.

AVTECH Sweden AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVT.B	69 Neutral	kr411.17M	24.27	35.19%	1.22%	34.25%	57.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CTT	61 Neutral	kr2.03B	35.63	―	2.75%	-3.14%	-35.70%