Axfood AB (AXFO) AI Stock Analysis

• Market Cap: kr61.97B
• Dividend Yield: 4.53%
• Average Volume (3M): 240.54K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.17
• Revenue Growth: 5.39%
• EPS Growth: -11.37%
• Country: SE
• Employees: 15,000
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Grocery Stores
• EPS (TTM): 2.83
• Shares Outstanding: 216,843,250
• 10 Day Avg. Volume: 243,229
• 30 Day Avg. Volume: 240,542
• PEG Ratio: -5.93
• Price to Book (P/B): 11.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.42
• 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: kr290.00
• Price Target Upside: 0.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ―

Axfood AB's overall stock score reflects its stable financial performance and strong cash generation capabilities, despite high leverage risks. Technical analysis suggests cautious optimism due to potential overbought conditions. Valuation appears high, indicating expectations of growth. Investors should be mindful of financial leverage and market momentum.

Axfood AB Business Overview & Revenue Model

Company Description

Axfood AB (AXFO) is a leading Swedish company in the retail and wholesale food sector. It operates a portfolio of well-known food retail chains, including Willys and Hemköp, which cater to a broad range of consumer needs. The company is committed to providing high-quality food products and services, focusing on sustainability and value for money. Axfood also offers a variety of private label products and is continuously expanding its digital and e-commerce capabilities to enhance customer experience and accessibility.

How the Company Makes Money

Axfood AB generates revenue primarily through the sale of food and related products via its retail chains, Willys and Hemköp. These chains operate both physical stores and online platforms, allowing the company to reach a wide customer base. The company also benefits from its private label products, which offer higher profit margins. Additionally, Axfood's wholesale business, Dagab, supplies goods to its own stores as well as to other retailers and food service providers, further contributing to its revenue streams. Strategic partnerships with suppliers and a focus on efficient supply chain management help maintain competitive pricing and healthy margins.

Axfood AB Financial Statement Overview

Summary

Axfood AB exhibits stable financial performance with solid revenue growth and operational efficiency. Profitability margins are decent but have room for improvement. The high debt-to-equity ratio suggests reliance on debt, posing risks. Strong cash flow ratios highlight robust cash generation despite a recent decline in free cash flow.

Income Statement

Axfood AB's income statement reveals a consistent growth trajectory. The TTM revenue growth rate is 0.94%, reflecting stable sales expansion. Gross profit margin stands at 14.57%, while net profit margin is 2.45%, indicating efficient cost management though there's room for improvement in profitability. EBIT margin is 3.76%, and EBITDA margin is 8.04%, both demonstrating solid operational efficiency.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 2.82, suggesting high leverage which could be risky if not managed properly. Return on equity is 37.03%, indicating strong profitability relative to equity. The equity ratio is 15.85%, suggesting a lower proportion of the company's assets are financed by equity, pointing to potential financial vulnerability.

Cash Flow

Cash flow analysis indicates a free cash flow growth rate of -9.18%, showing a decline which may warrant concern. However, the operating cash flow to net income ratio is 2.40, and the free cash flow to net income ratio is 1.71, demonstrating strong cash generation capabilities relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.06B	81.11B	73.47B	57.89B	53.70B
Gross Profit	12.23B	11.33B	10.08B	8.95B	8.55B
EBITDA	6.68B	6.47B	5.78B	5.16B	4.82B
Net Income	2.19B	2.36B	2.36B	2.15B	1.91B
Balance Sheet
Total Assets	35.43B	30.02B	28.62B	23.73B	18.81B
Cash, Cash Equivalents and Short-Term Investments	735.00M	688.00M	559.00M	734.00M	-5.71B
Total Debt	15.30B	9.76B	9.25B	8.00B	5.71B
Total Liabilities	28.04B	22.83B	21.72B	18.55B	14.25B
Stockholders Equity	7.05B	6.88B	6.61B	4.95B	4.33B
Cash Flow
Free Cash Flow	3.92B	3.86B	3.33B	2.77B	3.82B
Operating Cash Flow	5.46B	5.81B	5.93B	4.59B	4.85B
Investing Cash Flow	-3.18B	-2.21B	-2.78B	-3.84B	-1.08B
Financing Cash Flow	-2.23B	-3.47B	-3.32B	-1.55B	-3.04B

Axfood AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 289.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AXFO, the sentiment is Positive. The current price of 289.1 is above the 20-day moving average (MA) of 284.65, above the 50-day MA of 278.30, and above the 200-day MA of 247.43, indicating a bullish trend. The MACD of 3.38 indicates Positive momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 47.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:AXFO.

Axfood AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLA.B	77 Outperform	$9.47B	14.24	11.94%	3.35%	1.61%	34.76%
SCST	76 Outperform	kr6.10B	21.49		3.80%	4.70%	0.33%
HUMBLE	72 Outperform	kr3.48B	40.50	1.69%	―	6.82%	―
AXFO	66 Neutral	kr61.97B	29.22	34.34%	4.53%	5.39%	-11.37%
Sector *	63 Neutral	kr23.72B	14.38	52.46%	5.37%	8.67%	-20.50%
MSON.B	62 Neutral	€1.21B	60.36	0.63%	2.41%	-0.35%	―
DUNI	61 Neutral	kr4.32B	19.65	6.56%	55.28%	2.62%	-40.22%

Axfood AB Corporate Events

Axfood AB Reports Strong Q2 2025 Performance with Market-Leading Growth

Axfood AB reported a strong second quarter in 2025, with growth significantly surpassing the market average. The company’s strategic investments in automation and logistics have enhanced efficiency and competitiveness, contributing to a 23% increase in retail sales, driven primarily by Willys. The acquisition of City Gross has expanded Axfood’s presence in the hypermarket segment, with plans to achieve profitability by the second half of 2026. The company also emphasized its commitment to sustainability by opening Sweden’s largest solar park and increasing the use of renewable fuels in transportation. These developments are expected to lead to annual cost savings and further investments in enhancing competitiveness.

The most recent analyst rating on (SE:AXFO) stock is a Buy with a SEK330.00 price target. To see the full list of analyst forecasts on Axfood AB stock, see the SE:AXFO Stock Forecast page.

Axfood AB to Present Q2 2025 Interim Report

Axfood AB has announced an upcoming presentation of its second quarter 2025 interim report, scheduled for 11 July. The company’s President and CEO, Simone Margulies, along with CFO Anders Lexmon, will present the report in English. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market position and investor relations.

The most recent analyst rating on (SE:AXFO) stock is a Buy with a SEK330.00 price target. To see the full list of analyst forecasts on Axfood AB stock, see the SE:AXFO Stock Forecast page.

Axfood Announces Capital Markets Day to Unveil Long-term Strategy

Axfood AB has announced its upcoming Capital Markets Day, scheduled for September 18, 2025, in Stockholm. The event aims to update institutional investors, analysts, and financial media on the company’s long-term strategy, featuring presentations by senior executives and a tour of the refurbished Hemköp Torsplan store. This initiative reflects Axfood’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (SE:AXFO) stock is a Buy with a SEK330.00 price target. To see the full list of analyst forecasts on Axfood AB stock, see the SE:AXFO Stock Forecast page.